Applied Optoelectronics (NASDAQ:AAOI) Coverage Initiated by Analysts at Needham & Company LLC

Key Points

• Needham & Company LLC has initiated coverage on Applied Optoelectronics (NASDAQ:AAOI), setting a "buy" rating and a target price of $32.00, indicating a potential upside of 23.84% from its previous close.
• The stock has seen varying ratings from several analysts, with four analysts rating it as a "hold" and four as a "buy," resulting in a consensus rating of "Moderate Buy."
• Applied Optoelectronics reported a 145.5% year-over-year revenue increase with earnings of ($0.02) per share, surpassing analysts' expectations.

Equities researchers at Needham & Company LLC assumed coverage on shares of Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) in a research report issued on Friday,Benzinga reports. The firm set a "buy" rating and a $32.00 price target on the semiconductor company's stock. Needham & Company LLC's target price would suggest a potential upside of 23.84% from the stock's previous close.

Several other research analysts have also commented on AAOI. Rosenblatt Securities lifted their target price on Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. Wolfe Research began coverage on Applied Optoelectronics in a research report on Tuesday, July 8th. They issued a "peer perform" rating for the company. Raymond James Financial decreased their target price on Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research report on Saturday, June 21st. Finally, Northland Securities lifted their target price on Applied Optoelectronics to $50.00 and gave the stock a "buy" rating in a research report on Friday, June 13th. Four analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $26.00.

Applied Optoelectronics Price Performance

Shares of NASDAQ AAOI opened at $25.84 on Friday. Applied Optoelectronics has a fifty-two week low of $6.70 and a fifty-two week high of $44.50. The business has a 50 day moving average price of $22.04 and a two-hundred day moving average price of $21.21. The company has a quick ratio of 1.34, a current ratio of 1.88 and a debt-to-equity ratio of 0.47. The firm has a market cap of $1.44 billion, a PE ratio of -6.69 and a beta of 2.78.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The semiconductor company reported ($0.02) earnings per share for the quarter, beating analysts' consensus estimates of ($0.04) by $0.02. Applied Optoelectronics had a negative return on equity of 15.40% and a negative net margin of 55.98%. The firm had revenue of $99.86 million during the quarter, compared to analyst estimates of $99.37 million. During the same quarter last year, the firm earned ($0.31) EPS. Applied Optoelectronics's quarterly revenue was up 145.5% on a year-over-year basis. Sell-side analysts expect that Applied Optoelectronics will post -1.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Stefan J. Murry sold 3,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $27.46, for a total value of $82,380.00. Following the sale, the chief financial officer owned 318,036 shares of the company's stock, valued at approximately $8,733,268.56. This trade represents a 0.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin bought 21,200 shares of the business's stock in a transaction on Tuesday, May 13th. The shares were acquired at an average cost of $18.22 per share, for a total transaction of $386,264.00. Following the purchase, the chief executive officer directly owned 1,659,025 shares in the company, valued at $30,227,435.50. This represents a 1.29% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders sold 40,263 shares of company stock worth $787,050. Company insiders own 4.50% of the company's stock.

Institutional Trading of Applied Optoelectronics

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its stake in Applied Optoelectronics by 11.0% during the 4th quarter. Vanguard Group Inc. now owns 2,429,418 shares of the semiconductor company's stock valued at $89,548,000 after acquiring an additional 241,594 shares in the last quarter. SG Americas Securities LLC bought a new stake in Applied Optoelectronics during the 1st quarter valued at $370,000. China Universal Asset Management Co. Ltd. raised its stake in Applied Optoelectronics by 31.1% during the 1st quarter. China Universal Asset Management Co. Ltd. now owns 40,000 shares of the semiconductor company's stock valued at $614,000 after acquiring an additional 9,500 shares in the last quarter. Polymer Capital Management HK LTD bought a new stake in Applied Optoelectronics during the 4th quarter valued at $1,102,000. Finally, Bank of America Corp DE raised its stake in Applied Optoelectronics by 1,058.6% during the 4th quarter. Bank of America Corp DE now owns 339,550 shares of the semiconductor company's stock valued at $12,516,000 after acquiring an additional 310,243 shares in the last quarter. Institutional investors own 61.72% of the company's stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.

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