Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down After Earnings Miss

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $25.19, but opened at $24.00. Applied Optoelectronics shares last traded at $23.04, with a volume of 1,989,716 shares traded.

The semiconductor company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.07). Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%. The company had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on AAOI. B. Riley lowered Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 target price for the company. in a research note on Tuesday, December 10th. Rosenblatt Securities reaffirmed a “buy” rating and set a $44.00 target price on shares of Applied Optoelectronics in a report on Monday. StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a research report on Wednesday. Northland Securities reissued an “outperform” rating and set a $40.00 price target (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. Finally, Raymond James upped their price objective on shares of Applied Optoelectronics from $17.00 to $39.00 and gave the company an “outperform” rating in a report on Friday, December 20th. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $29.20.

Insider Transactions at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 2,298 shares of the firm’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total transaction of $80,820.66. Following the sale, the chief financial officer now owns 209,831 shares in the company, valued at approximately $7,379,756.27. This trade represents a 1.08 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total value of $290,000.00. Following the completion of the transaction, the director now owns 157,813 shares of the company’s stock, valued at approximately $4,576,577. This represents a 5.96 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 46,088 shares of company stock valued at $1,672,801 in the last 90 days. 5.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. GF Fund Management CO. LTD. purchased a new stake in Applied Optoelectronics in the 4th quarter worth $5,068,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Applied Optoelectronics by 17.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 78,959 shares of the semiconductor company’s stock worth $2,910,000 after purchasing an additional 11,684 shares in the last quarter. Voloridge Investment Management LLC acquired a new position in shares of Applied Optoelectronics during the 4th quarter worth about $13,035,000. Two Sigma Advisers LP lifted its stake in Applied Optoelectronics by 265.8% in the 4th quarter. Two Sigma Advisers LP now owns 57,800 shares of the semiconductor company’s stock valued at $2,131,000 after buying an additional 42,000 shares in the last quarter. Finally, Two Sigma Investments LP boosted its holdings in Applied Optoelectronics by 10.5% in the 4th quarter. Two Sigma Investments LP now owns 588,469 shares of the semiconductor company’s stock worth $21,691,000 after buying an additional 55,863 shares during the last quarter. 61.72% of the stock is owned by institutional investors and hedge funds.

Applied Optoelectronics Trading Down 1.4 %

The company has a 50 day simple moving average of $30.81 and a 200 day simple moving average of $23.92. The company has a market capitalization of $1.16 billion, a PE ratio of -12.06 and a beta of 2.36. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.06 and a current ratio of 1.61.

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.