Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down Following Weak Earnings

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $25.19, but opened at $24.00. Applied Optoelectronics shares last traded at $23.04, with a volume of 1,989,716 shares.

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 return on equity of 22.36% and a negative net margin of 38.61%. The firm had revenue of $100.27 million for the quarter, compared to the consensus estimate of $99.92 million.

Wall Street Analyst Weigh In

A number of brokerages recently commented on AAOI. B. Riley cut shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price target on the stock. in a research note on Tuesday, December 10th. Rosenblatt Securities restated a “buy” rating and set a $44.00 target price on shares of Applied Optoelectronics in a research report on Monday. StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a research note on Wednesday. Northland Securities restated an “outperform” rating and issued a $40.00 target price (up previously from $25.00) on shares of Applied Optoelectronics in a research note on Wednesday, December 18th. Finally, Raymond James upped their price target on Applied Optoelectronics from $17.00 to $39.00 and gave the company an “outperform” rating in a research report on Friday, December 20th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $29.20.

Insider Activity at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 2,298 shares of the company’s 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 in the company, valued at approximately $7,379,756.27. The trade was a 1.08 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director William H. Yeh sold 10,000 shares of the stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $43.08, for a total value of $430,800.00. Following the completion of the transaction, the director now directly owns 223,538 shares in the company, valued at approximately $9,630,017.04. This represents a 4.28 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 36,298 shares of company stock valued at $1,281,201 over the last three months. 5.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of AAOI. GF Fund Management CO. LTD. bought a new stake in Applied Optoelectronics in the 4th quarter worth approximately $5,068,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in Applied Optoelectronics by 17.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 78,959 shares of the semiconductor company’s stock worth $2,910,000 after purchasing an additional 11,684 shares during the period. Voloridge Investment Management LLC bought a new stake in shares of Applied Optoelectronics in the 4th quarter valued at about $13,035,000. Two Sigma Advisers LP boosted its holdings in Applied Optoelectronics by 265.8% during the 4th quarter. Two Sigma Advisers LP now owns 57,800 shares of the semiconductor company’s stock valued at $2,131,000 after acquiring an additional 42,000 shares during the period. Finally, Two Sigma Investments LP increased its stake in Applied Optoelectronics by 10.5% in the 4th quarter. Two Sigma Investments LP now owns 588,469 shares of the semiconductor company’s stock worth $21,691,000 after purchasing an additional 55,863 shares during the period. 61.72% of the stock is currently owned by hedge funds and other institutional investors.

Applied Optoelectronics Stock Performance

The company has a debt-to-equity ratio of 0.36, a current ratio of 1.61 and a quick ratio of 1.06. The stock has a market cap of $1.13 billion, a PE ratio of -11.67 and a beta of 2.36. The business has a 50 day moving average price of $30.65 and a two-hundred day moving average price of $23.92.

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.