Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Down 8% - Here's Why

Key Points

• Alpha and Omega Semiconductor shares fell 8% to about $28.57 in midday trading, with volume significantly below the average session level.
• Analyst sentiment remains mixed: three analysts rate the stock Buy, three Hold and one Sell. The consensus rating is Hold, with an average price target of $41.50, despite recent target cuts from Needham and B. Riley.
• The company exceeded quarterly EPS and revenue estimates, reporting a loss of $0.13 per share and $170.37 million in revenue, but revenue declined 3.5% year over year and profitability remained negative.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) shares were down 8% during mid-day trading on Tuesday . The stock traded as low as $28.56 and last traded at $28.5720. 77,932 shares were traded during trading, a decline of 88% from the average session volume of 662,903 shares. The stock had previously closed at $31.07.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Needham & Company LLC cut their target price on shares of Alpha and Omega Semiconductor from $50.00 to $45.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Williams Trading set a $45.00 price target on Alpha and Omega Semiconductor in a research report on Thursday. B. Riley Financial dropped their price objective on Alpha and Omega Semiconductor from $38.00 to $34.00 and set a "neutral" rating on the stock in a research note on Thursday, August 13th. Stifel Nicolaus raised their price objective on Alpha and Omega Semiconductor from $36.00 to $42.00 and gave the company a "hold" rating in a research report on Wednesday, June 24th. Finally, Wall Street Zen cut Alpha and Omega Semiconductor from a "hold" rating to a "sell" rating in a research report on Saturday, July 25th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $41.50.

Alpha and Omega Semiconductor Price Performance

The company has a market capitalization of $842.17 million, a P/E ratio of -20.07 and a beta of 2.60. The company's 50-day moving average price is $37.41 and its two-hundred day moving average price is $32.69.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last announced its earnings results on Wednesday, August 12th. The semiconductor company reported ($0.13) EPS for the quarter, topping the consensus estimate of ($0.24) by $0.11. Alpha and Omega Semiconductor had a negative net margin of 6.23% and a negative return on equity of 4.88%. The business had revenue of $170.37 million during the quarter, compared to the consensus estimate of $168.00 million. During the same quarter in the previous year, the firm posted $0.02 EPS. Alpha and Omega Semiconductor's revenue was down 3.5% compared to the same quarter last year. On average, analysts anticipate that Alpha and Omega Semiconductor Limited will post -1.78 earnings per share for the current fiscal year.

Insider Transactions at Alpha and Omega Semiconductor

In other news, EVP Bing Xue sold 4,916 shares of the business's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $47.09, for a total transaction of $231,494.44. Following the completion of the sale, the executive vice president owned 123,660 shares in the company, valued at $5,823,149.40. The trade was a 3.82% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.70% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

A number of large investors have recently made changes to their positions in AOSL. Royal Bank of Canada boosted its stake in 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 valued at $297,000 after purchasing an additional 820 shares during the period. AQR Capital Management LLC bought a new position in Alpha and Omega Semiconductor during the 1st quarter worth $471,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of 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 buying an additional 624 shares in the last quarter. Strs Ohio acquired a new stake in shares of Alpha and Omega Semiconductor during the first quarter worth $70,000. Finally, Creative Planning bought a new stake in shares of Alpha and Omega Semiconductor in the second quarter valued at about $248,000. Institutional investors own 78.97% of the company's stock.

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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