Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Down 8.7% - What's Next?

Key Points

• Alpha and Omega Semiconductor shares fell 8.7% in Wednesday trading, touching an intraday low of $48.00 as volume came in well below average. The move followed a prior close of $53.32.
• Recent analyst sentiment is mixed, but the stock currently carries a consensus Hold rating with a $30.50 average price target. Ratings have ranged from Buy to Sell, with several firms recently upgrading the name from Strong Sell to Hold.
• The company’s latest earnings beat expectations, posting a smaller-than-expected loss and slightly higher revenue, but fundamentals remain weak with negative margins and a projected full-year loss. Insiders have also been active, with the CFO selling shares and a director making a notable purchase.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report)'s share price dropped 8.7% during mid-day trading on Wednesday . The company traded as low as $48.00 and last traded at $48.68. Approximately 289,854 shares traded hands during trading, a decline of 54% from the average daily volume of 627,791 shares. The stock had previously closed at $53.32.

Analyst Ratings Changes

AOSL has been the subject of a number of recent research reports. Weiss Ratings restated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. Needham & Company LLC initiated coverage on Alpha and Omega Semiconductor in a research note on Friday, May 1st. They set a "buy" rating and a $50.00 price target for the company. Wall Street Zen upgraded Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Saturday, May 9th. Zacks Research upgraded Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Finally, B. Riley Financial boosted their price target 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. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Alpha and Omega Semiconductor currently has a consensus rating of "Hold" and a consensus price target of $30.50.

Alpha and Omega Semiconductor Stock Down 4.4%

The firm's fifty day simple moving average is $34.64 and its two-hundred day simple moving average is $25.85. The firm has a market cap of $1.53 billion, a PE ratio of -14.33 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) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.06. The company had revenue of $163.79 million during the quarter, compared to the consensus estimate 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%. Alpha and Omega Semiconductor's quarterly revenue was down .5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.10) EPS. As a group, analysts anticipate that Alpha and Omega Semiconductor Limited will post -1.5 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Alpha and Omega Semiconductor news, CFO Yifan Liang sold 8,625 shares of the 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 completion of 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 position. The transaction 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, Director Mike F. Chang purchased 33,727 shares of the company's stock in a transaction that occurred on Monday, March 9th. The shares were purchased at an average cost of $19.00 per share, with a total value of $640,813.00. Following the completion of the purchase, the director owned 4,369,574 shares of the company's stock, valued at $83,021,906. The trade was a 0.78% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have sold 59,860 shares of company stock worth $1,913,960. Company insiders own 16.70% of the company's stock.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

Several institutional investors have recently bought and sold shares of AOSL. Hantz Financial Services Inc. increased its holdings in shares of Alpha and Omega Semiconductor by 634.8% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,036 shares of the semiconductor company's stock worth $29,000 after buying an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of Alpha and Omega Semiconductor in the 3rd quarter valued at about $62,000. Strs Ohio purchased a new position in Alpha and Omega Semiconductor in the first quarter worth about $70,000. iSAM Funds UK Ltd bought a new stake in Alpha and Omega Semiconductor during the third quarter worth approximately $91,000. Finally, Tower Research Capital LLC TRC increased its stake in Alpha and Omega Semiconductor by 574.4% during the second quarter. Tower Research Capital LLC TRC now owns 4,957 shares of the semiconductor company's stock worth $127,000 after acquiring an additional 4,222 shares during the last quarter. 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.

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.