Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up - Here's What Happened

Key Points

• Applied Optoelectronics' stock price opened at $22.71 after closing at $21.53, illustrating a significant pre-trading increase. It last traded at $22.24 with a volume of 679,954 shares.
• Multiple analysts have issued a "buy" rating, with price targets ranging from $30.00 to $50.00, indicating a generally positive outlook despite the stock's struggles.
• The company reported a 145.5% increase in revenue year-over-year, exceeding analysts' expectations, although it had a negative earnings per share of ($0.02).

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $21.53, but opened at $22.71. Applied Optoelectronics shares last traded at $22.24, with a volume of 679,954 shares changing hands.

Analyst Ratings Changes

Several equities analysts have weighed in on AAOI shares. Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research note on Saturday, June 21st. Northland Securities upped their price objective on Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research note on Friday, June 13th. Raymond James Financial lowered their price target on shares of Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. Rosenblatt Securities upped their price target on Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. Finally, Needham & Company LLC assumed coverage on Applied Optoelectronics in a research report on Friday, July 25th. They issued a "buy" rating and a $32.00 price objective on the stock. Four research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $26.00.

Applied Optoelectronics Price Performance

The company has a market cap of $1.25 billion, a PE ratio of -5.82 and a beta of 2.72. The firm's 50-day moving average is $23.13 and its 200-day moving average is $20.68. 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 announced 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. The firm had revenue of $99.86 million for the quarter, compared to the consensus estimate of $99.37 million. Applied Optoelectronics had a negative return on equity of 15.40% and a negative net margin of 55.98%. The company's quarterly revenue was up 145.5% on a year-over-year basis. During the same period in the prior year, the company posted ($0.31) earnings per share. On average, equities analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Insider Buying and Selling

In other Applied Optoelectronics news, insider Hung-Lun (Fred) Chang sold 23,837 shares of Applied Optoelectronics stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $19.06, for a total transaction of $454,333.22. Following the sale, the insider owned 278,842 shares of the company's stock, valued at $5,314,728.52. The trade was a 7.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin purchased 21,200 shares of the company's stock in a transaction dated Tuesday, May 13th. The stock was purchased at an average cost of $18.22 per share, with a total value of $386,264.00. Following the purchase, the chief executive officer owned 1,659,025 shares in the company, valued at approximately $30,227,435.50. This trade represents a 1.29% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders sold 40,263 shares of company stock valued at $787,050. 4.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of AAOI. Nisa Investment Advisors LLC grew its stake in Applied Optoelectronics by 497.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company's stock worth $25,000 after buying an additional 801 shares during the last quarter. AlphaQuest LLC increased its position in shares of 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 acquiring an additional 1,629 shares in the last quarter. GAMMA Investing LLC grew 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 valued at $46,000 after acquiring an additional 825 shares in the last quarter. Sterling Capital Management LLC lifted its stake in 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 purchasing an additional 1,150 shares during the last quarter. Finally, CWM LLC lifted its position in Applied Optoelectronics by 175.5% in the 2nd 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 during the last quarter. 61.72% of the stock is currently owned by hedge funds and other 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.