Applied Optoelectronics (NASDAQ:AAOI) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Applied Optoelectronics (NASDAQ:AAOI) has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a negative outlook on the stock's performance.
• The company's quarterly earnings report revealed an EPS of ($0.16), missing expectations and reflecting a negative net margin of 42.29% despite a year-over-year revenue increase of 137.9%.
• Shares of Applied Optoelectronics are currently trading at $21.59 with analysts providing a consensus rating of "Hold" and an average price target of $31.20.

Wall Street Zen cut shares of Applied Optoelectronics (NASDAQ:AAOI - Free Report) from a hold rating to a sell rating in a research note released on Saturday.

AAOI has been the topic of a number of other reports. Raymond James Financial set a $25.00 target price on Applied Optoelectronics and gave the stock an "outperform" rating in a research report on Friday. Rosenblatt Securities raised their price objective on Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a research note on Thursday, June 26th. Needham & Company LLC initiated coverage on Applied Optoelectronics in a research report on Friday, July 25th. They issued a "buy" rating and a $32.00 target price on the stock. Wolfe Research began coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. Finally, Northland Securities lifted their price target on shares of Applied Optoelectronics to $50.00 and gave the stock a "buy" rating in a research note on Friday, June 13th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $27.20.

Applied Optoelectronics Stock Down 1.4%

Shares of AAOI traded down $0.33 during mid-day trading on Friday, reaching $22.46. 2,662,923 shares of the stock traded hands, compared to its average volume of 4,397,316. The stock has a fifty day simple moving average of $23.58 and a 200 day simple moving average of $20.34. Applied Optoelectronics has a 12-month low of $7.72 and a 12-month high of $44.50. The company has a quick ratio of 1.47, a current ratio of 2.11 and a debt-to-equity ratio of 0.36. The firm has a market cap of $1.40 billion, a price-to-earnings ratio of -6.72 and a beta of 2.72.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The firm had revenue of $102.95 million for the quarter, compared to analyst estimates of $104.96 million. During the same period in the previous year, the business posted ($0.28) earnings per share. Applied Optoelectronics's revenue for the quarter was up 137.9% on a year-over-year basis. Sell-side analysts expect that Applied Optoelectronics will post -1.18 EPS for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 3,000 shares of the company'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 transaction of $82,380.00. Following the sale, the chief financial officer directly owned 318,036 shares of the company's stock, valued at approximately $8,733,268.56. This represents a 0.93% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Company insiders own 4.50% of the company's stock.

Institutional Trading of Applied Optoelectronics

Several institutional investors have recently added to or reduced their stakes in AAOI. JPMorgan Chase & Co. boosted its holdings in shares of Applied Optoelectronics by 1,288.6% in the 4th quarter. JPMorgan Chase & Co. now owns 293,906 shares of the semiconductor company's stock valued at $10,833,000 after buying an additional 272,741 shares during the period. Alliancebernstein L.P. lifted its holdings in Applied Optoelectronics by 183.2% in the fourth quarter. Alliancebernstein L.P. now owns 41,089 shares of the semiconductor company's stock worth $1,515,000 after acquiring an additional 26,579 shares during the last quarter. Geode Capital Management LLC boosted its stake in Applied Optoelectronics by 7.7% in the fourth quarter. Geode Capital Management LLC now owns 979,769 shares of the semiconductor company's stock valued at $36,123,000 after acquiring an additional 70,210 shares during the period. Russell Investments Group Ltd. boosted its stake in Applied Optoelectronics by 3,718.6% in the fourth quarter. Russell Investments Group Ltd. now owns 20,964 shares of the semiconductor company's stock valued at $773,000 after acquiring an additional 20,415 shares during the period. Finally, Raymond James Financial Inc. bought a new position in shares of Applied Optoelectronics during the fourth quarter valued at approximately $6,556,000. 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.