Alpha and Omega Semiconductor (NASDAQ:AOSL) Stock Price Up 10.5% - Here's Why

Key Points

• Alpha and Omega Semiconductor (NASDAQ:AOSL) jumped 10.5% in mid-day trading, reaching as high as $47.87 after closing at $43.15 the previous session.
• The move came alongside a mixed analyst backdrop: Needham has a buy rating with a $50 target, while other firms have issued hold or sell calls, leaving the consensus at Hold with a $30.50 average target.
• The company recently beat quarterly EPS and revenue estimates, but it still posted a loss of $0.28 per share and saw revenue decline slightly year over year; insiders have also been selling shares, including recent sales by the EVP and CEO.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report)'s share price rose 10.5% during mid-day trading on Thursday . The stock traded as high as $47.87 and last traded at $47.6810. Approximately 104,382 shares traded hands during trading, a decline of 84% from the average daily volume of 647,175 shares. The stock had previously closed at $43.15.

Analyst Upgrades and Downgrades

AOSL has been the subject of several recent analyst reports. Wall Street Zen cut shares of Alpha and Omega Semiconductor from a "hold" rating to a "sell" rating in a research report on Saturday, June 6th. B. Riley Financial raised their price objective on shares of Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the stock a "neutral" rating in a research report on Monday, April 13th. Needham & Company LLC began 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 price objective for the company. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research report on Monday, April 20th. Finally, Zacks Research upgraded shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $30.50.

Alpha and Omega Semiconductor Stock Up 10.8%

The firm has a market capitalization of $1.43 billion, a price-to-earnings ratio of -13.44 and a beta of 2.55. The business's 50-day simple moving average is $40.21 and its two-hundred day simple moving average is $28.09.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last announced its quarterly 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 business had revenue of $163.79 million during the quarter, compared to analysts' expectations of $160.07 million. During the same period last year, the business earned ($0.10) earnings per share. The business's revenue for the quarter was down .5% on a year-over-year basis. Sell-side analysts anticipate that Alpha and Omega Semiconductor Limited will post -1.5 earnings per share for the current year.

Insider Activity

In other news, EVP Bing Xue sold 4,916 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $47.09, for a total value 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 trade represents a 3.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 shares were 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 directly owned 635,901 shares of the company's stock, valued at approximately $21,919,507.47. The trade was a 2.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 62,368 shares of company stock valued at $2,092,671. 16.70% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AOSL. Northwestern Mutual Wealth Management Co. purchased a new position in shares of Alpha and Omega Semiconductor in the third quarter valued at approximately $62,000. Strs Ohio purchased a new position in Alpha and Omega Semiconductor in the first quarter worth approximately $70,000. iSAM Funds UK Ltd purchased a new position in Alpha and Omega Semiconductor in the third quarter worth approximately $91,000. Tower Research Capital LLC TRC lifted its stake in Alpha and Omega Semiconductor by 574.4% in the second quarter. Tower Research Capital LLC TRC now owns 4,957 shares of the semiconductor company's stock worth $127,000 after acquiring an additional 4,222 shares during the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in Alpha and Omega Semiconductor by 79.9% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,926 shares of the semiconductor company's stock worth $157,000 after acquiring an additional 3,519 shares during the last quarter. Hedge funds and other 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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