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

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares gapped down prior to trading on Wednesday . The stock had previously closed at $11.45, but opened at $10.82. Applied Optoelectronics shares last traded at $10.88, with a volume of 545,005 shares trading hands.

Analysts Set New Price Targets

AAOI has been the subject of a number of recent analyst reports. Rosenblatt Securities reissued a “buy” rating and set a $36.00 price target on shares of Applied Optoelectronics in a research report on Friday, March 14th. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research note on Wednesday, February 26th. B. Riley upgraded Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price objective on the stock in a research note on Friday, March 7th. Finally, Raymond James dropped their price target on Applied Optoelectronics from $31.00 to $20.00 and set an “outperform” rating on the stock in a research report on Monday. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and a consensus target price of $23.60.

Applied Optoelectronics Stock Performance

The firm has a market cap of $531.41 million, a price-to-earnings ratio of -5.17 and a beta of 2.57. The stock’s fifty day moving average is $18.61 and its two-hundred day moving average is $24.93. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.06 and a current ratio of 1.61.

Applied Optoelectronics (NASDAQ:AAOI) last released 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 for the quarter, compared to the consensus estimate of $99.92 million. On average, analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 2,298 shares of the company’s stock in a transaction on Tuesday, January 21st. The stock was sold at an average price of $35.17, for a total value of $80,820.66. Following the transaction, the chief financial officer now owns 209,831 shares of the company’s stock, valued at approximately $7,379,756.27. This represents a 1.08 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 4.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Hedge funds have recently modified their holdings of the stock. Meeder Asset Management Inc. acquired a new position in shares of Applied Optoelectronics in the fourth quarter worth about $38,000. Sterling Capital Management LLC grew its holdings in shares of Applied Optoelectronics by 858.2% during the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock valued at $47,000 after buying an additional 1,150 shares in the last quarter. Canada Pension Plan Investment Board acquired a new stake in Applied Optoelectronics during the 4th quarter worth about $63,000. FMR LLC boosted its holdings in shares of 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 period. Finally, Summit Investment Advisors Inc. grew its position in Applied Optoelectronics by 17.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 637 shares in the last quarter. 61.72% of the stock is 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.