Applied Optoelectronics (NASDAQ:AAOI) Downgraded 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 downgraded shares of Applied Optoelectronics (NASDAQ:AAOI - Free Report) from a hold rating to a sell rating in a research report released on Saturday morning.

A number of other equities research analysts have also weighed in on the company. Raymond James Financial set a $25.00 price objective on Applied Optoelectronics and gave the stock an "outperform" rating in a research report on Friday. B. Riley lifted their price objective on Applied Optoelectronics from $13.00 to $15.00 and gave the company a "neutral" rating in a research note on Friday. Northland Securities lifted their price objective on Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research note on Friday, June 13th. Needham & Company LLC began coverage on Applied Optoelectronics in a research note on Friday, July 25th. They issued a "buy" rating and a $32.00 price target for the company. Finally, Wolfe Research started coverage on Applied Optoelectronics in a research note on Tuesday, July 8th. They issued a "peer perform" rating for the company. One analyst has rated the stock with a sell rating, two have given a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $31.20.

Applied Optoelectronics Price Performance

Shares of Applied Optoelectronics stock traded down $0.74 during trading on Friday, hitting $21.59. 12,203,175 shares of the stock traded hands, compared to its average volume of 4,888,575. The firm's fifty day moving average is $23.35 and its 200-day moving average is $20.39. The company has a quick ratio of 1.47, a current ratio of 2.11 and a debt-to-equity ratio of 0.36. Applied Optoelectronics has a 52 week low of $7.60 and a 52 week high of $44.50. The stock has a market cap of $1.35 billion, a price-to-earnings ratio of -6.43 and a beta of 2.72.

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

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, insider David C. Kuo sold 11,426 shares of the business's stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $19.10, for a total transaction of $218,236.60. Following the completion of the sale, the insider owned 153,900 shares of the company's stock, valued at approximately $2,939,490. The trade was a 6.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Chih-Hsiang (Thompson) Lin acquired 21,200 shares of the stock in a transaction dated Tuesday, May 13th. The stock was acquired at an average price of $18.22 per share, for a total transaction of $386,264.00. Following the completion of the transaction, the chief executive officer directly owned 1,659,025 shares of the company's stock, valued at approximately $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. Over the last ninety days, insiders sold 40,263 shares of company stock worth $787,050. 4.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Several large investors have recently made changes to their positions in the business. Vanguard Group Inc. lifted its position in shares of Applied Optoelectronics by 14.4% in the first quarter. Vanguard Group Inc. now owns 2,779,563 shares of the semiconductor company's stock valued at $42,666,000 after acquiring an additional 350,145 shares in the last quarter. CloudAlpha Capital Management Limited Hong Kong lifted its position in shares of Applied Optoelectronics by 410.7% in the second quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company's stock worth $36,197,000 after buying an additional 1,133,115 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Applied Optoelectronics by 18.8% in the second quarter. Geode Capital Management LLC now owns 1,285,693 shares of the semiconductor company's stock worth $33,034,000 after buying an additional 203,830 shares in the last quarter. Assenagon Asset Management S.A. lifted its position in shares of Applied Optoelectronics by 182.7% in the first quarter. Assenagon Asset Management S.A. now owns 976,520 shares of the semiconductor company's stock worth $14,990,000 after buying an additional 631,128 shares in the last quarter. Finally, Royce & Associates LP lifted its position in shares of Applied Optoelectronics by 15.2% in the first quarter. Royce & Associates LP now owns 876,543 shares of the semiconductor company's stock worth $13,455,000 after buying an additional 115,853 shares in the last quarter. 61.72% of the stock is currently owned by hedge funds and other institutional investors.

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.