Applied Optoelectronics (NASDAQ:AAOI) Shares Down 7.6% – Should You Sell?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) dropped 7.6% during mid-day trading on Monday . The company traded as low as $28.70 and last traded at $29.20. Approximately 630,752 shares changed hands during mid-day trading, a decline of 75% from the average daily volume of 2,502,750 shares. The stock had previously closed at $31.60.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on AAOI shares. Rosenblatt Securities boosted their price target on shares of Applied Optoelectronics from $27.50 to $44.00 and gave the company a “buy” rating in a report on Friday, December 13th. Raymond James raised their price target on shares of Applied Optoelectronics from $17.00 to $39.00 and gave the company an “outperform” rating in a research note on Friday, December 20th. B. Riley downgraded Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price objective for the company. in a research report on Tuesday, December 10th. Northland Securities restated an “outperform” rating and issued a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. Finally, StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a research report on Friday, January 3rd. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $29.20.

Applied Optoelectronics Trading Down 7.2 %

The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36. The firm has a 50-day moving average price of $33.44 and a 200-day moving average price of $19.52. The company has a market capitalization of $1.37 billion, a price-to-earnings ratio of -14.24 and a beta of 2.39.

Insider Activity at Applied Optoelectronics

In other news, insider Hung-Lun (Fred) Chang sold 20,323 shares of the business’s stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $30.35, for a total transaction of $616,803.05. Following the sale, the insider now owns 195,572 shares in the company, valued at $5,935,610.20. The trade was a 9.41 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $35.27, for a total transaction of $352,700.00. Following the transaction, the director now owns 167,813 shares in the company, valued at approximately $5,918,764.51. The trade was a 5.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 86,769 shares of company stock valued at $3,015,537 over the last ninety days. Insiders own 5.40% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Institutional investors have recently bought and sold shares of the business. Westfield Capital Management Co. LP purchased a new position in Applied Optoelectronics during the third quarter valued at approximately $19,019,000. Whale Rock Capital Management LLC purchased a new position in Applied Optoelectronics in the third quarter valued at about $16,145,000. Shellback Capital LP acquired a new position in Applied Optoelectronics in the 2nd quarter worth about $8,617,000. Royce & Associates LP lifted its holdings in shares of Applied Optoelectronics by 47.7% during the 3rd quarter. Royce & Associates LP now owns 1,596,545 shares of the semiconductor company’s stock valued at $22,847,000 after buying an additional 515,489 shares during the last quarter. Finally, JAT Capital Mgmt LP acquired a new stake in shares of Applied Optoelectronics during the 3rd quarter valued at about $6,470,000. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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.