Applied Optoelectronics (NASDAQ:AAOI) Shares Down 13.8% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) was down 13.8% during mid-day trading on Thursday . The stock traded as low as $12.10 and last traded at $11.95. Approximately 1,796,226 shares traded hands during trading, a decline of 57% from the average daily volume of 4,195,448 shares. The stock had previously closed at $13.87.

Analysts Set New Price Targets

Several brokerages have recently weighed in on AAOI. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a report on Wednesday, February 26th. Northland Securities reaffirmed an “outperform” rating and set a $40.00 price target (up from $25.00) on shares of Applied Optoelectronics in a research note on Wednesday, December 18th. Rosenblatt Securities reissued a “buy” rating and issued a $36.00 price objective on shares of Applied Optoelectronics in a research note on Friday, March 14th. B. Riley raised Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 target price on the stock in a research report on Friday, March 7th. Finally, Raymond James lifted their price target on shares of Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a research report on Friday, February 28th. One analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $25.80.

Applied Optoelectronics Stock Performance

The company has a 50-day moving average of $20.10 and a 200-day moving average of $25.10. The company has a market cap of $562.32 million, a PE ratio of -5.48 and a beta of 2.57. The company has a quick ratio of 1.06, a current ratio of 1.61 and a debt-to-equity ratio of 0.36.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Wednesday, February 26th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.07). The firm had revenue of $100.27 million for the quarter, compared to analysts’ expectations of $99.92 million. Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%. As a group, analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Stefan J. Murry sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $23.06, for a total value of $46,120.00. Following the transaction, the chief financial officer now owns 196,581 shares in the company, valued at $4,533,157.86. The trade was a 1.01 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Richard B. Black sold 10,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total value of $290,000.00. Following the completion of the transaction, the director now directly owns 157,813 shares of the company’s stock, valued at approximately $4,576,577. This represents a 5.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 18,298 shares of company stock valued at $543,821. Corporate insiders own 4.96% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Large investors have recently made changes to their positions in the business. Charles Schwab Investment Management Inc. grew its position in Applied Optoelectronics by 2.9% during the third quarter. Charles Schwab Investment Management Inc. now owns 108,814 shares of the semiconductor company’s stock valued at $1,557,000 after buying an additional 3,081 shares during the period. The Manufacturers Life Insurance Company increased its stake in shares of Applied Optoelectronics by 3.4% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 14,667 shares of the semiconductor company’s stock worth $210,000 after purchasing an additional 483 shares during the last quarter. FMR LLC raised its holdings in shares of Applied Optoelectronics by 3,290.6% in the 3rd 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. State Street Corp lifted its stake in Applied Optoelectronics by 27.7% in the third quarter. State Street Corp now owns 887,259 shares of the semiconductor company’s stock valued at $12,697,000 after purchasing an additional 192,308 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new position in Applied Optoelectronics during the third quarter valued at $340,000. 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.