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

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares gapped down prior to trading 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 trading hands.

Analysts Set New Price Targets

Several analysts recently issued reports on the stock. 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. Northland Securities reiterated an “outperform” rating and set a $40.00 target price (up previously from $25.00) on shares of Applied Optoelectronics in a research note on Wednesday, December 18th. Raymond James boosted 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. Rosenblatt Securities reiterated a “buy” rating and set a $36.00 target price on shares of Applied Optoelectronics in a research note on Friday. Finally, StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research note on Wednesday, February 26th. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $25.80.

Applied Optoelectronics Stock Up 39.3 %

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 stock has a market cap of $1.10 billion, a P/E ratio of -10.73 and a beta of 2.36. The stock’s 50-day moving average is $26.47 and its 200-day moving average is $24.50.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings results on Wednesday, February 26th. The semiconductor company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates 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 business had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million. As a group, research analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Richard B. Black sold 10,000 shares of the stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $29.00, for a total value of $290,000.00. Following the transaction, the director now owns 157,813 shares in the company, valued at approximately $4,576,577. This represents a 5.96 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Stefan J. Murry sold 4,000 shares of the stock in a transaction that occurred on Thursday, January 16th. The stock was sold at an average price of $31.72, for a total value of $126,880.00. Following the completion of the transaction, the chief financial officer now owns 212,129 shares in the company, valued at $6,728,731.88. This represents a 1.85 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 26,298 shares of company stock worth $850,401 in the last 90 days. Company insiders own 5.40% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Hedge funds have recently modified their holdings of the business. Meeder Asset Management Inc. bought a new stake in shares of Applied Optoelectronics in the fourth quarter valued at approximately $38,000. Sterling Capital Management LLC lifted its position in Applied Optoelectronics by 858.2% in the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 1,150 shares during the period. Canada Pension Plan Investment Board bought a new position in Applied Optoelectronics in the fourth quarter worth $63,000. Pingora Partners LLC bought a new position in Applied Optoelectronics in the third quarter worth $82,000. Finally, FMR LLC lifted its position in Applied Optoelectronics by 3,290.6% in 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 period. 61.72% of the stock is owned by 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.