Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Down 7.5% - What's Next?

Key Points

• Alpha and Omega Semiconductor shares fell 7.5% on Friday, trading as low as $41.70 on volume far below average. The move came after the stock had previously closed at $45.70.
• Wall Street sentiment is mixed but leans cautious: the company now has a consensus Hold rating and an average price target of $40, though several firms recently initiated or maintained Buy ratings with targets as high as $58.
• The company beat earnings and revenue estimates in its latest quarter, but results were still weak year over year, and insiders have been selling shares. CEO Stephen Chunping Chang and EVP Bing Xue both recently sold stock, while institutions continue to hold a large majority of the shares.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) shares were down 7.5% during trading on Friday . The stock traded as low as $41.70 and last traded at $42.2560. 94,268 shares were traded during mid-day trading, a decline of 86% from the average session volume of 667,522 shares. The stock had previously closed at $45.70.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on AOSL shares. Zacks Research raised Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Needham & Company LLC initiated 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 target on the stock. Lake Street Capital started coverage on shares of Alpha and Omega Semiconductor in a report on Thursday. They issued a "buy" rating and a $58.00 price target for the company. Wall Street Zen downgraded shares of Alpha and Omega Semiconductor from a "hold" rating to a "sell" rating in a report on Saturday, June 6th. Finally, B. Riley Financial lifted 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. Three investment 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. Based on data from MarketBeat.com, Alpha and Omega Semiconductor currently has a consensus rating of "Hold" and a consensus price target of $40.00.

Alpha and Omega Semiconductor Trading Down 4.3%

The business has a fifty day simple moving average of $42.64 and a two-hundred day simple moving average of $29.16. The company has a market cap of $1.31 billion, a PE ratio of -12.30 and a beta of 2.55.

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

Insiders Place Their Bets

In other news, CEO Stephen Chunping Chang sold 14,884 shares of the business's stock in a transaction that occurred 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 directly owned 635,901 shares in the company, valued at $21,919,507.47. The trade was a 2.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at 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 business's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $47.09, for a total value of $231,494.44. Following the transaction, the executive vice president directly owned 123,660 shares in the company, valued at $5,823,149.40. This trade represents a 3.82% 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. Insiders have sold 62,368 shares of company stock valued at $2,092,671 in the last ninety days. 16.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Alpha and Omega Semiconductor

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its stake in Alpha and Omega Semiconductor by 1.4% during the third quarter. Vanguard Group Inc. now owns 2,453,975 shares of the semiconductor company's stock worth $68,613,000 after purchasing an additional 33,959 shares during the period. The Manufacturers Life Insurance Company grew its stake in shares of Alpha and Omega Semiconductor by 4.7% in the 4th quarter. The Manufacturers Life Insurance Company now owns 1,628,634 shares of the semiconductor company's stock valued at $32,263,000 after buying an additional 73,631 shares during the period. State Street Corp grew its stake in shares of Alpha and Omega Semiconductor by 21.6% in the 4th quarter. State Street Corp now owns 1,474,175 shares of the semiconductor company's stock valued at $29,203,000 after buying an additional 262,117 shares during the period. Wellington Management Group LLP increased its holdings in shares of Alpha and Omega Semiconductor by 15.0% during the 3rd quarter. Wellington Management Group LLP now owns 864,965 shares of the semiconductor company's stock worth $24,184,000 after buying an additional 113,077 shares during the last quarter. Finally, Millennium Management LLC increased its holdings in shares of Alpha and Omega Semiconductor by 57.5% during the 3rd quarter. Millennium Management LLC now owns 637,876 shares of the semiconductor company's stock worth $17,835,000 after buying an additional 232,817 shares during the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.