Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 4.2% – Time to Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) fell 4.2% during trading on Monday . The stock traded as low as $21.19 and last traded at $21.19. 4,342,390 shares changed hands during trading, an increase of 4% from the average session volume of 4,180,287 shares. The stock had previously closed at $22.11.

Analysts Set New Price Targets

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

Applied Optoelectronics Stock Down 5.4 %

The firm has a market cap of $1.04 billion, a P/E ratio of -10.24 and a beta of 2.36. The firm’s fifty day moving average is $26.15 and its 200 day moving average is $24.81. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.06 and a current ratio of 1.61.

Applied Optoelectronics (NASDAQ:AAOI) last posted its 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). The firm had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million. Applied Optoelectronics had a negative net margin of 38.61% and a negative return on equity of 22.36%. As a group, equities research analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal 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 transaction of $290,000.00. Following the sale, the director now owns 157,813 shares of the company’s stock, valued at $4,576,577. This represents a 5.96 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Stefan J. Murry sold 2,298 shares of Applied Optoelectronics stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total value of $80,820.66. Following the completion of the transaction, the chief financial officer now directly owns 209,831 shares of the company’s stock, valued at $7,379,756.27. This represents a 1.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 16,298 shares of company stock worth $497,701 in the last 90 days. Company insiders own 5.40% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

A number of large investors have recently bought and sold shares of the company. Meeder Asset Management Inc. acquired a new position in shares of Applied Optoelectronics in the 4th quarter valued at approximately $38,000. Sterling Capital Management LLC increased its stake 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 acquiring an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in Applied Optoelectronics during the fourth quarter valued at approximately $63,000. Pingora Partners LLC bought a new stake in Applied Optoelectronics during the third quarter worth $82,000. Finally, FMR LLC lifted its stake in Applied Optoelectronics by 3,290.6% during 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 during the last quarter. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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.