Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Gap Up - Still a Buy?

Key Points

• Alpha and Omega Semiconductor shares jumped about 6.7%, opening above the previous close after a gap-up move in early trading.
• Recent earnings topped expectations: the company posted a smaller-than-expected loss of $0.28 per share and revenue of $163.79 million, slightly above analyst forecasts.
• Analyst sentiment is mixed, with a consensus rating of Hold and an average price target of $30.50, even as Needham initiated coverage with a Buy and $50 target.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $42.01, but opened at $44.90. Alpha and Omega Semiconductor shares last traded at $44.5110, with a volume of 77,743 shares trading hands.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. B. Riley Financial raised their target price on Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the stock a "neutral" rating in a research note 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. 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 target price for the company. Zacks Research upgraded shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Finally, Wall Street Zen downgraded shares of Alpha and Omega Semiconductor from a "hold" rating to a "sell" rating in a research report on Saturday. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Alpha and Omega Semiconductor currently has a consensus rating of "Hold" and an average price target of $30.50.

Alpha and Omega Semiconductor Trading Up 6.7%

The business's 50 day moving average is $36.83 and its two-hundred day moving average is $26.72. The company has a market cap of $1.34 billion, a PE ratio of -12.72 and a beta of 2.55.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last released its earnings results on Wednesday, May 6th. The semiconductor company reported ($0.28) earnings per share for the quarter, beating analysts' consensus estimates 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 company had revenue of $163.79 million for the quarter, compared to analysts' expectations of $160.07 million. During the same quarter in the previous year, the company earned ($0.10) EPS. Alpha and Omega Semiconductor's revenue for the quarter was down .5% on a year-over-year basis. As a group, equities research analysts predict that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other Alpha and Omega Semiconductor news, CEO Stephen Chunping Chang sold 14,884 shares of the business's stock in a transaction 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 sale, the chief executive officer owned 635,901 shares in the company, valued at $21,919,507.47. The trade was a 2.29% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 company's 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 sale, the chief financial officer owned 270,003 shares in the company, valued at $9,450,105. This represents a 3.10% 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. Insiders have sold a total of 59,860 shares of company stock worth $1,913,960 in the last 90 days. 16.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

Several hedge funds have recently added to or reduced their stakes in AOSL. Hantz Financial Services Inc. grew its holdings in Alpha and Omega Semiconductor by 634.8% during the 3rd quarter. Hantz Financial Services Inc. now owns 1,036 shares of the semiconductor company's stock valued at $29,000 after purchasing an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in shares of Alpha and Omega Semiconductor during the third quarter valued at approximately $62,000. Strs Ohio bought a new position in shares of Alpha and Omega Semiconductor during the first quarter valued at approximately $70,000. iSAM Funds UK Ltd bought a new position in shares of Alpha and Omega Semiconductor during the third quarter valued at approximately $91,000. Finally, Tower Research Capital LLC TRC boosted its stake in shares of 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 valued at $127,000 after purchasing an additional 4,222 shares in the last quarter. 78.97% of the stock is currently owned by institutional investors.

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.

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.