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

Key Points

• Alpha and Omega Semiconductor (NASDAQ:AOSL) gapped down before Thursday’s trading, opening at $49.01 after closing at $52.72 and last trading near $48.51, for a decline of about 2.7%.
• Analyst sentiment is mixed, with the stock carrying an average Hold rating and a consensus price target of $30.50; recent calls included a new Buy from Needham, but Stifel and Weiss remained cautious.
• The company recently beat quarterly EPS and revenue estimates, but results were still weak year over year, and insider selling has been notable, with executives offloading shares over the past 90 days.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) shares gapped down prior to trading on Thursday . The stock had previously closed at $52.72, but opened at $49.01. Alpha and Omega Semiconductor shares last traded at $48.5050, with a volume of 130,077 shares changing hands.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on AOSL shares. Needham & Company LLC started coverage on 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. Stifel Nicolaus dropped their price target on Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating on the stock in a research note on Friday, February 6th. Wall Street Zen raised Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Saturday, May 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. 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 assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $30.50.

Alpha and Omega Semiconductor Stock Down 2.7%

The company has a 50 day simple moving average of $35.90 and a 200-day simple moving average of $26.33. The stock has a market capitalization of $1.54 billion, a price-to-earnings ratio of -14.41 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 analysts' consensus estimates 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 company had revenue of $163.79 million for the quarter, compared to analyst estimates of $160.07 million. During the same period in the prior year, the firm earned ($0.10) earnings per share. Alpha and Omega Semiconductor's revenue for the quarter was down .5% on a year-over-year basis. As a group, sell-side analysts anticipate that Alpha and Omega Semiconductor Limited will post -1.5 earnings per share for the current fiscal year.

Insider Transactions at Alpha and Omega Semiconductor

In other news, CFO Yifan Liang sold 26,517 shares of the company's stock in a transaction that occurred on Tuesday, April 14th. The stock was sold at an average price of $30.57, for a total transaction of $810,624.69. Following the transaction, the chief financial officer directly owned 278,628 shares of the company's stock, valued at $8,517,657.96. This represents a 8.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Bing Xue sold 2,408 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $21.92, for a total value of $52,783.36. Following the transaction, the executive vice president directly owned 113,631 shares in the company, valued at $2,490,791.52. The trade was a 2.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 59,860 shares of company stock valued at $1,913,960 over the last ninety days. Company insiders own 16.70% of the company's stock.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

A number of institutional investors have recently modified their holdings of AOSL. Royal Bank of Canada grew its holdings in Alpha and Omega Semiconductor by 7.4% during 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 in the last quarter. AQR Capital Management LLC purchased a new stake in Alpha and Omega Semiconductor in the 1st quarter valued at $471,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of 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 worth $352,000 after acquiring an additional 624 shares in the last quarter. Strs Ohio bought a new stake in shares of Alpha and Omega Semiconductor in the 1st quarter worth $70,000. Finally, Creative Planning bought a new stake in shares of Alpha and Omega Semiconductor in the 2nd quarter worth $248,000. 78.97% of the stock is owned by institutional investors and hedge funds.

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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