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

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares gapped down prior to trading on Thursday . The stock had previously closed at $17.30, but opened at $16.91. Applied Optoelectronics shares last traded at $15.90, with a volume of 573,587 shares changing hands.

Analyst Ratings Changes

AAOI has been the subject of several recent analyst reports. Raymond James raised their target price on Applied Optoelectronics to $31.00 and gave the stock a “buy” rating in a research note on Friday, February 28th. StockNews.com raised Applied Optoelectronics to a “sell” rating in a research report on Wednesday, February 26th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $44.00 target price on shares of Applied Optoelectronics in a research report on Monday, February 24th. Northland Securities reiterated an “outperform” rating and set a $40.00 price target (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. Finally, B. Riley raised 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. One research 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’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $27.40.

Applied Optoelectronics Stock Down 7.4 %

The company has a market capitalization of $795.66 million, a PE ratio of -7.79 and a beta of 2.36. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36. The business has a fifty day moving average of $26.86 and a 200 day moving average of $24.56.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Wednesday, February 26th. The semiconductor company reported ($0.09) EPS 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 during the quarter, compared to analysts’ expectations of $99.92 million. Equities research analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Insider Transactions at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction dated Thursday, January 16th. The stock was sold at an average price of $31.72, for a total value of $126,880.00. Following the completion of the transaction, the chief financial officer now owns 212,129 shares in the company, valued at approximately $6,728,731.88. This trade represents a 1.85 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Richard B. Black sold 10,000 shares of the business’s stock in a transaction dated 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 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. Over the last 90 days, insiders have sold 26,298 shares of company stock valued at $850,401. 5.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Large investors have recently modified their holdings of the company. Westfield Capital Management Co. LP acquired a new stake in Applied Optoelectronics during the 3rd quarter worth $19,019,000. Whale Rock Capital Management LLC acquired a new stake in shares of Applied Optoelectronics during the third quarter worth about $16,145,000. Nomura Holdings Inc. purchased a new stake in shares of Applied Optoelectronics in the 4th quarter valued at about $31,331,000. Yong Rong HK Asset Management Ltd acquired a new stake in shares of Applied Optoelectronics in the 4th quarter valued at about $27,645,000. Finally, Jefferies Financial Group Inc. purchased a new position in Applied Optoelectronics during the 4th quarter worth approximately $23,354,000. 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.