Applied Optoelectronics (NASDAQ:AAOI) Price Target Raised to $15.00 at B. Riley

Key Points

• B. Riley raised the price target for Applied Optoelectronics from $13.00 to $15.00, maintaining a "neutral" rating, which suggests a potential downside of 34.55% from the stock's previous close.
• Applied Optoelectronics reported a quarterly loss, with earnings per share at ($0.16), which missed analysts' estimates and showed a significant year-over-year revenue increase of 137.9%.
• Insider activity includes CEO Chih-Hsiang Lin acquiring 21,200 shares at an average price of $18.22 per share, indicating confidence in the company’s outlook.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) had its price target upped by investment analysts at B. Riley from $13.00 to $15.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "neutral" rating on the semiconductor company's stock. B. Riley's target price would suggest a potential downside of 30.52% from the stock's previous close.

Several other research analysts have also weighed in on AAOI. Northland Securities increased their price objective on shares of Applied Optoelectronics to $50.00 and gave the stock a "buy" rating in a report on Friday, June 13th. Rosenblatt Securities increased their price objective on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a report on Thursday, June 26th. Wolfe Research started coverage on shares of Applied Optoelectronics in a report on Tuesday, July 8th. They set a "peer perform" rating on the stock. Wall Street Zen upgraded shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, June 21st. Finally, Raymond James Financial cut their price target on shares of Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $31.20.

Applied Optoelectronics Trading Down 3.3%

Shares of Applied Optoelectronics stock traded down $0.74 during mid-day trading on Friday, hitting $21.59. 12,203,175 shares of the stock were exchanged, compared to its average volume of 4,435,033. Applied Optoelectronics has a twelve month low of $7.60 and a twelve month high of $44.50. The stock has a market capitalization of $1.20 billion, a price-to-earnings ratio of -6.43 and a beta of 2.72. The company has a 50-day simple moving average of $23.35 and a 200 day simple moving average of $20.47. The company has a current ratio of 1.88, a quick ratio of 1.34 and a debt-to-equity ratio of 0.47.

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 (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.08). Applied Optoelectronics had a negative return on equity of 12.45% and a negative net margin of 42.29%. 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 prior year, the business earned ($0.28) earnings per share. Applied Optoelectronics's revenue for the quarter was up 137.9% on a year-over-year basis. Research analysts forecast that Applied Optoelectronics will post -1.18 EPS for the current year.

Insider Buying and Selling at Applied Optoelectronics

In other news, insider David C. Kuo sold 11,426 shares of the business's stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $19.10, for a total transaction of $218,236.60. Following the transaction, the insider directly 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 available at this hyperlink. Also, insider Hung-Lun (Fred) Chang sold 23,837 shares of the business's stock in a transaction on Tuesday, May 13th. The stock was sold at an average price of $19.06, for a total transaction of $454,333.22. Following the transaction, the insider directly owned 278,842 shares in the company, valued at approximately $5,314,728.52. The trade was a 7.88% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 40,263 shares of company stock worth $787,050. 4.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Cetera Investment Advisers acquired a new position in shares of Applied Optoelectronics during the second quarter worth $377,000. Police & Firemen s Retirement System of New Jersey lifted its position in shares of Applied Optoelectronics by 38.1% during the second quarter. Police & Firemen s Retirement System of New Jersey now owns 12,225 shares of the semiconductor company's stock worth $314,000 after purchasing an additional 3,372 shares in the last quarter. Geode Capital Management LLC increased its stake 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 during the last quarter. PNC Financial Services Group Inc. increased its stake in shares of Applied Optoelectronics by 3,828.0% in the second quarter. PNC Financial Services Group Inc. now owns 8,838 shares of the semiconductor company's stock worth $227,000 after buying an additional 8,613 shares during the last quarter. Finally, ProShare Advisors LLC bought a new stake in shares of Applied Optoelectronics in the second quarter worth $283,000. 61.72% of the stock is owned by institutional investors and hedge funds.

About Applied Optoelectronics

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.