Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares gapped down before the market opened on Thursday . The stock had previously closed at $33.30, but opened at $32.24. Applied Optoelectronics shares last traded at $32.53, with a volume of 263,087 shares changing hands.

Wall Street Analyst Weigh In

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

Applied Optoelectronics Price Performance

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 company has a market cap of $1.52 billion, a P/E ratio of -15.79 and a beta of 2.39. The firm has a 50 day moving average of $34.75 and a 200-day moving average of $20.69.

Insider Transactions at Applied Optoelectronics

In related news, Director William H. Yeh sold 10,000 shares of the company’s stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $43.08, for a total transaction of $430,800.00. Following the sale, the director now owns 223,538 shares of the company’s stock, valued at $9,630,017.04. This represents a 4.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Stefan J. Murry sold 5,000 shares of Applied Optoelectronics stock in a transaction on Wednesday, November 20th. The stock was sold at an average price of $31.56, for a total transaction of $157,800.00. Following the completion of the transaction, the chief financial officer now directly owns 216,129 shares of the company’s stock, valued at $6,821,031.24. The trade was a 2.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 100,769 shares of company stock valued at $3,432,417. 5.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AAOI. AQR Capital Management LLC lifted its stake in Applied Optoelectronics by 90.7% in the second quarter. AQR Capital Management LLC now owns 75,981 shares of the semiconductor company’s stock worth $630,000 after purchasing an additional 36,138 shares during the last quarter. XTX Topco Ltd purchased a new position in Applied Optoelectronics during the 3rd quarter valued at $1,109,000. Harbor Capital Advisors Inc. bought a new position in Applied Optoelectronics in the 3rd quarter valued at $1,319,000. Westfield Capital Management Co. LP bought a new position in Applied Optoelectronics in the 3rd quarter valued at $19,019,000. Finally, Virtu Financial LLC purchased a new stake in Applied Optoelectronics in the third quarter worth $353,000. 61.72% of the stock is currently owned by hedge funds and other institutional investors.

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.