Applied Optoelectronics (NASDAQ:AAOI) Trading Up 14.3% – Time to Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price rose 14.3% on Tuesday . The company traded as high as $12.75 and last traded at $12.84. Approximately 1,068,778 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 4,101,324 shares. The stock had previously closed at $11.23.

Analyst Ratings Changes

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

Applied Optoelectronics Stock Performance

The firm’s fifty day moving average is $21.90 and its 200 day moving average is $25.36. The company has a market cap of $543.23 million, a PE ratio of -5.24 and a beta of 2.57. The company has a current ratio of 1.61, a quick ratio of 1.06 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 the consensus estimate of ($0.02) by ($0.07). The firm had revenue of $100.27 million during 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%. As a group, research analysts predict that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Stefan J. Murry sold 4,000 shares of the company’s stock in a transaction dated Thursday, January 16th. The shares were sold at an average price of $31.72, for a total value of $126,880.00. Following the completion of the sale, the chief financial officer now owns 212,129 shares of the company’s stock, valued at approximately $6,728,731.88. This represents a 1.85 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 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 owns 157,813 shares in the company, valued at $4,576,577. This represents a 5.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 18,298 shares of company stock valued at $543,821 in the last 90 days. 4.96% of the stock is owned by insiders.

Institutional Trading of Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of the business. GAMMA Investing LLC raised its stake in shares of Applied Optoelectronics by 9,789.9% in the 1st quarter. GAMMA Investing LLC now owns 14,736 shares of the semiconductor company’s stock valued at $2,260,000 after acquiring an additional 14,587 shares during the period. California State Teachers Retirement System boosted its position in shares of Applied Optoelectronics by 4.4% during the fourth quarter. California State Teachers Retirement System now owns 36,471 shares of the semiconductor company’s stock worth $1,344,000 after buying an additional 1,524 shares during the period. GF Fund Management CO. LTD. acquired a new stake in shares of Applied Optoelectronics in the fourth quarter valued at $5,068,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Applied Optoelectronics by 17.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 78,959 shares of the semiconductor company’s stock valued at $2,910,000 after buying an additional 11,684 shares during the period. Finally, Voloridge Investment Management LLC acquired a new position in Applied Optoelectronics during the 4th quarter worth about $13,035,000. 61.72% of the stock is owned by institutional investors and hedge funds.

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.