SUPER MICRO COMPUTER INC's investors have gotten some relief this week, as the beleaguered server maker said it has a new auditor and has submitted a plan to the Nasdaq for how it intends to get current with filing requirements.
That's translated into a 78% weekly surge in Super Micro's stock, the biggest weekly gain on record. That increase is more than double the prior weekly record of 33.5%, which was seen in the week that ended May 26, 2023.
Still, the stock is off from its former glory, down 72% from its March closing high. At one point, Super Micro shares were up more than 300% on the year, but now they're up only 17% in 2024, after recently clawing back into positive territory.
Super Micro's announcements this week gave investors more confidence that the company will be able to get back in compliance with filing requirements necessary to retain its Nasdaq listing. Super Micro has delayed several filings while looking into its financial controls and after its prior auditor, Ernst & Young, recently resigned.
Ernst & Young raised concerns about Super Micro's accounting, but the company has said that a special committee looked into those initial concerns and found that the audit committee at Super Micro "acted independently and that there is no evidence of fraud or misconduct on the part of management or the board of directors."
It remains to be seen whether Super Micro is indeed out of the woods with its accounting saga, however, and if the recent issues will draw the eye of regulators. The company also still needs to win Nasdaq approval for its plan to file the delayed reports.
Some other positives this week include that NVIDIA Corp called out the company as one of its partners on its earnings call. Nvidia has done so in the past as well, but this mention was welcome to Super Micro investors as some had worried the accounting issues would cloud the company's relationships with partners.
Further, S&P Dow Jones Indices announced Thursday that Texas Pacific Land would soon replace Marathon Oil in the S&P 500 SPX. That the committee didn't also boot Super Micro for poor recent stock performance while making that other change is perhaps a reassuring sign that Super Micro isn't in immediate danger of losing its spot in the high-profile index.
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