Alpha and Omega Semiconductor (NASDAQ:AOSL) Stock Price Up 11% - Still a Buy?

Key Points

• Alpha and Omega Semiconductor shares jumped 11% in Tuesday trading, reaching as high as $46.85 before settling at $46.31.
• Recent analyst actions were mixed, but Needham initiated coverage with a Buy rating and a $50 price target; overall, the stock carries a consensus Hold rating with an average target of $30.50.
• The company beat quarterly earnings expectations, reporting a smaller-than-expected loss and higher-than-forecast revenue, though profitability remains weak and insiders recently sold shares under pre-arranged trading plans.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report)'s share price traded up 11% during mid-day trading on Tuesday . The stock traded as high as $46.85 and last traded at $46.31. 384,785 shares were traded during mid-day trading, a decline of 35% from the average session volume of 587,716 shares. The stock had previously closed at $41.72.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. 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. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research report on Monday, April 20th. Needham & Company LLC assumed coverage on Alpha and Omega Semiconductor in a research note on Friday, May 1st. They set a "buy" rating and a $50.00 target price on the stock. Stifel Nicolaus reduced their target price on Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating for the company in a report on Friday, February 6th. Finally, Wall Street Zen upgraded Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Saturday, May 9th. 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 stock. According to data from MarketBeat.com, Alpha and Omega Semiconductor presently has a consensus rating of "Hold" and an average price target of $30.50.

Alpha and Omega Semiconductor Price Performance

The company has a market cap of $1.41 billion, a PE ratio of -13.22 and a beta of 2.58. The business has a 50-day moving average of $32.07 and a 200 day moving average of $24.93.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last released 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. The firm had revenue of $163.79 million during the quarter, compared to analyst estimates of $160.07 million. Alpha and Omega Semiconductor had a negative net margin of 15.51% and a negative return on equity of 4.30%. The business's revenue for the quarter was down .5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.10) EPS. On average, equities analysts predict that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Yifan Liang sold 8,625 shares of the firm's stock in a transaction on Friday, April 17th. The stock was sold at an average price of $35.00, for a total value of $301,875.00. Following the transaction, the chief financial officer directly owned 270,003 shares of the company's stock, valued at approximately $9,450,105. This trade represents a 3.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Chunping Chang sold 14,884 shares of Alpha and Omega Semiconductor 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 transaction, the chief executive officer owned 635,901 shares in the company, valued at $21,919,507.47. This trade represents a 2.29% decrease in their ownership of the stock. 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 have sold 59,860 shares of company stock valued at $1,913,960. Company insiders own 16.70% of the company's stock.

Institutional Investors Weigh In On Alpha and Omega Semiconductor

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Alpha and Omega Semiconductor by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 14,167 shares of the semiconductor company's stock valued at $352,000 after purchasing an additional 624 shares in the last quarter. Royal Bank of Canada raised its position in shares of Alpha and Omega Semiconductor by 9.2% during the 4th quarter. Royal Bank of Canada now owns 8,938 shares of the semiconductor company's stock valued at $177,000 after purchasing an additional 755 shares during the period. Deutsche Bank AG lifted its stake in shares of Alpha and Omega Semiconductor by 1.8% during the 4th quarter. Deutsche Bank AG now owns 47,059 shares of the semiconductor company's stock valued at $932,000 after buying an additional 844 shares in the last quarter. Hantz Financial Services Inc. boosted its holdings in 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 buying an additional 895 shares during the period. Finally, Franklin Resources Inc. boosted its holdings in Alpha and Omega Semiconductor by 5.5% in the 4th quarter. Franklin Resources Inc. now owns 20,281 shares of the semiconductor company's stock worth $402,000 after buying an additional 1,053 shares during the period. 78.97% of the stock is 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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