Alpha and Omega Semiconductor (NASDAQ:AOSL) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Alpha and Omega Semiconductor (NASDAQ:AOSL) from “hold” to “sell”, adding to a mixed but cautious analyst picture on the stock. Overall, MarketBeat data shows a consensus rating of “Hold” with a $30.50 average price target.
• The company recently beat quarterly EPS and revenue estimates, reporting a loss of ($0.28) per share versus the expected ($0.34), and revenue of $163.79 million versus $160.07 million expected. Even so, revenue was slightly down year over year and profitability remained negative.
• Insider selling has been notable, with CEO Stephen Chunping Chang and EVP Bing Xue both selling shares in April, and insiders selling 59,860 shares worth about $1.91 million over the last 90 days. Institutional investors still hold a large majority of the stock at 78.97%.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

A number of other research firms have also recently weighed in on AOSL. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. B. Riley Financial boosted their target price on shares of Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the stock a "neutral" rating in a research note on Monday, April 13th. Stifel Nicolaus decreased their target price on shares of Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating on the stock in a research note on Friday, February 6th. Zacks Research raised shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Finally, Needham & Company LLC started coverage on shares of Alpha and Omega Semiconductor in a research note on Friday, May 1st. They set a "buy" rating and a $50.00 target price on the stock. Two investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $30.50.

Alpha and Omega Semiconductor Price Performance

Shares of NASDAQ:AOSL opened at $42.01 on Friday. The company's 50 day simple moving average is $36.83 and its 200 day simple moving average is $26.66. The stock has a market capitalization of $1.26 billion, a price-to-earnings ratio of -11.80 and a beta of 2.55. Alpha and Omega Semiconductor has a 1 year low of $17.01 and a 1 year high of $54.34.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The semiconductor company reported ($0.28) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.34) by $0.06. The business had revenue of $163.79 million for the quarter, compared to analysts' expectations of $160.07 million. Alpha and Omega Semiconductor had a negative net margin of 15.51% and a negative return on equity of 4.30%. The firm's quarterly revenue was down .5% compared to the same quarter last year. During the same period last year, the firm posted ($0.10) earnings per share. As a group, analysts anticipate that Alpha and Omega Semiconductor will post -1.5 EPS for the current fiscal year.

Insider Activity at Alpha and Omega Semiconductor

In other Alpha and Omega Semiconductor news, EVP Bing Xue sold 1,832 shares of the business's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $31.21, for a total transaction of $57,176.72. Following the sale, the executive vice president owned 132,617 shares of the company's stock, valued at approximately $4,138,976.57. The trade was a 1.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Chunping Chang sold 14,884 shares of Alpha and Omega Semiconductor stock in a transaction on Friday, April 17th. The stock was sold at an average price of $34.47, for a total transaction of $513,051.48. Following the transaction, the chief executive officer owned 635,901 shares in the company, valued at approximately $21,919,507.47. This trade represents a 2.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 59,860 shares of company stock worth $1,913,960. Corporate insiders own 16.70% of the company's stock.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

A number of hedge funds have recently modified their holdings of AOSL. Weber Capital Management LLC ADV acquired a new position in shares of Alpha and Omega Semiconductor during the fourth quarter worth $10,842,000. State Street Corp lifted its holdings in shares of Alpha and Omega Semiconductor by 21.6% during the fourth quarter. State Street Corp now owns 1,474,175 shares of the semiconductor company's stock worth $29,203,000 after purchasing an additional 262,117 shares during the period. Millennium Management LLC lifted its holdings in shares of Alpha and Omega Semiconductor by 57.5% during the third quarter. Millennium Management LLC now owns 637,876 shares of the semiconductor company's stock worth $17,835,000 after purchasing an additional 232,817 shares during the period. The Manufacturers Life Insurance Company lifted its holdings in shares of Alpha and Omega Semiconductor by 12.7% during the second quarter. The Manufacturers Life Insurance Company now owns 1,411,400 shares of the semiconductor company's stock worth $36,217,000 after purchasing an additional 158,869 shares during the period. Finally, UBS Group AG lifted its holdings in shares of Alpha and Omega Semiconductor by 224.7% during the fourth quarter. UBS Group AG now owns 217,121 shares of the semiconductor company's stock worth $4,301,000 after purchasing an additional 150,254 shares during the period. Institutional investors and hedge funds own 78.97% of the company's stock.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited NASDAQ: AOSL is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets.

Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production.

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