Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 6.9% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price traded up 6.9% during mid-day trading on Wednesday . The company traded as high as $28.51 and last traded at $29.00. 678,734 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 2,949,168 shares. The stock had previously closed at $27.12.

Analyst Upgrades and Downgrades

AAOI has been the subject of several recent research reports. StockNews.com raised Applied Optoelectronics to a “sell” rating in a research note on Friday, January 31st. B. Riley cut shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price target for the company. in a research report on Tuesday, December 10th. Rosenblatt Securities lifted their target price on Applied Optoelectronics from $27.50 to $44.00 and gave the company a “buy” rating in a research report on Friday, December 13th. Northland Securities reissued an “outperform” rating and set a $40.00 price objective (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. Finally, Raymond James upped their target price 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 analysts have rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $29.20.

Applied Optoelectronics Price Performance

The company has a 50 day moving average of $33.87 and a 200-day moving average of $21.91. The company has a quick ratio of 1.06, a current ratio of 1.61 and a debt-to-equity ratio of 0.36. The stock has a market capitalization of $1.34 billion, a P/E ratio of -13.86 and a beta of 2.36.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 2,298 shares of the firm’s stock in a transaction dated Tuesday, January 21st. The stock was sold at an average price of $35.17, for a total transaction of $80,820.66. Following the completion of the sale, the chief financial officer now directly owns 209,831 shares in the company, valued at approximately $7,379,756.27. This trade represents a 1.08 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider David C. Kuo sold 10,000 shares of the stock in a transaction that occurred on Friday, November 8th. The stock was sold at an average price of $26.93, for a total transaction of $269,300.00. Following the completion of the sale, the insider now directly owns 118,122 shares of the company’s stock, valued at $3,181,025.46. This trade represents a 7.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 103,067 shares of company stock valued at $3,513,238. 5.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Westfield Capital Management Co. LP purchased a new position in shares of Applied Optoelectronics during the 3rd quarter valued at $19,019,000. Whale Rock Capital Management LLC acquired a new stake in Applied Optoelectronics during the third quarter valued at $16,145,000. Yong Rong HK Asset Management Ltd purchased a new position in Applied Optoelectronics in the fourth quarter valued at about $27,645,000. Royce & Associates LP grew its stake in Applied Optoelectronics by 47.7% in the third quarter. Royce & Associates LP now owns 1,596,545 shares of the semiconductor company’s stock valued at $22,847,000 after purchasing an additional 515,489 shares in the last quarter. Finally, JAT Capital Mgmt LP acquired a new position in Applied Optoelectronics in the 3rd quarter worth about $6,470,000. 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.