Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 19.1% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded down 19.1% during mid-day trading on Thursday . The stock traded as low as $13.30 and last traded at $12.91. 4,089,600 shares traded hands during trading, an increase of 37% from the average session volume of 2,986,628 shares. The stock had previously closed at $15.96.

Analysts Set New Price Targets

A number of research firms recently weighed in on AAOI. Raymond James increased their price objective on shares of Applied Optoelectronics to $31.00 and gave the stock a “buy” rating in a report on Friday, February 28th. B. Riley upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price target on the stock in a research note on Friday, March 7th. Rosenblatt Securities reaffirmed a “buy” rating and set a $36.00 price target on shares of Applied Optoelectronics in a report on Friday, March 14th. StockNews.com raised Applied Optoelectronics to a “sell” rating in a report on Wednesday, February 26th. Finally, Northland Securities restated an “outperform” rating and issued a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. One equities research 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. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $25.80.

Applied Optoelectronics Stock Down 19.6 %

The firm has a market cap of $639.59 million, a price-to-earnings ratio of -6.23 and a beta of 2.36. The stock’s 50 day moving average is $22.96 and its 200 day moving average is $25.32. 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 for the quarter, missing the consensus estimate of ($0.02) by ($0.07). Applied Optoelectronics had a negative net margin of 38.61% and a negative return on equity of 22.36%. The business had revenue of $100.27 million for the quarter, compared to the consensus estimate of $99.92 million. Analysts forecast that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Insiders Place Their Bets

In related news, Director Richard B. Black sold 10,000 shares of the stock in a transaction that occurred 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 owns 157,813 shares in the company, valued at approximately $4,576,577. This represents a 5.96 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Stefan J. Murry sold 2,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, March 17th. The shares were sold at an average price of $23.06, for a total transaction of $46,120.00. Following the completion of the sale, the chief financial officer now owns 196,581 shares of the company’s stock, valued at $4,533,157.86. This trade represents a 1.01 % 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 worth $543,821. 4.96% of the stock is currently owned by company insiders.

Institutional Trading of Applied Optoelectronics

A number of institutional investors and hedge funds have recently modified their holdings of AAOI. Meeder Asset Management Inc. bought a new position in Applied Optoelectronics during the fourth quarter valued at about $38,000. Sterling Capital Management LLC lifted its position in Applied Optoelectronics by 858.2% in the fourth 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 during the period. Canada Pension Plan Investment Board acquired a new stake in Applied Optoelectronics during the fourth quarter worth $63,000. Pingora Partners LLC bought a new stake in Applied Optoelectronics in the 3rd quarter valued at $82,000. Finally, FMR LLC raised its position 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 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.