Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $17.30, but opened at $16.91. Applied Optoelectronics shares last traded at $15.90, with a volume of 573,587 shares.

Analysts Set New Price Targets

Several equities research analysts have commented on AAOI shares. B. Riley raised shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price target on the stock in a report on Friday, March 7th. Raymond James lifted their price target on Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a research report on Friday, February 28th. Northland Securities reaffirmed an “outperform” rating and set a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Rosenblatt Securities restated a “buy” rating and set a $44.00 target price on shares of Applied Optoelectronics in a research report on Monday, February 24th. Finally, StockNews.com raised Applied Optoelectronics to a “sell” rating in a report on Wednesday, February 26th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $27.40.

Applied Optoelectronics Price Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.06 and a current ratio of 1.61. The stock has a market capitalization of $795.66 million, a PE ratio of -7.79 and a beta of 2.36. The stock’s 50 day moving average is $26.86 and its two-hundred day moving average is $24.56.

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

Insider Transactions at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 2,298 shares of the business’s stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total transaction of $80,820.66. Following the transaction, the chief financial officer now directly owns 209,831 shares in the company, valued at approximately $7,379,756.27. The trade was a 1.08 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Richard B. Black sold 10,000 shares of the company’s stock in a transaction dated 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 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 sold 26,298 shares of company stock valued at $850,401 over the last 90 days. 5.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. purchased a new stake in Applied Optoelectronics in the 4th quarter valued at $38,000. Sterling Capital Management LLC boosted its position in shares of Applied Optoelectronics by 858.2% during the 4th quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock valued at $47,000 after acquiring an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board purchased a new stake in shares of Applied Optoelectronics in the fourth quarter valued at about $63,000. Pingora Partners LLC acquired a new stake in Applied Optoelectronics during the third quarter worth about $82,000. Finally, FMR LLC increased its position in Applied Optoelectronics by 3,290.6% during the third quarter. FMR LLC now owns 6,137 shares of the semiconductor company’s stock worth $88,000 after purchasing an additional 5,956 shares during the last quarter. Institutional investors and hedge funds own 61.72% of the company’s stock.

About Applied Optoelectronics

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.