Applied Optoelectronics (NASDAQ:AAOI) Trading Down 9.9% – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) traded down 9.9% during mid-day trading on Monday . The company traded as low as $14.36 and last traded at $14.26. 942,632 shares were traded during mid-day trading, a decline of 75% from the average session volume of 3,731,749 shares. The stock had previously closed at $15.82.

Analyst Upgrades and Downgrades

AAOI has been the topic of several recent research reports. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research report on Wednesday, February 26th. Northland Securities restated 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 reaffirmed a “buy” rating and set a $44.00 target price on shares of Applied Optoelectronics in a research report on Monday, February 24th. B. Riley upgraded Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price target on the stock in a research report on Friday. Finally, Raymond James increased their price target on Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a research note on Friday, February 28th. One analyst has rated the stock with a sell rating, two have given a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $27.40.

Applied Optoelectronics Stock Down 10.7 %

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’s 50-day simple moving average is $28.13 and its 200 day simple moving average is $24.54. The firm has a market cap of $701.77 million, a P/E ratio of -6.86 and a beta of 2.36.

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

Insider Activity

In other news, CFO Stefan J. Murry sold 2,298 shares of the stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total transaction of $80,820.66. Following the transaction, the chief financial officer now owns 209,831 shares of the company’s stock, valued at $7,379,756.27. This represents a 1.08 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total transaction of $290,000.00. Following the completion of the sale, the director now directly owns 157,813 shares of the company’s stock, valued at approximately $4,576,577. The trade was a 5.96 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 26,298 shares of company stock worth $850,401 in the last quarter. 5.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Meeder Asset Management Inc. bought a new stake in shares of Applied Optoelectronics during the fourth quarter worth about $38,000. Sterling Capital Management LLC increased its holdings in Applied Optoelectronics by 858.2% during the 4th quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 1,150 shares in the last quarter. Canada Pension Plan Investment Board purchased a new stake in shares of Applied Optoelectronics in the fourth quarter worth approximately $63,000. Summit Investment Advisors Inc. lifted its holdings in shares of Applied Optoelectronics by 17.6% in 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. Finally, Pingora Partners LLC purchased a new position in shares of Applied Optoelectronics during the third quarter valued at approximately $82,000. Institutional investors and hedge funds own 61.72% of the company’s stock.

Applied Optoelectronics Company Profile

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.