Supermicro Stock Extends Rally on Expectation of Plan to Avoid Delisting

On By Littum

Key takeaways

  • Super Micro Computer shares rose in early trading Monday, extending their rally on expectations that the technology company is preparing to file a plan to avoid being delisted.
  • Barron’s reported Friday that Supermicro was on track to file a plan with the stock exchange by Monday to remain listed.
  • The gain comes after Supermicro shares have lost ground in recent months after being accused of “accounting manipulation” and delaying the filing of its annual report.

Shares of Super Micro Computer ( SMCI ) rose in early trading Monday, extending their rally on expectations that the company is preparing to file a plan to avoid being delisted from the Nasdaq stock exchange.

Quoting a famous person, Barron’s reported Friday that the server maker expects to be able to meet the deadline set by Nasdaq by submitting a plan by Monday.

Gains come after hit from delisting concerns

The gain comes after the stock took a hit in recent months from concerns that the company’s stock was delisted after it delayed submitting its annual report in August. The company said it received a letter from Nasdaq on Sept. 17 informing Supermicro of a 60-day deadline to file the late report, with a weekend deadline leaving Monday as the effective date.

Earlier this month, the company said it “remains unable to predict at this time” when it would file the delayed annual report. Last week, Supermicro said its official first-quarter results would also be delayed as it hires a new auditor to review its results after accounting firm EY stepped down.

EY’s resignation followed months of speculation about Supermicro’s financials after its annual report was delayed and a report by short-seller Hindenburg Research accused it of “accounting manipulation” and other wrongdoing.

Supermicro shares rose more than 18% after the market opened on Monday, but were still down more than 80% from their March highs.