Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 8.6% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares shot up 8.6% during mid-day trading on Wednesday . The stock traded as high as $16.89 and last traded at $16.36. 882,117 shares traded hands during trading, a decline of 76% from the average session volume of 3,711,587 shares. The stock had previously closed at $15.07.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Raymond James raised their target price on shares of Applied Optoelectronics to $31.00 and gave the stock a “buy” rating in a research report on Friday, February 28th. B. Riley raised Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 price objective for the company in a research report on Friday, March 7th. Northland Securities reiterated an “outperform” rating and set a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. Rosenblatt Securities reissued a “buy” rating and issued a $36.00 price target on shares of Applied Optoelectronics in a research note on Friday. Finally, StockNews.com raised shares of Applied Optoelectronics to a “sell” rating in a research note on Wednesday, February 26th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $25.80.

Applied Optoelectronics Stock Down 8.3 %

The stock has a market cap of $787.96 million, a price-to-earnings ratio of -7.70 and a beta of 2.36. 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 has a fifty day moving average of $26.86 and a two-hundred day moving average of $24.56.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly 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). 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. As a group, analysts predict that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Activity at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 2,298 shares of Applied Optoelectronics stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total transaction of $80,820.66. Following the sale, the chief financial officer now owns 209,831 shares in the company, valued at $7,379,756.27. This trade represents a 1.08 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Richard B. Black sold 10,000 shares of the company’s stock in a transaction on Monday, December 16th. The shares were sold at an average price of $35.27, for a total transaction of $352,700.00. Following the completion of the transaction, the director now owns 167,813 shares of the company’s stock, valued at $5,918,764.51. This trade represents a 5.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 26,298 shares of company stock worth $850,401. 5.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of institutional investors have recently added to or reduced their stakes in the company. Meeder Asset Management Inc. acquired a new stake in shares of Applied Optoelectronics during the fourth quarter valued at about $38,000. Sterling Capital Management LLC boosted its holdings 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 valued at $47,000 after purchasing an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board acquired a new stake in Applied Optoelectronics during the 4th quarter valued at approximately $63,000. Pingora Partners LLC purchased a new stake in Applied Optoelectronics during the 3rd quarter worth approximately $82,000. Finally, FMR LLC raised its position in shares of Applied Optoelectronics by 3,290.6% in the 3rd quarter. FMR LLC now owns 6,137 shares of the semiconductor company’s stock valued at $88,000 after purchasing an additional 5,956 shares in the last quarter. 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.