The software concern is struggling amid postponed orders
Super Micro Computer Inc (NASDAQ:SMCI) stock is 16.4% lower to trade at $30.11 at last check, after the company lowered fiscal third-quarter profit and revenue guidance well below analysts' expectations. The software concern noted customers postponed orders for its servers and computing products, delaying up to $1.4 billion in sales.
In response, thee firms slashed their price objectives, including J.P. Morgan Securities to $36 from $39. More downward price revisions could be in store, too, as SMCI's 12-month consensus target price of $48.62 is currently a 62.3% premium to current levels.
Testing recent support at the $30 level, the security is well on its way to its worst day since November. The $40 region has acted as a ceiling since late February, following the security's rally to its highest level since August, while the 60-day moving average has been enacting pressure as well, contributing to SMCI's 65.2% year-over-year deficit.
Drilling down to today's options activity, 135,000 calls and 107,000 puts have crossed the tape so far, which is triple the intraday average volume. Most active is the weekly 5/2 30-strike put, where new positions are being opened.
Calls have been much more popular than usual in the options pits. This is per the security's 10-day call/put volume ratio of 2.61 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in 96th percentile of its annual range.