Advanced Energy Industries (NASDAQ:AEIS) Shares Gap Down - Should You 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.

Shares of Advanced Energy Industries, Inc. (NASDAQ:AEIS - Get Free Report) 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 changing hands.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Wall Street Zen raised shares of Advanced Energy Industries from a "buy" rating to a "strong-buy" rating in a report on Friday, June 27th. TD Cowen boosted their price objective on Advanced Energy Industries from $118.00 to $140.00 and gave the company a "hold" rating in a research report on Wednesday. Benchmark increased their target price on Advanced Energy Industries from $130.00 to $150.00 and gave the stock a "buy" rating in a research report on Wednesday. Citigroup raised their target price on Advanced Energy Industries from $138.00 to $140.00 and gave the company a "buy" rating in a research note on Monday, May 5th. Finally, KeyCorp upped their price target on shares of Advanced Energy Industries from $150.00 to $160.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 15th. Three equities research analysts have rated the stock with a hold rating, seven have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, Advanced Energy Industries presently has a consensus rating of "Moderate Buy" and a consensus target price of $138.90.

Advanced Energy Industries Price Performance

The company has a debt-to-equity ratio of 0.46, a current ratio of 4.43 and a quick ratio of 3.28. The stock's fifty day simple moving average is $132.92 and its 200-day simple moving average is $116.41. The company has a market capitalization of $5.29 billion, a P/E ratio of 72.58, a PEG ratio of 1.29 and a beta of 1.52.

Advanced Energy Industries (NASDAQ:AEIS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The electronics maker reported $1.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.22. The firm had revenue of $441.50 million for the quarter, compared to analyst estimates of $421.32 million. Advanced Energy Industries had a return on equity of 10.70% and a net margin of 4.73%. The company's quarterly revenue was up 21.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.85 earnings per share. On average, equities analysts forecast that Advanced Energy Industries, Inc. will post 3.66 earnings per share for the current fiscal year.

Advanced Energy Industries Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 5th. Shareholders of record on Monday, August 25th will be issued a dividend of $0.10 per share. The ex-dividend date of this dividend is Monday, August 25th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.3%. Advanced Energy Industries's dividend payout ratio (DPR) is presently 20.62%.

Insider Transactions at Advanced Energy Industries

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

Institutional Investors Weigh In On Advanced Energy Industries

A number of institutional investors have recently made changes to their positions in AEIS. The Manufacturers Life Insurance Company raised its position in shares of 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 valued at $89,565,000 after acquiring an additional 138,814 shares during the period. Summit Partners Public Asset Management LLC acquired a new stake in shares of Advanced Energy Industries during the fourth quarter worth about $71,494,000. Silvercrest Asset Management Group LLC acquired a new position in shares of Advanced Energy Industries in the 4th quarter valued at approximately $58,393,000. Principal Financial Group Inc. boosted its holdings in shares of Advanced Energy Industries by 0.3% in the first quarter. Principal Financial Group Inc. now owns 477,296 shares of the electronics maker's stock valued at $45,491,000 after buying an additional 1,624 shares during the period. Finally, Charles Schwab Investment Management Inc. lifted its position in Advanced Energy Industries by 1.1% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 465,162 shares of the electronics maker's stock valued at $44,335,000 after acquiring an additional 5,041 shares in the last quarter. 99.67% of the stock is owned by institutional investors and hedge funds.

About Advanced Energy Industries

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.

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