Applied Optoelectronics (NASDAQ:AAOI) Sees Large Volume Increase Following 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.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) saw an uptick in trading volume on Friday after Rosenblatt Securities raised their price target on the stock from $30.00 to $34.00. Rosenblatt Securities currently has a buy rating on the stock. 9,250,403 shares changed hands 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 analysts have also recently weighed in on the company. B. Riley raised Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 price target on the stock in a report on Friday, March 7th. Northland Securities raised their price target on Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a report on Friday, June 13th. Wall Street Zen raised Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, June 21st. Finally, Raymond James Financial lowered their price target on Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a report on Friday, May 9th. 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 stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $27.20.

Insider Transactions at Applied Optoelectronics

In related news, insider David C. Kuo sold 11,426 shares of the firm'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 transaction, the insider directly owned 153,900 shares of the company's stock, valued at approximately $2,939,490. This trade represents a 6.91% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Stefan J. Murry sold 3,000 shares of the firm's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $27.46, for a total value of $82,380.00. Following the transaction, the chief financial officer directly owned 318,036 shares in the company, valued at approximately $8,733,268.56. This represents a 0.93% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 16,426 shares of company stock worth $332,717. 4.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Several institutional investors and hedge funds have recently bought and sold shares of AAOI. Nisa Investment Advisors LLC lifted its position in shares of Applied Optoelectronics by 497.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company's stock worth $25,000 after purchasing an additional 801 shares during the period. AlphaQuest LLC lifted its holdings in Applied Optoelectronics by 243.9% in the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock worth $35,000 after buying an additional 1,629 shares during the period. GAMMA Investing LLC grew its holdings in shares of Applied Optoelectronics by 85.9% during the 2nd quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock worth $46,000 after acquiring an additional 825 shares during the period. Sterling Capital Management LLC raised its position in shares of Applied Optoelectronics by 858.2% in the 4th quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company's stock worth $47,000 after acquiring an additional 1,150 shares in the last quarter. Finally, CWM LLC boosted its position in shares of Applied Optoelectronics by 175.5% during the second quarter. CWM LLC now owns 2,218 shares of the semiconductor company's stock valued at $57,000 after purchasing an additional 1,413 shares in the last quarter. 61.72% of the stock is currently owned by institutional investors.

Applied Optoelectronics Stock Performance

The company has a 50 day moving average of $23.46 and a two-hundred day moving average of $20.32. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.11 and a quick ratio of 1.47. The company has a market capitalization of $1.42 billion, a PE ratio of -6.78 and a beta of 2.72.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $104.96 million. Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The firm's quarterly revenue was up 137.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.28) EPS. As a group, equities research analysts predict that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

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.