Super Micro Computer cofounder and senior vice president Sara Chiu-Chu Liu Liang, wife of CEO Charles Liang, has sold off all her personally held shares just days after the company regained Nasdaq compliance. The stock sale follows a strong rally in Super Micro’s share price after it issued delinquent financial filings.
Major Insider Stock Sales
This week, Liang offloaded 46,293 shares for a total of $2.3 million, leaving her with no personally held stock in Super Micro. Similarly, George Kao, senior vice president of operations, sold 71,720 shares valued at $3.6 million.
Despite selling her shares, Sara Liang indirectly holds over 67 million shares through her husband, Charles Liang. The CEO was also granted 1 million stock options as part of a compensation package tied to revenue and stock price goals. The award, initially issued in November 2023, includes up to 5 million shares distributed in tranches based on performance targets.
Super Micro’s Stock and Nvidia Connection
Super Micro remains a closely watched company due to its integration of Nvidia’s graphics processing units (GPUs) in its servers. The stock saw a staggering 3,000% rise before encountering setbacks in 2024.
Accounting Controversy and Nasdaq Compliance
The company faced scrutiny after short-seller Hindenburg Research raised concerns about its accounting practices. This was followed by the abrupt resignation of its auditor, EY, which cited integrity concerns. Super Micro conducted an internal review and found no evidence of wrongdoing, later appointing BDO USA as its new auditor.
Super Micro blamed its delayed financial reports on EY’s resignation, stating, “Due to EY’s stated concerns and subsequent resignation, we were unable to timely file our Annual Report and Quarterly Reports on Form 10-Q for the quarterly periods ended September 30, 2024, and December 31, 2024.”
Regulatory Scrutiny and Legal Challenges
While regaining Nasdaq compliance is a critical step, Super Micro still faces investigations by the Securities and Exchange Commission (SEC) and the Department of Justice. Additionally, the company has been hit with at least five lawsuits related to the delayed financial filings.
Looking Ahead: $40 Billion Revenue Target
Charles Liang remains optimistic about Super Micro’s future, stating that the company will now focus on reaching its $40 billion revenue goal for 2025. “Today’s filings represent an important milestone,” Liang said. “With our financial reporting now current, we can now fully focus on executing our proven winning growth strategy through technology, product and solution innovations, time-to-market advantage, global footprint, and green computing.”
Conclusion: Insider Selling Amid Uncertainty
The timing of insider stock sales, coupled with ongoing investigations, raises questions about Super Micro’s internal outlook. While the company has cleared a major hurdle by addressing its financial filings, investors will be closely watching for further developments in regulatory scrutiny and its ambitious revenue targets.
