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

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $25.83, but opened at $24.00. Applied Optoelectronics shares last traded at $25.75, with a volume of 1,550,005 shares trading hands.

Wall Street Analysts Forecast Growth

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

Applied Optoelectronics Price Performance

The company has a 50 day moving average price of $33.71 and a 200-day moving average price of $21.96. 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 company has a market cap of $1.37 billion, a price-to-earnings ratio of -14.19 and a beta of 2.36.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, insider Hung-Lun (Fred) Chang sold 20,323 shares of the stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $30.35, for a total transaction of $616,803.05. Following the transaction, the insider now directly owns 195,572 shares in the company, valued at approximately $5,935,610.20. This represents a 9.41 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 value of $269,300.00. Following the transaction, the insider now owns 118,122 shares in the company, valued at $3,181,025.46. The trade was a 7.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 103,067 shares of company stock worth $3,513,238 over the last ninety days. Insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of institutional investors and hedge funds have recently modified their holdings of AAOI. Pingora Partners LLC bought a new position in shares of Applied Optoelectronics during the 3rd quarter worth approximately $82,000. FMR LLC raised its position 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. The Manufacturers Life Insurance Company acquired a new position in shares of Applied Optoelectronics during the second quarter worth approximately $118,000. Oppenheimer & Co. Inc. acquired a new position in shares of Applied Optoelectronics during the third quarter worth approximately $186,000. Finally, Sei Investments Co. acquired a new position in shares of Applied Optoelectronics during the second quarter worth approximately $194,000. 61.72% of the stock is currently 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.