Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Cross Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Alpha and Omega Semiconductor (NASDAQ:AOSL) moved above its 200-day moving average, trading as high as $49.30 and last changing hands at $45.17. This technical breakout comes well above its 200-day average of $27.93.
• Analyst sentiment is mixed: the stock currently carries an average Hold rating with an average price target of $30.50, though Needham initiated coverage with a Buy and a $50 target. Recent calls also included downgrades to sell from some firms.
• The company recently reported a smaller-than-expected quarterly loss of ($0.28) per share and revenue of $163.79 million, both slightly ahead of estimates. However, revenue slipped 0.5% year over year and analysts expect a full-year loss of about 1.5 EPS.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) passed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $27.93 and traded as high as $49.30. Alpha and Omega Semiconductor shares last traded at $45.17, with a volume of 719,118 shares changing hands.

Analysts Set New Price Targets

AOSL has been the topic of a number of recent analyst reports. Wall Street Zen cut shares of Alpha and Omega Semiconductor from a "hold" rating to a "sell" rating in a research report on Saturday, June 6th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research report on Monday, April 20th. Needham & Company LLC initiated coverage on shares of Alpha and Omega Semiconductor in a research report on Friday, May 1st. They issued a "buy" rating and a $50.00 target price on the stock. 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 target price on shares of Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the company a "neutral" rating in a research report on Monday, April 13th. Two research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Alpha and Omega Semiconductor presently has an average rating of "Hold" and an average target price of $30.50.

Alpha and Omega Semiconductor Price Performance

The company has a market capitalization of $1.35 billion, a PE ratio of -12.69 and a beta of 2.55. The stock's 50 day simple moving average is $39.81 and its 200-day simple moving average is $27.93.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The semiconductor company reported ($0.28) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.34) by $0.06. The company had revenue of $163.79 million for the quarter, compared to analyst estimates 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 business's revenue for the quarter was down .5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.10) earnings per share. On average, equities analysts predict that Alpha and Omega Semiconductor Limited will post -1.5 earnings per share for the current year.

Insiders Place Their Bets

In other Alpha and Omega Semiconductor news, CFO Yifan Liang sold 8,625 shares of the business's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $35.00, for a total transaction of $301,875.00. Following the sale, the chief financial officer directly owned 270,003 shares in the company, valued at $9,450,105. This represents a 3.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Bing Xue sold 1,832 shares of the business's stock in a transaction dated Thursday, April 16th. The stock was 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 in the company, valued at $4,138,976.57. This trade represents a 1.36% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 57,452 shares of company stock worth $1,861,176 over the last three months. Company insiders own 16.70% of the company's stock.

Institutional Trading of Alpha and Omega Semiconductor

A number of large investors have recently made changes to their positions in the company. Empowered Funds LLC increased its stake in shares of Alpha and Omega Semiconductor by 9.9% during the first quarter. Empowered Funds LLC now owns 120,331 shares of the semiconductor company's stock worth $2,667,000 after buying an additional 10,790 shares during the period. Quantinno Capital Management LP increased its stake in shares of Alpha and Omega Semiconductor by 15.2% during the first quarter. Quantinno Capital Management LP now owns 37,248 shares of the semiconductor company's stock worth $825,000 after buying an additional 4,915 shares during the period. Public Employees Retirement System of Ohio increased its stake in shares of Alpha and Omega Semiconductor by 1,361.0% during the first quarter. Public Employees Retirement System of Ohio now owns 9,628 shares of the semiconductor company's stock worth $213,000 after buying an additional 8,969 shares during the period. First Citizens Bank & Trust Co. purchased a new stake in shares of Alpha and Omega Semiconductor during the first quarter worth approximately $351,000. Finally, Principal Financial Group Inc. increased its stake in shares of Alpha and Omega Semiconductor by 1.0% during the first quarter. Principal Financial Group Inc. now owns 120,075 shares of the semiconductor company's stock worth $2,661,000 after buying an additional 1,178 shares during the period. 78.97% of the stock is currently owned by hedge funds and other institutional investors.

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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