Super Micro Computer (SMCI) has disclosed a new risk, in the Debt & Financing category.
Super Micro Computer faces a considerable business risk due to its Convertible Notes. The potential conversion of these notes into shares may lead to dilution of existing stockholders’ equity, thereby potentially undermining their value in the company. Furthermore, market transactions involving these Convertible Notes or the common stock associated with them could negatively impact the stock’s market price. The mere presence of Convertible Notes on the market might also embolden short selling, which could exert downward pressure on the stock price, particularly if conversions are expected to occur.
Overall, Wall Street has a Moderate Buy consensus rating on SMCI stock based on 7 Buys and 4 Holds.
To learn more about Super Micro Computer’s risk factors, click here.