Applied Optoelectronics (NASDAQ:AAOI) Trading Up 7.9% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price traded up 7.9% during mid-day trading on Monday . The stock traded as high as $22.29 and last traded at $22.04. Approximately 1,042,911 shares traded hands during mid-day trading, a decline of 75% from the average session volume of 4,114,351 shares. The stock had previously closed at $20.43.

Analyst Ratings Changes

A number of equities analysts have weighed in on AAOI shares. Raymond James boosted their price target on Applied Optoelectronics to $31.00 and gave the stock a “buy” rating in a research report on Friday, February 28th. StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a research note on Wednesday, February 26th. Northland Securities reiterated an “outperform” rating and issued a $40.00 price objective (up from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Rosenblatt Securities restated a “buy” rating and set a $36.00 price objective on shares of Applied Optoelectronics in a research report on Friday, March 14th. Finally, B. Riley raised Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price target for the company in a report on Friday, March 7th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $25.80.

Applied Optoelectronics Stock Down 2.3 %

The firm has a market cap of $1.09 billion, a price-to-earnings ratio of -10.57 and a beta of 2.36. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.61 and a quick ratio of 1.06. The stock has a 50-day moving average of $24.71 and a 200-day moving average of $25.27.

Applied Optoelectronics (NASDAQ:AAOI) last released its earnings results on Wednesday, February 26th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.07). The company had revenue of $100.27 million for the quarter, compared to analyst estimates of $99.92 million. Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%. Sell-side analysts predict that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Buying and Selling

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 4,000 shares of the firm’s stock in a transaction 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 sale, the chief financial officer now owns 212,129 shares of the company’s stock, valued at approximately $6,728,731.88. This trade represents a 1.85 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Richard B. Black sold 10,000 shares of the business’s stock in a transaction 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 directly owns 157,813 shares of the company’s stock, valued at $4,576,577. This trade represents a 5.96 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 18,298 shares of company stock worth $543,821. Corporate insiders own 4.96% of the company’s stock.

Institutional Trading of Applied Optoelectronics

Several hedge funds and other institutional investors have recently made changes to their positions in AAOI. Meeder Asset Management Inc. acquired a new stake in Applied Optoelectronics during the 4th quarter worth approximately $38,000. Sterling Capital Management LLC lifted its stake in shares of Applied Optoelectronics by 858.2% in the 4th quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock valued at $47,000 after purchasing an additional 1,150 shares during the period. Canada Pension Plan Investment Board bought a new stake in shares of Applied Optoelectronics during the 4th quarter valued at about $63,000. Pingora Partners LLC acquired a new stake in Applied Optoelectronics during the third quarter worth approximately $82,000. Finally, FMR LLC increased its holdings 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 in the last quarter. 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.