Alpha and Omega Semiconductor (NASDAQ:AOSL) Stock Price Up 6.5% - Still a Buy?

Key Points

• Shares jumped 6.5% to $42.49 on Friday on light volume (~216,713 shares), despite trading well above Wall Street's consensus target of $24.
• Alpha and Omega missed quarterly EPS (reported ($0.16) vs. ($0.08) expected), has negative net margin and ROE, and analysts forecast -1.65 EPS for the fiscal year.
• Insiders—including the CEO and CFO—sold shares under pre-arranged Rule 10b5‑1 plans (59,860 shares in the last three months); insiders now own 16.7% of the company.

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL - Get Free Report) shares rose 6.5% on Friday . The company traded as high as $43.25 and last traded at $42.49. Approximately 216,713 shares changed hands during trading, a decline of 50% from the average daily volume of 433,182 shares. The stock had previously closed at $39.88.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. Wall Street Zen cut shares of Alpha and Omega Semiconductor from a "hold" rating to a "strong sell" rating in a research note on Saturday, February 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research report on Monday. B. Riley Financial upped their target price on shares of Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the company a "neutral" rating in a research note on Monday, April 13th. Zacks Research upgraded shares of Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Finally, Stifel Nicolaus decreased their price objective on Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating on the stock in a report on Friday, February 6th. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Alpha and Omega Semiconductor presently has a consensus rating of "Hold" and a consensus target price of $24.00.

Alpha and Omega Semiconductor Trading Up 13.1%

The firm has a market cap of $1.34 billion, a P/E ratio of -12.97 and a beta of 1.94. The company's fifty day moving average price is $24.33 and its two-hundred day moving average price is $23.37.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The semiconductor company reported ($0.16) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). Alpha and Omega Semiconductor had a negative net margin of 15.06% and a negative return on equity of 3.78%. The firm had revenue of $162.26 million during the quarter, compared to analyst estimates of $160.67 million. During the same quarter last year, the firm earned $0.09 earnings per share. Alpha and Omega Semiconductor's quarterly revenue was down 6.3% on a year-over-year basis. On average, analysts predict that Alpha and Omega Semiconductor Limited will post -1.65 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Stephen Chunping Chang sold 14,884 shares of Alpha and Omega Semiconductor stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $34.47, for a total value 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 $21,919,507.47. The trade was a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, 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 stock was sold at an average price of $35.00, for a total transaction of $301,875.00. Following the transaction, the chief financial officer owned 270,003 shares in the company, valued at approximately $9,450,105. This trade represents a 3.10% 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. In the last three months, insiders have sold 59,860 shares of company stock valued at $1,913,960. 16.70% of the stock is owned by corporate insiders.

Institutional Trading of Alpha and Omega Semiconductor

Hedge funds have recently modified their holdings of the stock. SG Americas Securities LLC bought a new stake in shares of Alpha and Omega Semiconductor during the third quarter worth $3,559,000. Acuitas Investments LLC lifted its position in Alpha and Omega Semiconductor by 38.6% during the 3rd quarter. Acuitas Investments LLC now owns 240,920 shares of the semiconductor company's stock valued at $6,736,000 after purchasing an additional 67,100 shares during the period. JPMorgan Chase & Co. boosted its stake 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 valued at $4,441,000 after purchasing an additional 66,723 shares during the last quarter. Massachusetts Financial Services Co. MA acquired a new stake in shares of Alpha and Omega Semiconductor during the 4th quarter worth approximately $563,000. Finally, Numerai GP LLC raised its stake in shares of Alpha and Omega Semiconductor by 37.6% during the third quarter. Numerai GP LLC now owns 89,695 shares of the semiconductor company's stock worth $2,508,000 after buying an additional 24,492 shares during the last quarter. 78.97% of the stock is owned by institutional investors.

Alpha and Omega Semiconductor Company Profile

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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