Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Gap Up - Should You Buy?

Key Points

• Alpha and Omega Semiconductor (NASDAQ:AOSL) gapped up at the open, starting at $37.05 after closing at $34.69, though it later traded near $34.77. The move came with modest volume of 34,787 shares.
• Analysts have been mixed on the stock: recent upgrades and higher price targets lifted the average target to $40, but the overall consensus remains Hold. Current ratings include three Buys, three Holds, and one Sell.
• The company recently beat earnings expectations, reporting ($0.28) EPS versus an expected ($0.34) and revenue of $163.79 million, but fundamentals remain weak with negative margins and a negative full-year EPS outlook. Insider selling has also been notable over the past 90 days.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $34.69, but opened at $37.05. Alpha and Omega Semiconductor shares last traded at $34.77, with a volume of 34,787 shares changing hands.

Analyst Ratings Changes

Several research firms recently weighed in on AOSL. Wall Street Zen upgraded Alpha and Omega Semiconductor from a "sell" rating to a "hold" rating in a report on Saturday, June 27th. B. Riley Financial lifted their price target on shares of 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. Stifel Nicolaus boosted 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 note on Wednesday, June 24th. Needham & Company LLC initiated coverage on shares of Alpha and Omega Semiconductor in a report on Friday, May 1st. They set a "buy" rating and a $50.00 price objective for the company. Finally, Zacks Research upgraded Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. 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 stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $40.00.

Alpha and Omega Semiconductor Stock Up 0.5%

The firm has a market cap of $1.04 billion, a price-to-earnings ratio of -9.78 and a beta of 2.55. The stock's 50-day moving average price is $42.82 and its 200 day moving average price is $30.76.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last posted its quarterly earnings results 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 return on equity of 4.30% and a negative net margin of 15.51%.The firm had revenue of $163.79 million during the quarter, compared to analysts' expectations of $160.07 million. During the same quarter in the prior year, the firm posted ($0.10) EPS. The company's revenue for the quarter was down .5% on a year-over-year basis. On average, research analysts predict that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current year.

Insider Activity at Alpha and Omega Semiconductor

In other Alpha and Omega Semiconductor news, CFO Yifan Liang sold 8,625 shares of Alpha and Omega Semiconductor stock in a transaction 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 owned 270,003 shares in the company, valued at $9,450,105. The trade was a 3.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Bing Xue sold 4,916 shares of the stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $47.09, for a total transaction of $231,494.44. Following the completion of the transaction, the executive vice president owned 123,660 shares of the company's stock, valued at approximately $5,823,149.40. This represents a 3.82% 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. Over the last ninety days, insiders sold 30,257 shares of company stock worth $1,103,598. 16.70% of the stock is owned by corporate insiders.

Institutional Trading of Alpha and Omega Semiconductor

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AOSL. Weber Capital Management LLC ADV acquired a new stake in Alpha and Omega Semiconductor during the fourth quarter valued at approximately $10,842,000. JPMorgan Chase & Co. raised its holdings in shares of Alpha and Omega Semiconductor by 72.4% in the 3rd quarter. JPMorgan Chase & Co. now owns 158,844 shares of the semiconductor company's stock worth $4,441,000 after buying an additional 66,723 shares in the last quarter. Acuitas Investments LLC raised its holdings in shares of Alpha and Omega Semiconductor by 38.6% in the 3rd quarter. Acuitas Investments LLC now owns 240,920 shares of the semiconductor company's stock worth $6,736,000 after buying an additional 67,100 shares in the last quarter. Massachusetts Financial Services Co. MA bought a new position in shares of Alpha and Omega Semiconductor during the 4th quarter worth approximately $563,000. Finally, Royce & Associates LP boosted its stake in Alpha and Omega Semiconductor by 10.9% in the 4th quarter. Royce & Associates LP now owns 474,015 shares of the semiconductor company's stock valued at $9,390,000 after buying an additional 46,662 shares in the last quarter. Institutional investors own 78.97% of the company's stock.

About Alpha and Omega Semiconductor

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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