Super Micro Computer (SMCI) faces a critically important deadline that could see its stock delisted from the Nasdaq (NDAQ) exchange on which it trades.
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SMCI stock could be removed from the Nasdaq as soon as November 18 if the maker of high-efficiency servers fails to file a viable plan for becoming compliant with Nasdaq’s listing rules. Super Micro is late in filing its Fiscal 2024 annual report as well as some accounting documents related to its third-quarter financial results with the U.S. Securities and Exchange Commission (SEC).
Super Micro Computer has until November 18 to file the required documents with the SEC and become compliant with Nasdaq’s regulations or risk being kicked off the exchange. The company has said that it will provide a plan to achieve compliance with Nasdaq before the deadline, but has not done so yet. Super Micro could request an extension from Nasdaq to file the documents needed to become compliant.
SMCI Stock Plunge
News of a potential delisting from the Nasdaq exchange comes as SMCI stock plunges amid a widening accounting scandal. The company’s share price has fallen 72% in the last three months after short seller Hindenburg Research accused Super Micro Computer of accounting malfeasance and the company’s auditor resigned.
It’s a sharp reversal for SMCI stock, which soared more than 14-fold from the end of 2022 to its peak in March of this year. In this year’s first half, SMCI stock was one of the top performers in the benchmark S&P 500 index as investors cheered the company’s role in the artificial intelligence (AI) boom.
However, the accounting scandal and risk of being delisted from the Nasdaq have pushed the stock lower, resulting in a decline of 38% on the year.
Is SMCI Stock a Buy?
Super Micro Computer’s stock has a consensus Hold rating among 11 Wall Street analysts. That rating is based on three Buy, six Hold, and two Sell recommendations made in the last three months. The average SMCI price target of $47.04 implies 167.27% upside from current levels.
