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

Key Points

• AOSL gapped down at the open from $42.34 to $38.60 and was last trading around $39.64, roughly a 7% decline on volume of about 245,000 shares.
• The company reported an EPS miss (‑$0.16 vs. consensus ‑$0.08) with a negative net margin (‑15.06%) and negative ROE, while sell-side forecasts expect about ‑1.65 EPS for the fiscal year.
• Analyst sentiment is mixed but tepid: MarketBeat shows a consensus "Hold" rating with a consensus target of $24 and price targets ranging roughly $22–$25 across brokers.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $42.34, but opened at $38.60. Alpha and Omega Semiconductor shares last traded at $39.6380, with a volume of 245,064 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on AOSL. 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 report on Monday, April 13th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a report on Monday, April 20th. Zacks Research upgraded Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Wall Street Zen downgraded Alpha and Omega Semiconductor from a "hold" rating to a "strong sell" rating in a report on Saturday, February 7th. Finally, Stifel Nicolaus dropped their target price on Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating on the stock in a report on Friday, February 6th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $24.00.

Alpha and Omega Semiconductor Trading Down 7.0%

The stock has a market capitalization of $1.17 billion, a P/E ratio of -11.35 and a beta of 1.94. The company's 50-day moving average is $25.16 and its two-hundred day moving average is $23.52.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last announced its quarterly earnings results on Thursday, February 5th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). Alpha and Omega Semiconductor had a negative return on equity of 3.78% and a negative net margin of 15.06%.The business had revenue of $162.26 million for the quarter, compared to analyst estimates of $160.67 million. During the same quarter last year, the firm posted $0.09 EPS. The company's revenue was down 6.3% compared to the same quarter last year. Sell-side analysts expect that Alpha and Omega Semiconductor Limited will post -1.65 EPS for the current fiscal year.

Insider Activity at Alpha and Omega Semiconductor

In other news, CEO Stephen Chunping Chang sold 14,884 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $34.47, for a total value of $513,051.48. Following the completion of the transaction, the chief executive officer directly owned 635,901 shares in the company, valued at $21,919,507.47. This trade represents a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Yifan Liang sold 26,517 shares of the stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $30.57, for a total transaction of $810,624.69. Following the completion of the transaction, the chief financial officer owned 278,628 shares of the company's stock, valued at $8,517,657.96. This trade represents a 8.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 59,860 shares of company stock valued at $1,913,960. Insiders own 16.70% of the company's stock.

Institutional Trading of Alpha and Omega Semiconductor

Several hedge funds and other institutional investors have recently modified their holdings of AOSL. Royal Bank of Canada boosted its position in shares of Alpha and Omega Semiconductor by 7.4% in the first 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 period. AQR Capital Management LLC acquired a new position in Alpha and Omega Semiconductor in the 1st quarter valued at approximately $471,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Alpha and Omega Semiconductor by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,167 shares of the semiconductor company's stock valued at $352,000 after buying an additional 624 shares during the period. Strs Ohio acquired a new position in Alpha and Omega Semiconductor in the 1st quarter worth about $70,000. Finally, Creative Planning acquired a new position in Alpha and Omega Semiconductor in the 2nd quarter worth about $248,000. Institutional investors and hedge funds 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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