Applied Optoelectronics (NASDAQ:AAOI) Shares Down 8.7% - What's Next?

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

Wall Street Analyst Weigh In

Several research analysts recently weighed in on AAOI shares. Rosenblatt Securities lifted their price objective on shares of 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 shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, June 21st. Wolfe Research started coverage on shares of Applied Optoelectronics in a report on Tuesday, July 8th. They issued a "peer perform" rating on the stock. Northland Securities raised their target price on shares of Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research note on Friday, June 13th. Finally, Raymond James Financial decreased their target price on shares of Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating for the company in a research note on Friday, May 9th. Four investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $24.80.

Applied Optoelectronics Price Performance

The company has a quick ratio of 1.34, a current ratio of 1.88 and a debt-to-equity ratio of 0.47. The business has a 50-day moving average price of $21.58 and a two-hundred day moving average price of $21.20. The company has a market capitalization of $1.48 billion, a price-to-earnings ratio of -6.89 and a beta of 2.78.

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

Insider Buying and Selling

In other news, insider David C. Kuo sold 11,426 shares of the business's stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $19.10, for a total value of $218,236.60. Following the completion of the sale, the insider directly owned 153,900 shares of the company's stock, valued at approximately $2,939,490. The trade was a 6.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Chih-Hsiang (Thompson) Lin bought 21,200 shares of the business's stock in a transaction that occurred on Tuesday, May 13th. The stock was purchased at an average cost of $18.22 per share, for a total transaction of $386,264.00. Following the completion of the transaction, the chief executive officer directly owned 1,659,025 shares in the company, valued at approximately $30,227,435.50. This trade represents a 1.29% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 40,263 shares of company stock valued at $787,050. Company insiders own 4.50% of the company's stock.

Institutional Trading of Applied Optoelectronics

Several hedge funds and other institutional investors have recently bought and sold shares of the business. AlphaQuest LLC lifted its stake in Applied Optoelectronics by 243.9% during the 1st quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock valued at $35,000 after acquiring an additional 1,629 shares during the period. Meeder Asset Management Inc. acquired a new stake in shares of Applied Optoelectronics during the fourth quarter valued at about $38,000. GAMMA Investing LLC lifted its position 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 buying an additional 825 shares during the last quarter. Sterling Capital Management LLC increased its holdings in Applied Optoelectronics by 858.2% during 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 in the last quarter. Finally, Canada Pension Plan Investment Board purchased a new stake in shares of Applied Optoelectronics in the fourth quarter worth about $63,000. 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.

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