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SMCI Stock Slumps 10% As Loan Agreements With Banks End Amid Ongoing Nasdaq Challenges

Benzinga ·  Nov 27, 2024 06:20

Super Micro Computer Inc. (NASDAQ:SMCI) experienced a significant stock decline on Tuesday, shedding 10.4% after announcing the termination of two critical loan agreements with major financial institutions.

What Happened: The company disclosed in a Securities and Exchange Commission filing that it had prepaid and terminated loan agreements with Cathay Bank and Bank of America N.A. on Nov 20. This move comes amid ongoing challenges with Nasdaq listing requirements and delayed financial reporting.

SMCI, a prominent server manufacturer known for its AI system infrastructure supporting NVIDIA Corp.'s (NASDAQ:NVDA) chips, has been navigating a turbulent financial period. The company recently faced a potential delisting threat after failing to meet Nasdaq's filing requirements.

Why It Matters: The stock experienced a dramatic rally, surging 65% in a single week. Shares rose from $20.03 on Nov 18 to $33.15 on Nov. 22, attempting to recover from a six-month slump that previously erased nearly 60% of its value.

With a market capitalization of $17.39 billion, the company maintains a relatively low price-to-earnings ratio of 17.15.

Super Micro Computer has hired a new independent auditor and committed to filing its earnings report soon.

Price Action: As of the latest trading session, the stock is priced at $34.42, reflecting a decline of 10.40% on Tuesday. Despite the recent drop, the stock has experienced a year-to-date gain of 20.54%, according to data from Benzinga Pro.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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    SMCI 公告8K 在11/20已經提前還款。看來公司在擴廠增加產能的情況下 現金流量還是很強壯的💪
    投資者可以透過公司官網了解最新公告com/news/defaul...
    那些利空新聞發佈揣測不明確的言論 造成大量投資者拋售股票 ,你願意為空頭的利潤買單嗎?

    Nov 27, 2024 11:19

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