Applied Optoelectronics (NASDAQ:AAOI) Trading Down 8% - Here's Why

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) were down 8% during mid-day trading on Wednesday . The company traded as low as $27.05 and last traded at $26.89. Approximately 1,329,797 shares traded hands during mid-day trading, a decline of 64% from the average daily volume of 3,730,814 shares. The stock had previously closed at $29.24.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on AAOI shares. Rosenblatt Securities raised their target price on Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a research note on Thursday, June 26th. Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research note on Saturday, June 21st. 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. Wolfe Research initiated coverage on Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating on the stock. Finally, Raymond James Financial cut their price target on Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. Four research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, Applied Optoelectronics has an average rating of "Hold" and an average price target of $24.80.

Applied Optoelectronics Trading Down 2.7%

The company has a current ratio of 1.88, a quick ratio of 1.34 and a debt-to-equity ratio of 0.47. The company has a market capitalization of $1.59 billion, a price-to-earnings ratio of -7.42 and a beta of 2.78. The company has a fifty day moving average of $21.58 and a 200-day moving average of $21.30.

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

Insider Activity

In related news, insider David C. Kuo sold 11,426 shares of the stock in a transaction on Wednesday, May 14th. The stock was sold at an average price of $19.10, for a total value of $218,236.60. Following the transaction, the insider owned 153,900 shares of the company's stock, valued at $2,939,490. This represents a 6.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Hung-Lun (Fred) Chang sold 23,837 shares of the stock in a transaction 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 transaction, the insider directly owned 278,842 shares in the company, valued at $5,314,728.52. This trade represents a 7.88% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 40,263 shares of company stock worth $787,050 over the last three months. Insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently bought and sold shares of the stock. Meeder Asset Management Inc. acquired a new position in Applied Optoelectronics in the fourth quarter valued at $38,000. Sterling Capital Management LLC boosted its stake in shares of Applied Optoelectronics by 858.2% during the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company's stock worth $47,000 after buying an additional 1,150 shares during the period. Canada Pension Plan Investment Board acquired a new stake in shares of Applied Optoelectronics during the fourth quarter worth about $63,000. GAMMA Investing LLC boosted its stake in shares of Applied Optoelectronics by 85.9% during the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock worth $46,000 after buying an additional 825 shares during the period. Finally, AlphaQuest LLC boosted its stake in shares of 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 buying an additional 1,629 shares during the period. Institutional investors and hedge funds own 61.72% of the company's stock.

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.