Super Micro Computer, a leading semiconductor technology company has formally joined the increasing number of tech companies implementing stock splits. Super Micro Computer (SMCI) is going for a stock split to make the shares affordable to shareholders. The Company’s Board of Directors had authorized a 10-for-1 forward split of its common stock and the trading is expected to commence on a split-adjusted basis on October 1, 2024.

Super Micro Computer listed on Nasdaq closed at $416.40 on Monday, September 30, 2024. On Tuesday, October 1, the SMCI share is expected to trade at open on a split-adjusted basis at a price of around $41.

However, shareholders need not worry as the value of their shares remains the same. The 10-for-1 stock split will convert each existing share into 10 new shares at a tenth of the previous day’s closing price.

A company’s stock price decreases by the same factor as its outstanding shares increase after a split. Therefore, Supermicro’s 10-for-1 split will reflect in the falling of the share price of the company.

Stock splits have no impact on the valuation of the company’s share price, however, investors may perceive the stock as less expensive, increasing their likelihood to purchase.

The record date for Super Micro Computer stock split is September 30. The US SEC filings by the company states – “On September 30, 2024, the Company filed an amendment to the Company’s Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to effect a ten-for-one forward split (Stock Split) of the Company’s common stock, par value $0.001 per share, without any change to its par value. The Amendment also effected a proportionate increase in the number of shares of authorized Common Stock from 100,000,000 to 1,000,000,000.

The Stock Split became effective at 5:00 p.m. Eastern Time on September 30, 2024. Trading in the Common Stock on the Nasdaq Global Select Market is expected to commence on a Stock Split-adjusted basis at the market open on October 1, 2024, under the existing trading symbol “SMCI.” The new CUSIP number for the Common Stock following the Stock Split is 86800U302.

As a result of the Stock Split, every one (1) share of Common Stock issued and outstanding was automatically divided into ten (10) shares of Common Stock. The Stock Split does not modify any rights or preferences of the shares of the Common Stock. Proportionate adjustments were automatically made to the number of shares of Common Stock underlying the Company’s outstanding equity awards, equity incentive plans, and other existing agreements, as well as exercise or conversion prices, as applicable”

SMCI shares are going to be in focus again after rising 45% YTD by same percentage over the last 12-months.

Super Micro Computer in News

Company received a notification letter from Nasdaq stating that the Company is not in compliance with Nasdaq listing rule, which requires timely filing of reports with the U.S. Securities and Exchange Commission. The Form 10-K was due on August 29, 2024. The Company filed a Form 12b-25 on August 30, 2024.

Super Micro Computer was added to the Nasdaq-100 and Nasdaq-100 Equal Weighted Indices on July 22, 2024.

On August 6, Super Micro Computer announced fourth quarter and full-year financial results for fiscal year 2024 ended June 30, 2024.

In August, Super Micro Computer was the target of a new investigation by Hindenburg Research regarding potential accounting manipulation and sanctions evasion.

Shareholder Brokerage Account

The Company’s transfer agent, Computershare Trust Company is acting as exchange agent for the Stock Split. Following the Effective Time, registered stockholders holding certificated shares of Common Stock before the Stock Split will be asked to deliver a letter of transmittal to Computershare to surrender their certificates to Computershare in exchange for the right to receive post-Stock Split shares of Common Stock in electronic, book-entry form.

Certificated Old Shares will continue to evidence shares of post-Stock Split Common Stock, but must be surrendered to Computershare following the instructions outlined in the letter of transmittal before any transfer of such shares following the Stock Split.

Registered stockholders who hold their shares of Common Stock electronically in book-entry form are not required to take any action to receive post-Stock Split shares.

Stockholders owning Common Stock via a broker, bank, custodian or other nominee will have their positions automatically adjusted to reflect the Stock Split, subject to such broker’s particular processes, and will not be required to take any action in connection with the Stock Split.