Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Gap Up - Time to Buy?

Key Points

• Alpha and Omega Semiconductor (NASDAQ:AOSL) gapped up at the open, rising from a prior close of $38.87 to $40.89 before trading around $39.95, with the stock up about 1% on the day.
• Recent analyst sentiment is mixed: Needham initiated coverage with a Buy and $50 target, while other firms have issued Hold or Sell ratings. Overall, the stock’s consensus rating is Hold with an average price target of $30.50.
• The company beat earnings expectations in its latest quarter, posting ($0.28) EPS versus an expected ($0.34) and revenue of $163.79 million, though it remained unprofitable and saw insider selling from both the CFO and CEO.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $38.87, but opened at $40.89. Alpha and Omega Semiconductor shares last traded at $39.9540, with a volume of 162,283 shares.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. Needham & Company LLC assumed coverage on shares of Alpha and Omega Semiconductor in a research report on Friday, May 1st. They set a "buy" rating and a $50.00 target price for the company. Wall Street Zen upgraded shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Saturday, May 9th. B. Riley Financial boosted 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. Finally, Zacks Research raised shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $30.50.

Alpha and Omega Semiconductor Stock Up 1.0%

The firm has a market capitalization of $1.18 billion, a P/E ratio of -11.02 and a beta of 2.58. The firm's 50-day simple moving average is $29.72 and its 200-day simple moving average is $24.43.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The semiconductor company reported ($0.28) earnings per share (EPS) 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 during the quarter, compared to analysts' expectations of $160.07 million. During the same quarter in the prior year, the company earned ($0.10) EPS. The firm's revenue was down .5% on a year-over-year basis. As a group, analysts expect that Alpha and Omega Semiconductor Limited will post -1.65 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Yifan Liang sold 26,517 shares of the 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 completion of the sale, the chief financial officer owned 278,628 shares of the company's stock, valued at approximately $8,517,657.96. This represents a 8.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Chunping Chang sold 14,884 shares of the firm's stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $34.47, for a total transaction of $513,051.48. Following the completion of the transaction, the chief executive officer owned 635,901 shares in the company, valued at $21,919,507.47. This represents a 2.29% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 59,860 shares of company stock valued at $1,913,960 over the last quarter. Company insiders own 16.70% of the company's stock.

Institutional Trading of Alpha and Omega Semiconductor

A number of institutional investors have recently modified their holdings of the company. CWM LLC raised its holdings in shares of Alpha and Omega Semiconductor by 20.0% during the third quarter. CWM LLC now owns 2,314 shares of the semiconductor company's stock valued at $65,000 after acquiring an additional 386 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings 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 worth $352,000 after acquiring an additional 624 shares during the last quarter. Royal Bank of Canada raised its holdings in Alpha and Omega Semiconductor by 9.2% in the 4th quarter. Royal Bank of Canada now owns 8,938 shares of the semiconductor company's stock worth $177,000 after acquiring an additional 755 shares during the last quarter. Deutsche Bank AG increased its holdings in shares of Alpha and Omega Semiconductor by 1.8% in the 4th quarter. Deutsche Bank AG now owns 47,059 shares of the semiconductor company's stock worth $932,000 after purchasing an additional 844 shares in the last quarter. Finally, Hantz Financial Services Inc. increased its holdings in shares of Alpha and Omega Semiconductor by 634.8% in the 3rd quarter. Hantz Financial Services Inc. now owns 1,036 shares of the semiconductor company's stock worth $29,000 after purchasing an additional 895 shares in the last quarter. 78.97% of the stock is currently owned by hedge funds and other 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.

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