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

Key Points

• Alpha and Omega Semiconductor shares fell sharply, gapping down from a prior close of $38.24 to an open of $35.11 and last trading around $34.38, a drop of about 10.5%.
• Analyst sentiment is mixed but cautious: the stock carries a consensus “Hold” rating with an average price target of $40, after several recent rating changes including upgrades to Hold and one reiterated Sell.
• Recent earnings beat expectations but remain weak overall, with quarterly EPS of -$0.28 topping estimates, while revenue came in at $163.79 million and the company continues to post negative margins and forecast full-year losses.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $38.24, but opened at $35.11. Alpha and Omega Semiconductor shares last traded at $34.3790, with a volume of 81,042 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on AOSL. Zacks Research raised Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a report on Monday, April 20th. B. Riley Financial raised their target price on shares of 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. Stifel Nicolaus lifted their price objective on shares of 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. Finally, Wall Street Zen upgraded Alpha and Omega Semiconductor from a "sell" rating to a "hold" rating in a research note on Saturday, June 27th. Three 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 stock currently has a consensus rating of "Hold" and an average price target of $40.00.

Alpha and Omega Semiconductor Stock Down 10.5%

The firm has a market capitalization of $1.02 billion, a price-to-earnings ratio of -9.61 and a beta of 2.55. The firm has a 50 day moving average of $43.37 and a two-hundred day moving average of $30.18.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last issued its quarterly earnings data 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 net margin of 15.51% and a negative return on equity of 4.30%. The business had revenue of $163.79 million during the quarter, compared to the consensus estimate of $160.07 million. During the same quarter in the prior year, the firm earned ($0.10) EPS. The firm's revenue was down .5% compared to the same quarter last year. Sell-side analysts forecast that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Stephen Chunping Chang sold 14,884 shares of the stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $34.47, for a total value of $513,051.48. Following the completion of the sale, the chief executive officer owned 635,901 shares of the company's stock, valued at approximately $21,919,507.47. This represents a 2.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Yifan Liang sold 8,625 shares of the stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $35.00, for a total transaction of $301,875.00. Following the sale, the chief financial officer directly owned 270,003 shares of the company's stock, valued at $9,450,105. This represents a 3.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 62,368 shares of company stock worth $2,092,671 in the last ninety days. Company insiders own 16.70% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Weber Capital Management LLC ADV bought a new stake in Alpha and Omega Semiconductor in the fourth quarter worth approximately $10,842,000. JPMorgan Chase & Co. lifted its stake in shares of Alpha and Omega Semiconductor by 72.4% in the third quarter. JPMorgan Chase & Co. now owns 158,844 shares of the semiconductor company's stock valued at $4,441,000 after buying an additional 66,723 shares in the last quarter. Acuitas Investments LLC boosted its stake in Alpha and Omega Semiconductor by 38.6% during the 3rd quarter. Acuitas Investments LLC now owns 240,920 shares of the semiconductor company's stock valued at $6,736,000 after purchasing an additional 67,100 shares during the last quarter. Massachusetts Financial Services Co. MA purchased a new position in shares of Alpha and Omega Semiconductor during the fourth quarter valued at approximately $563,000. Finally, WINTON GROUP Ltd grew its stake in shares of Alpha and Omega Semiconductor by 189.9% in the 4th quarter. WINTON GROUP Ltd now owns 137,265 shares of the semiconductor company's stock worth $2,719,000 after acquiring an additional 89,914 shares in the last quarter. 78.97% of the stock is owned by institutional investors.

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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