Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Down 11% - What's Next?

Key Points

• Alpha and Omega Semiconductor (NASDAQ:AOSL) fell about 11% in intraday trading, with volume running well below average. The stock last traded near $38.75 after closing at $43.52 the previous day.
• Analyst sentiment is mixed: the stock currently has an average “Hold” rating and a consensus price target of $40. Recent actions included upgrades from Zacks and Wall Street Zen, while Needham initiated coverage with a Buy and a $50 target.
• The company recently beat earnings expectations, reporting EPS of -$0.28 versus an expected -$0.34 and revenue of $163.79 million. However, the business still posted negative margins, and insider selling has continued in recent months.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) fell 11% during mid-day trading on Thursday . The company traded as low as $39.35 and last traded at $38.7470. Approximately 269,982 shares were traded during mid-day trading, a decline of 60% from the average daily volume of 671,282 shares. The stock had previously closed at $43.52.

Analysts Set New Price Targets

AOSL has been the topic of several research reports. B. Riley Financial increased their target price on 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. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. 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. Needham & Company LLC started coverage on shares of Alpha and Omega Semiconductor in a research note on Friday, May 1st. They issued a "buy" rating and a $50.00 price objective for the company. Finally, Wall Street Zen upgraded shares of Alpha and Omega Semiconductor from a "sell" rating to a "hold" rating in a report on Saturday, June 27th. Three analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $40.00.

Alpha and Omega Semiconductor Stock Down 14.6%

The stock has a market capitalization of $1.11 billion, a PE ratio of -10.50 and a beta of 2.55. The stock has a fifty day moving average of $43.52 and a 200-day moving average of $29.82.

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 for the quarter, topping the consensus estimate of ($0.34) by $0.06. Alpha and Omega Semiconductor had a negative return on equity of 4.30% and a negative net margin of 15.51%.The company had revenue of $163.79 million for the quarter, compared to the consensus estimate of $160.07 million. During the same quarter in the prior year, the business earned ($0.10) EPS. Alpha and Omega Semiconductor's revenue was down .5% on a year-over-year basis. Equities research analysts expect that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current year.

Insider Activity

In related news, CFO Yifan Liang sold 8,625 shares of the stock in a transaction on Friday, April 17th. The stock was sold at an average price of $35.00, for a total value of $301,875.00. Following the transaction, the chief financial officer owned 270,003 shares of the company's stock, valued at $9,450,105. This represents a 3.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Bing Xue sold 4,916 shares of the firm's stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $47.09, for a total value of $231,494.44. Following the completion of the sale, the executive vice president owned 123,660 shares in the company, valued at approximately $5,823,149.40. This represents a 3.82% 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. In the last three months, insiders have sold 62,368 shares of company stock worth $2,092,671. 16.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Royal Bank of Canada lifted its stake in Alpha and Omega Semiconductor by 7.4% during the first quarter. Royal Bank of Canada now owns 11,939 shares of the semiconductor company's stock worth $297,000 after purchasing an additional 820 shares during the last quarter. AQR Capital Management LLC acquired a new stake in Alpha and Omega Semiconductor during the first quarter worth approximately $471,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Alpha and Omega Semiconductor by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,167 shares of the semiconductor company's stock worth $352,000 after purchasing an additional 624 shares in the last quarter. Strs Ohio purchased a new stake in shares of Alpha and Omega Semiconductor during the 1st quarter worth approximately $70,000. Finally, Creative Planning acquired a new position in shares of Alpha and Omega Semiconductor in the 2nd quarter valued at $248,000. Hedge funds and other institutional investors 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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