Advanced Energy Industries (NASDAQ:AEIS) Shares Gap Down - Time to Sell?

Key Points

• Advanced Energy Industries experienced a significant drop in share price, opening at $128.40 after a previous close of $139.58, and last trading at $135.80.
• Analyst ratings for the company are generally positive, with multiple upgrades, including a consensus rating of "Moderate Buy" and a target price of $138.90.
• The company reported a 21% increase in quarterly revenue year-over-year, with earnings per share surpassing the consensus estimate by $0.22.

Advanced Energy Industries, Inc. (NASDAQ:AEIS - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $139.58, but opened at $128.40. Advanced Energy Industries shares last traded at $135.80, with a volume of 165,945 shares trading hands.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on AEIS shares. Robert W. Baird upped their price objective on shares of Advanced Energy Industries from $124.00 to $132.00 and gave the stock an "outperform" rating in a research report on Thursday, May 1st. TD Cowen lifted their price objective on shares of Advanced Energy Industries from $118.00 to $140.00 and gave the company a "hold" rating in a research note on Wednesday. Citigroup raised their price target on Advanced Energy Industries from $138.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, May 5th. Benchmark upped their target price on shares of Advanced Energy Industries from $130.00 to $150.00 and gave the stock a "buy" rating in a report on Wednesday. Finally, Wall Street Zen upgraded Advanced Energy Industries from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Three investment analysts have rated the stock with a hold rating, seven have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $138.90.

Advanced Energy Industries Stock Performance

The company has a market cap of $5.69 billion, a P/E ratio of 68.24, a price-to-earnings-growth ratio of 1.29 and a beta of 1.52. The company has a debt-to-equity ratio of 0.45, a quick ratio of 2.97 and a current ratio of 4.09. The business has a 50 day moving average price of $134.74 and a two-hundred day moving average price of $116.78.

Advanced Energy Industries (NASDAQ:AEIS - Get Free Report) last posted its earnings results on Tuesday, August 5th. The electronics maker reported $1.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.28 by $0.22. Advanced Energy Industries had a return on equity of 12.38% and a net margin of 5.13%. The company had revenue of $441.50 million for the quarter, compared to analysts' expectations of $421.32 million. During the same period last year, the firm earned $0.85 earnings per share. Advanced Energy Industries's quarterly revenue was up 21.0% on a year-over-year basis. On average, sell-side analysts anticipate that Advanced Energy Industries, Inc. will post 3.66 earnings per share for the current year.

Advanced Energy Industries Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 5th. Stockholders of record on Monday, August 25th will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 0.3%. The ex-dividend date of this dividend is Monday, August 25th. Advanced Energy Industries's dividend payout ratio (DPR) is currently 18.10%.

Insider Activity

In related news, EVP John Donaghey sold 2,000 shares of the business's stock in a transaction dated Wednesday, July 9th. The shares were sold at an average price of $140.00, for a total transaction of $280,000.00. Following the transaction, the executive vice president owned 11,029 shares in the company, valued at $1,544,060. The trade was a 15.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Paul R. Oldham sold 1,173 shares of Advanced Energy Industries stock in a transaction that occurred on Friday, June 20th. The shares were sold at an average price of $131.29, for a total value of $154,003.17. Following the sale, the executive vice president directly owned 31,006 shares in the company, valued at approximately $4,070,777.74. The trade was a 3.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 1.20% of the company's stock.

Hedge Funds Weigh In On Advanced Energy Industries

Several institutional investors and hedge funds have recently added to or reduced their stakes in AEIS. Geode Capital Management LLC boosted its stake in Advanced Energy Industries by 1.0% during the second quarter. Geode Capital Management LLC now owns 925,648 shares of the electronics maker's stock worth $122,663,000 after acquiring an additional 8,993 shares in the last quarter. The Manufacturers Life Insurance Company raised its holdings in Advanced Energy Industries by 21.8% in the 4th quarter. The Manufacturers Life Insurance Company now owns 774,586 shares of the electronics maker's stock worth $89,565,000 after acquiring an additional 138,814 shares during the last quarter. Summit Partners Public Asset Management LLC bought a new position in Advanced Energy Industries in the 4th quarter valued at approximately $71,494,000. Silvercrest Asset Management Group LLC bought a new position in Advanced Energy Industries in the 4th quarter valued at approximately $58,393,000. Finally, Principal Financial Group Inc. boosted its stake in Advanced Energy Industries by 0.3% during the 1st quarter. Principal Financial Group Inc. now owns 477,296 shares of the electronics maker's stock valued at $45,491,000 after purchasing an additional 1,624 shares during the last quarter. Hedge funds and other institutional investors own 99.67% of the company's stock.

Advanced Energy Industries Company Profile

Advanced Energy Industries, Inc provides precision power conversion, measurement, and control solutions in the United States and internationally. The company's plasma power products offer solutions to enable innovation for semiconductor and thin film plasma processes, such as dry etch and deposition.