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 trading hands.

The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 business had revenue of $100.27 million for the quarter, compared to analysts’ expectations of $99.92 million.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on AAOI shares. Raymond James upped their price objective on shares of Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a report on Friday. Northland Securities reissued an “outperform” rating and issued a $40.00 price objective (up previously from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. StockNews.com raised shares of Applied Optoelectronics to a “sell” rating in a report on Wednesday. B. Riley lowered shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price objective for the company. in a report on Tuesday, December 10th. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $44.00 price objective on shares of Applied Optoelectronics in a report on Monday, February 24th. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat, Applied Optoelectronics presently has an average rating of “Hold” and an average price target of $27.60.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, Director William H. Yeh sold 10,000 shares of the company’s stock in a transaction dated Tuesday, December 3rd. The shares were sold at an average price of $43.08, for a total value of $430,800.00. Following the transaction, the director now owns 223,538 shares of the company’s stock, valued at $9,630,017.04. This represents a 4.28 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Stefan J. Murry sold 2,298 shares of the company’s stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total transaction 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 $7,379,756.27. The trade was a 1.08 % 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 90 days. 5.40% of the stock is owned by insiders.

Institutional Trading of Applied Optoelectronics

Several hedge funds have recently made changes to their positions in AAOI. Meeder Asset Management Inc. acquired a new stake in shares of Applied Optoelectronics during the fourth quarter worth about $38,000. Sterling Capital Management LLC lifted its position in shares of Applied Optoelectronics by 858.2% during the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 1,150 shares in the last quarter. Canada Pension Plan Investment Board acquired a new stake in shares of Applied Optoelectronics during the fourth quarter worth about $63,000. Pingora Partners LLC acquired a new stake in shares of Applied Optoelectronics during the third quarter worth about $82,000. Finally, FMR LLC lifted its position in shares of 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 in the last quarter. Institutional investors and hedge funds own 61.72% of the company’s stock.

Applied Optoelectronics Price Performance

The firm has a market cap of $1.02 billion, a price-to-earnings ratio of -10.61 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 company’s 50-day moving average price is $30.33 and its 200-day moving average price is $24.02.

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.