Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up - What's Next?

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).

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) gapped up before the market opened 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 traded.

Analyst Ratings Changes

Several research analysts have weighed in on AAOI shares. Needham & Company LLC began coverage on Applied Optoelectronics in a report on Friday, July 25th. They issued a "buy" rating and a $32.00 price target for the company. B. Riley raised their price target on Applied Optoelectronics from $13.00 to $15.00 and gave the stock a "neutral" rating in a research note on Friday. Northland Securities upped their price objective on shares of Applied Optoelectronics to $50.00 and gave the company a "buy" rating in a research note on Friday, June 13th. Rosenblatt Securities raised their target price on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. Finally, Wolfe Research initiated coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. Four equities 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 presently has an average rating of "Moderate Buy" and an average target price of $27.50.

Applied Optoelectronics Price Performance

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 $1.17 billion, a PE ratio of -5.50 and a beta of 2.72. The company has a 50-day moving average price of $23.24 and a two-hundred day moving average price of $20.62.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 55.98% and a negative return on equity of 15.40%. The firm had revenue of $102.95 million during the quarter, compared to analyst estimates of $104.96 million. During the same period last year, the business earned ($0.28) EPS. The firm's revenue was up 137.9% compared to the same quarter last year. Sell-side analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Transactions at Applied Optoelectronics

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

Institutional Trading of Applied Optoelectronics

A number of institutional investors and hedge funds have recently made changes to their positions in AAOI. Vanguard Group Inc. increased its position in Applied Optoelectronics by 11.0% in the fourth quarter. Vanguard Group Inc. now owns 2,429,418 shares of the semiconductor company's stock worth $89,548,000 after buying an additional 241,594 shares during the period. SG Americas Securities LLC acquired a new stake in shares of Applied Optoelectronics in the 1st quarter worth about $370,000. Royce & Associates LP lifted its position in Applied Optoelectronics by 15.2% in the 1st quarter. Royce & Associates LP now owns 876,543 shares of the semiconductor company's stock valued at $13,455,000 after purchasing an additional 115,853 shares during the last quarter. China Universal Asset Management Co. Ltd. boosted its stake in Applied Optoelectronics by 31.1% during the 1st quarter. China Universal Asset Management Co. Ltd. now owns 40,000 shares of the semiconductor company's stock valued at $614,000 after purchasing an additional 9,500 shares during the period. Finally, Bank of America Corp DE grew its position in Applied Optoelectronics by 1,058.6% in the 4th quarter. Bank of America Corp DE now owns 339,550 shares of the semiconductor company's stock worth $12,516,000 after purchasing an additional 310,243 shares during the last quarter. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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.