Applied Optoelectronics (NASDAQ:AAOI) Sees Strong Trading Volume - Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares saw an uptick in trading volume on Friday . 9,225,606 shares changed hands during mid-day trading, an increase of 163% from the previous session's volume of 3,508,319 shares.The stock last traded at $23.15 and had previously closed at $19.77.

Analyst Ratings Changes

Several research firms have weighed in on AAOI. Wall Street Zen raised shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a research report on Saturday. B. Riley raised shares of Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 price objective on the stock in a report on Friday, March 7th. Rosenblatt Securities upped their target price on Applied Optoelectronics to $30.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Northland Securities raised their target price on Applied Optoelectronics to $50.00 and gave the stock a "buy" rating in a research note on Friday, June 13th. Finally, Raymond James Financial dropped their price target on Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $24.00.

Applied Optoelectronics Price Performance

The stock has a market cap of $1.25 billion, a price-to-earnings ratio of -5.85 and a beta of 2.64. The stock's 50 day moving average price is $15.73 and its two-hundred day moving average price is $22.45. The company has a quick ratio of 1.34, a current ratio of 1.88 and a debt-to-equity ratio of 0.47.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The semiconductor company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.02. The company had revenue of $99.86 million for the quarter, compared to analyst estimates of $99.37 million. Applied Optoelectronics had a negative net margin of 55.98% and a negative return on equity of 15.40%. The firm's revenue was up 145.5% on a year-over-year basis. During the same period in the prior year, the company earned ($0.31) earnings per share. Equities research analysts forecast that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Chih-Hsiang (Thompson) Lin acquired 21,200 shares of the firm's stock in a transaction on 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 now owns 1,659,025 shares in the company, valued at approximately $30,227,435.50. The trade was a 1.29% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Stefan J. Murry sold 2,000 shares of the firm's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $16.05, for a total value of $32,100.00. Following the sale, the chief financial officer now owns 321,036 shares in the company, valued at $5,152,627.80. This trade represents a 0.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 39,263 shares of company stock valued at $726,570 over the last ninety days. Company insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds have recently bought and sold shares of the business. Meeder Asset Management Inc. acquired a new position in shares of Applied Optoelectronics during the 4th quarter worth approximately $38,000. Sterling Capital Management LLC grew its stake in Applied Optoelectronics by 858.2% in the 4th quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company's stock valued at $47,000 after acquiring an additional 1,150 shares during the period. Canada Pension Plan Investment Board purchased a new stake in Applied Optoelectronics in the 4th quarter worth $63,000. AlphaQuest LLC raised its position in Applied Optoelectronics by 243.9% during the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock worth $35,000 after acquiring an additional 1,629 shares during the period. Finally, Summit Investment Advisors Inc. lifted its holdings in Applied Optoelectronics by 17.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company's stock valued at $157,000 after purchasing an additional 637 shares in the last quarter. Hedge funds and other 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.