Alpha and Omega Semiconductor (NASDAQ:AOSL) Sets New 12-Month High - Should You Buy?

Key Points

• Shares of Alpha and Omega Semiconductor reached a new 52-week high, trading as high as $33.50 and last at $34.33 on strong volume, up roughly 8.6% from the prior close.
• Analysts are mixed: MarketBeat shows a consensus "Hold" with an average target of $24 despite one Buy, three Holds and one Sell, leaving the stock trading well above analyst targets.
• Fundamentals remain challenged—AOSL reported an EPS miss (–$0.16 vs. –$0.08 expected), negative margins and revenue down 6.3% YoY—yet insider activity includes a director buying 33,727 shares at $19 while the CEO sold 5,594 shares under a 10b5‑1 plan.

Shares of Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) hit a new 52-week high during trading on Friday . The company traded as high as $33.50 and last traded at $34.33, with a volume of 308747 shares traded. The stock had previously closed at $31.21.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on AOSL. Weiss Ratings reissued a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research report on Wednesday, January 21st. Stifel Nicolaus cut their price objective on shares of Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating on the stock in a research report on Friday, February 6th. Wall Street Zen lowered shares of Alpha and Omega Semiconductor from a "hold" rating to a "strong sell" rating in a research report on Saturday, February 7th. Zacks Research raised shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Finally, B. Riley Financial upped their price target on shares of Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the stock a "neutral" rating in a research report on Monday. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $24.00.

Alpha and Omega Semiconductor Stock Up 8.6%

The stock has a market capitalization of $1.01 billion, a price-to-earnings ratio of -9.76 and a beta of 1.94. The company's fifty day simple moving average is $22.55 and its 200 day simple moving average is $22.98.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last released its quarterly earnings data on Thursday, February 5th. The semiconductor company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.08). Alpha and Omega Semiconductor had a negative net margin of 15.06% and a negative return on equity of 3.78%. The company had revenue of $162.26 million during the quarter, compared to analyst estimates of $160.67 million. During the same quarter in the prior year, the firm earned $0.09 earnings per share. Alpha and Omega Semiconductor's revenue for the quarter was down 6.3% on a year-over-year basis. As a group, analysts anticipate that Alpha and Omega Semiconductor Limited will post -0.82 earnings per share for the current year.

Insider Activity at Alpha and Omega Semiconductor

In related news, Director Mike F. Chang acquired 33,727 shares of the firm's stock in a transaction on Monday, March 9th. The shares were purchased at an average cost of $19.00 per share, for a total transaction of $640,813.00. Following the completion of the acquisition, the director directly owned 4,369,574 shares in the company, valued at approximately $83,021,906. This trade represents a 0.78% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Stephen Chunping Chang sold 5,594 shares of the company's stock in a transaction on Tuesday, April 14th. The shares were sold at an average price of $31.90, for a total transaction of $178,448.60. Following the completion of the transaction, the chief executive officer owned 650,785 shares in the company, valued at approximately $20,760,041.50. This represents a 0.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 34,519 shares of company stock valued at $1,041,857 in the last ninety days. Company insiders own 16.70% of the company's stock.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

Several institutional investors and hedge funds have recently modified their holdings of AOSL. Invesco Ltd. grew its stake in shares of Alpha and Omega Semiconductor by 19.8% in the fourth quarter. Invesco Ltd. now owns 381,767 shares of the semiconductor company's stock valued at $7,563,000 after acquiring an additional 63,134 shares in the last quarter. Summit Global Investments acquired a new position in shares of Alpha and Omega Semiconductor in the fourth quarter valued at about $223,000. Empowered Funds LLC grew its stake in shares of Alpha and Omega Semiconductor by 106.7% in the fourth quarter. Empowered Funds LLC now owns 109,541 shares of the semiconductor company's stock valued at $2,170,000 after acquiring an additional 56,558 shares in the last quarter. XTX Topco Ltd acquired a new position in shares of Alpha and Omega Semiconductor in the fourth quarter valued at about $738,000. Finally, Tudor Investment Corp ET AL grew its stake in shares of Alpha and Omega Semiconductor by 41.1% in the fourth quarter. Tudor Investment Corp ET AL now owns 15,401 shares of the semiconductor company's stock valued at $305,000 after acquiring an additional 4,488 shares in the last quarter. 78.97% of the stock is currently owned by institutional investors and hedge funds.

Alpha and Omega Semiconductor Company Profile

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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