If you bought a share of Super Micro Computer stock at the IPO, here’s how many shares you’d own now

Super Micro Computer (NASDAQ: SMCI) had its initial public offering (IPO) in March 2007 at a price of $8 per share. The stock has frequently seen volatile swings, but it started 2020 at around $24 a share — triple its IPO price. While the performance came up short S&P 500Total return of 197.5% on that stretch, the stock’s performance in trading this decade has been absolutely incredible.

Super Micro Computer’s incredible performance this year has resulted in a stock split

Driven by growing demand for high-performance rack servers capable of training and running artificial intelligence (AI) systems, Supermicro’s sales, earnings and share price have seen incredible growth. The stock climbed as high as $1,229 per share earlier this year, and the company’s management later announced it would go ahead with a 10-for-1 stock split. While the company’s stock price has fallen substantially in recent months, the split entered into force on October 1.

The recently completed 10-for-1 stock split is the only split in the company’s history. In other words, you would now own 10 shares if you bought one share of the company’s stock on the day of the IPO and held onto its position. If you bought a share at the company’s IPO price, you’d now have 10 shares worth a combined total of about $416 as of this writing — good for a 5,100% return.

On the other hand, Supermicro shares are actually down about 33% since the stock split was first announced in August. The stock split has matched rising stock prices for other companies, but the server technology specialist has recently been hit by several valuation headwinds. Catalysts for the selloff included disappointing gross margins, a short seller from Hindenburg Research, a late 10-K filing and a report that the company may be under investigation by the DoJ.

Supermicro’s recent stock split didn’t change any fundamental aspects of the business, but the split may make the stock more attractive to some investors.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

If You Bought a Share of Super Micro Computer Stock at the IPO, Here’s How Much Share You’d Own Now was originally published by The Motley Fool