Applied Optoelectronics (NASDAQ:AAOI) Shares Down 4.2% – Should You Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded down 4.2% during trading on Monday . The stock traded as low as $21.19 and last traded at $21.19. 4,342,390 shares changed hands during trading, an increase of 4% from the average session volume of 4,180,287 shares. The stock had previously closed at $22.11.

Analysts Set New Price Targets

Several research analysts recently weighed in on AAOI shares. B. Riley upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price objective for the company in a research report on Friday, March 7th. Northland Securities reaffirmed an “outperform” rating and set a $40.00 price target (up previously from $25.00) on shares of Applied Optoelectronics in a research note on Wednesday, December 18th. Rosenblatt Securities reiterated a “buy” rating and issued a $36.00 price target on shares of Applied Optoelectronics in a report on Friday. StockNews.com raised Applied Optoelectronics to a “sell” rating in a report on Wednesday, February 26th. Finally, Raymond James raised their target price on shares of Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a research note on Friday, February 28th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $25.80.

Applied Optoelectronics Trading Down 5.4 %

The company has a market capitalization of $1.04 billion, a P/E ratio of -10.24 and a beta of 2.36. The business has a 50 day moving average price of $26.15 and a 200 day moving average price of $24.81. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Wednesday, February 26th. The semiconductor company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.07). The firm had revenue of $100.27 million during the quarter, compared to the consensus estimate of $99.92 million. Applied Optoelectronics had a negative net margin of 38.61% and a negative return on equity of 22.36%. Analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Insiders Place Their Bets

In related news, Director Richard B. Black sold 10,000 shares of the firm’s stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total transaction of $290,000.00. Following the sale, the director now directly owns 157,813 shares in the company, valued at $4,576,577. This trade represents a 5.96 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Stefan J. Murry sold 2,298 shares of the company’s stock in a transaction on Tuesday, January 21st. The stock was sold at an average price of $35.17, for a total transaction of $80,820.66. Following the completion of the transaction, the chief financial officer now directly owns 209,831 shares of the company’s stock, valued at approximately $7,379,756.27. The trade was a 1.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 16,298 shares of company stock worth $497,701. Corporate insiders own 5.40% of the company’s stock.

Institutional Trading of Applied Optoelectronics

A number of institutional investors have recently modified their holdings of the company. Meeder Asset Management Inc. acquired a new stake in Applied Optoelectronics in the 4th quarter valued at approximately $38,000. Sterling Capital Management LLC raised its holdings in shares of Applied Optoelectronics by 858.2% in the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock valued at $47,000 after purchasing an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board bought a new stake in shares of Applied Optoelectronics in the fourth quarter worth $63,000. Summit Investment Advisors Inc. grew its position in Applied Optoelectronics by 17.6% in the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 637 shares in the last quarter. Finally, Pingora Partners LLC acquired a new stake in Applied Optoelectronics in the 3rd quarter valued at $82,000. 61.72% of the stock is currently owned by institutional investors.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.