Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Down 7.8% - Here's What Happened

Key Points

• Alpha and Omega Semiconductor shares fell 7.8% in mid-day trading, with the stock dropping to as low as $32.68 as volume came in well below average.
• Several analysts recently updated their views on the company, leaving it with a consensus “Hold” rating and an average price target of $40.00, though opinions remain mixed between buy, hold, and sell calls.
• The company’s latest earnings beat estimates on revenue and EPS, but it still posted a loss; meanwhile, insiders have been selling shares and the stock remains widely held by institutional investors.

Shares of Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) were down 7.8% during mid-day trading on Thursday . The stock traded as low as $32.68 and last traded at $32.5980. 149,605 shares traded hands during trading, a decline of 78% from the average session volume of 669,825 shares. The stock had previously closed at $35.35.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on AOSL. Lake Street Capital initiated coverage on Alpha and Omega Semiconductor in a research note on Thursday, June 25th. They issued a "buy" rating and a $58.00 price target on the stock. B. Riley Financial lifted their price objective on Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the company a "neutral" rating in a research note on Monday, April 13th. Weiss Ratings reissued a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. Needham & Company LLC started coverage on Alpha and Omega Semiconductor in a report on Friday, May 1st. They set a "buy" rating and a $50.00 price target for the company. Finally, Stifel Nicolaus lifted their price target on Alpha and Omega Semiconductor from $36.00 to $42.00 and gave the stock a "hold" rating in a research report on Wednesday, June 24th. Three 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's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $40.00.

Alpha and Omega Semiconductor Trading Down 10.5%

The company has a market capitalization of $947.37 million, a PE ratio of -8.86 and a beta of 2.55. The business's fifty day moving average is $42.37 and its two-hundred day moving average is $30.96.

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 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 business had revenue of $163.79 million for the quarter, compared to the consensus estimate of $160.07 million. During the same period last year, the business posted ($0.10) EPS. The company's revenue was down .5% compared to the same quarter last year. As a group, equities research analysts anticipate that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current year.

Insider Buying and Selling

In other Alpha and Omega Semiconductor news, EVP Bing Xue sold 4,916 shares of the business's stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $47.09, for a total value of $231,494.44. Following the completion of the transaction, the executive vice president owned 123,660 shares of the company's stock, valued at approximately $5,823,149.40. The trade was a 3.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Yifan Liang sold 8,625 shares of the company'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 transaction, the chief financial officer owned 270,003 shares in the company, valued at $9,450,105. This represents a 3.10% 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 28,425 shares of company stock worth $1,046,421. 16.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Alpha and Omega Semiconductor

A number of hedge funds have recently added to or reduced their stakes in the stock. Royal Bank of Canada boosted its stake in shares of Alpha and Omega Semiconductor by 7.4% in the 1st quarter. Royal Bank of Canada now owns 11,939 shares of the semiconductor company's stock worth $297,000 after buying an additional 820 shares during the last quarter. AQR Capital Management LLC purchased a new stake in Alpha and Omega Semiconductor during the first quarter valued at $471,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Alpha and Omega Semiconductor by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,167 shares of the semiconductor company's stock valued at $352,000 after acquiring an additional 624 shares during the period. Strs Ohio bought a new position in Alpha and Omega Semiconductor in the first quarter valued at about $70,000. Finally, Creative Planning purchased a new position in Alpha and Omega Semiconductor in the second quarter worth about $248,000. 78.97% of the stock is currently owned by hedge funds and other institutional investors.

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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