Applied Optoelectronics (NASDAQ:AAOI) Trading Down 8.7% - Time to Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) dropped 8.7% during trading on Tuesday . The company traded as low as $25.50 and last traded at $25.78. Approximately 1,465,545 shares changed hands during mid-day trading, a decline of 61% from the average daily volume of 3,746,915 shares. The stock had previously closed at $28.23.

Analyst Upgrades and Downgrades

Several brokerages recently commented on AAOI. Rosenblatt Securities increased their price objective on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. Wall Street Zen upgraded shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, June 21st. Northland Securities raised 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 Applied Optoelectronics in a research report on Friday. They issued a "buy" rating and a $32.00 price objective on the stock. Finally, Wolfe Research initiated coverage on Applied Optoelectronics in a research note on Tuesday, July 8th. They set a "peer perform" rating on the stock. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $26.00.

Applied Optoelectronics Stock Performance

The business has a 50-day moving average of $22.35 and a 200 day moving average of $21.11. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.88 and a quick ratio of 1.34. The company has a market cap of $1.51 billion, a PE ratio of -7.03 and a beta of 2.78.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The semiconductor company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.04) by $0.02. Applied Optoelectronics had a negative net margin of 55.98% and a negative return on equity of 15.40%. The company had revenue of $99.86 million for the quarter, compared to the consensus estimate of $99.37 million. During the same quarter last year, the firm posted ($0.31) earnings per share. The firm's revenue was up 145.5% compared to the same quarter last year. Equities research analysts anticipate 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 dated Tuesday, May 13th. The shares were purchased at an average cost of $18.22 per share, for a total transaction of $386,264.00. Following the transaction, the chief executive officer directly owned 1,659,025 shares of the company's stock, valued at approximately $30,227,435.50. This trade represents a 1.29% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider David C. Kuo sold 11,426 shares of Applied Optoelectronics 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 owned 153,900 shares in the company, valued at approximately $2,939,490. This trade represents a 6.91% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 40,263 shares of company stock valued at $787,050. Insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Applied Optoelectronics

A number of institutional investors and hedge funds have recently bought and sold shares of AAOI. AlphaQuest LLC grew its position 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 purchasing an additional 1,629 shares in the last quarter. Meeder Asset Management Inc. bought a new position in Applied Optoelectronics in the 4th quarter worth approximately $38,000. GAMMA Investing LLC grew its holdings in Applied Optoelectronics by 85.9% during the 2nd quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock valued at $46,000 after buying an additional 825 shares in the last quarter. Sterling Capital Management LLC raised its position 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 valued at $47,000 after buying an additional 1,150 shares during the last quarter. Finally, CWM LLC lifted its holdings in shares of Applied Optoelectronics by 175.5% in the second quarter. CWM LLC now owns 2,218 shares of the semiconductor company's stock worth $57,000 after buying an additional 1,413 shares in the last quarter. 61.72% of the stock is owned by institutional investors.

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.