Super Micro Computer’s shares experienced a remarkable 31% increase on Monday, climbing to $42.73 per share, following the company’s announcement that an internal inquiry revealed no signs of accounting misconduct. This development came after a special committee, which included professionals from Cooley LLP and forensic experts from Secretariat Advisors, examined the allegations and exonerated the company.
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The issue first arose when Ernst & Young, Super Micro’s former auditor, stepped down in October, citing worries related to governance and independence. These concerns were further highlighted by short-seller Hindenburg Research and reports of an investigation by the Department of Justice. This series of events raised concerns that the company might face delisting from Nasdaq due to missed deadlines for filing its annual report.
Sorry. Don’t believe it.
MW Super Micro’s stock soars as internal probe finds no evidence of fraud by management $smci pic.twitter.com/ZRc9whS9mh
— Adrian (@squawk_hawk) December 2, 2024
Nonetheless, the favorable outcome of the investigation has bolstered investor confidence, allowing Super Micro’s stock to recover some of its losses. After peaking at $119 per share in March, the company experienced a steep decline of 84%, falling to an all-time low of $18 last month.
The investigation’s conclusions have mitigated concerns regarding potential delisting, as Super Micro has since put forth a plan to comply with Nasdaq requirements, aiming to secure an extension to file its report by February.
This moment is significant for the company as it grapples with ongoing challenges, and it appears that investors are optimistic about its path to recovery.
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