Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up – Should You Buy?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped up prior to trading on Monday . The stock had previously closed at $17.86, but opened at $18.50. Applied Optoelectronics shares last traded at $18.37, with a volume of 973,255 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on AAOI shares. StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a research note on Thursday, October 3rd. Raymond James upgraded Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $17.00 price target for the company in a research report on Tuesday, September 3rd. B. Riley lowered their price objective on Applied Optoelectronics from $12.00 to $9.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 7th. Rosenblatt Securities reissued a “buy” rating and issued a $20.00 target price on shares of Applied Optoelectronics in a report on Wednesday, October 9th. Finally, B. Riley Financial reiterated a “neutral” rating and issued a $9.00 price target on shares of Applied Optoelectronics in a research report on Thursday, August 8th. One research analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $13.75.

Applied Optoelectronics Trading Up 5.4 %

The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.97 and a current ratio of 1.64. The company has a market capitalization of $732.64 million, a PE ratio of -10.35 and a beta of 1.96. The stock has a fifty day moving average of $11.93 and a 200 day moving average of $11.02.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Tuesday, August 6th. The semiconductor company reported ($0.28) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.29) by $0.01. The firm had revenue of $43.27 million during the quarter, compared to analyst estimates of $44.14 million. Applied Optoelectronics had a negative net margin of 34.84% and a negative return on equity of 19.82%. Applied Optoelectronics’s revenue for the quarter was up 4.0% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.31) earnings per share. As a group, sell-side analysts predict that Applied Optoelectronics, Inc. will post -1.08 earnings per share for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In related news, insider David C. Kuo sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 24th. The stock was sold at an average price of $15.02, for a total transaction of $150,200.00. Following the completion of the transaction, the insider now directly owns 132,921 shares of the company’s stock, valued at approximately $1,996,473.42. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Several institutional investors have recently bought and sold shares of AAOI. Vanguard Group Inc. raised its position in shares of Applied Optoelectronics by 29.2% during the 1st quarter. Vanguard Group Inc. now owns 1,954,498 shares of the semiconductor company’s stock valued at $27,089,000 after buying an additional 442,277 shares in the last quarter. Hood River Capital Management LLC raised its position in Applied Optoelectronics by 6.5% during the first quarter. Hood River Capital Management LLC now owns 1,439,404 shares of the semiconductor company’s stock valued at $19,950,000 after purchasing an additional 88,281 shares during the period. Whale Rock Capital Management LLC lifted its stake in shares of Applied Optoelectronics by 30.0% in the 1st quarter. Whale Rock Capital Management LLC now owns 1,333,957 shares of the semiconductor company’s stock valued at $18,489,000 after purchasing an additional 308,172 shares during the last quarter. Shellback Capital LP purchased a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $8,617,000. Finally, Goldman Sachs Group Inc. increased its position in shares of Applied Optoelectronics by 9,687.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 853,948 shares of the semiconductor company’s stock valued at $16,498,000 after purchasing an additional 845,223 shares during the last quarter. Institutional investors own 61.72% of the company’s stock.

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.