Applied Optoelectronics (NASDAQ:AAOI) Sees Unusually-High Trading Volume on Analyst Upgrade

Key Points

• Applied Optoelectronics (NASDAQ:AAOI) experienced a notable trading volume increase after B. Riley raised their price target from $13.00 to $15.00, with 9.25 million shares traded, representing a 113% increase from the previous day.
• The stock received multiple analyst ratings, with a consensus rating of "Moderate Buy" and an average target price of $27.50, indicating varied analyst sentiment.
• In recent insider activity, CFO Stefan J. Murry sold 3,000 shares while CEO Chih-Hsiang Lin purchased 21,200 shares, reflecting differing perspectives on the company's future.

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) saw strong trading volume on Friday after B. Riley raised their price target on the stock from $13.00 to $15.00. B. Riley currently has a neutral rating on the stock. 9,250,403 shares were traded during trading, an increase of 113% from the previous session's volume of 4,347,026 shares.The stock last traded at $21.39 and had previously closed at $22.33.

Several other equities research analysts have also commented on AAOI. Wall Street Zen raised shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a research report on Saturday, June 21st. Northland Securities upped their price target on shares of Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research report on Friday, June 13th. Needham & Company LLC assumed coverage on shares of Applied Optoelectronics in a research report on Friday, July 25th. They set a "buy" rating and a $32.00 price target for the company. Raymond James Financial reduced their price target on shares of Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. Finally, Wolfe Research assumed coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. One equities 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's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $31.20.

Insider Activity

In related news, insider Hung-Lun (Fred) Chang sold 23,837 shares of the stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $19.06, for a total value of $454,333.22. Following the completion of the sale, the insider directly owned 278,842 shares of the company's stock, valued at approximately $5,314,728.52. This represents a 7.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Chih-Hsiang (Thompson) Lin acquired 21,200 shares of the business's stock in a transaction on Tuesday, May 13th. The shares were bought at an average cost of $18.22 per share, with a total value of $386,264.00. Following the completion of the acquisition, the chief executive officer owned 1,659,025 shares in the company, 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 90 days, insiders sold 40,263 shares of company stock valued at $787,050. 4.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Institutional investors have recently added to or reduced their stakes in the stock. Cetera Investment Advisers bought a new position in shares of Applied Optoelectronics during the 2nd quarter valued at approximately $377,000. Police & Firemen s Retirement System of New Jersey lifted its position in Applied Optoelectronics by 38.1% in 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 buying an additional 3,372 shares during the last quarter. Geode Capital Management LLC lifted its position in 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. lifted its position in 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 Applied Optoelectronics in the second quarter worth $283,000. 61.72% of the stock is owned by hedge funds and other institutional investors.

Applied Optoelectronics Stock Performance

The company has a market capitalization of $1.20 billion, a P/E ratio of -6.43 and a beta of 2.72. The business has a 50-day moving average of $23.35 and a 200-day moving average of $20.47. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.88 and a quick ratio of 1.34.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). The company had revenue of $102.95 million during the quarter, compared to the consensus estimate of $104.96 million. Applied Optoelectronics had a negative return on equity of 12.45% and a negative net margin of 42.29%. The firm's quarterly revenue was up 137.9% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.28) earnings per share. On average, sell-side analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

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.