Super Micro Stock Jumps As Data Center Firm Files Plan To Avoid Delisting

Shares of Super Micro hit a 52-week high on the news.

Shares of Super Micro Computer Inc. jumped as much as 14% on Thursday after the data center equipment maker filed a plan with the Nasdaq Stock Market to regain compliance with listing requirements.

The company said in a statement that it had filed a plan to regain compliance with the Nasdaq's minimum bid price requirement by submitting a reverse stock split proposal to its shareholders.

The Nasdaq had previously notified Super Micro that it was out of compliance with the minimum bid price requirement, which requires companies to maintain a minimum closing bid price of $1.00 per share for a minimum of 10 consecutive business days.

The plan must be approved by Super Micro's shareholders.

Super Micro said that its board of directors had unanimously approved the reverse stock split proposal and that it would be submitted to shareholders for a vote at a special meeting.

The company said that the reverse stock split would reduce the number of outstanding shares of common stock by a ratio of 1-for-5, which would increase the per-share price.

The Nasdaq has given Super Micro until December 29, 2023 to regain compliance with the minimum bid price requirement.

Analysts say the reverse stock split is a positive sign.

Analysts said that the reverse stock split was a positive sign for Super Micro, as it would help the company to regain compliance with the Nasdaq's listing requirements and avoid delisting.

“This is a positive development for Super Micro,” said analyst Patrick Moorhead of Moor Insights & Strategy.

“The company is taking steps to address the Nasdaq's concerns and avoid delisting, which would be a major setback for the company,” Moorhead said.

Super Micro faces challenges in the data center market.

Super Micro faces challenges in the data center market, which is becoming increasingly competitive.

The company is also facing supply chain issues and rising costs.

However, the company has a strong track record of innovation and a loyal customer base.