Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 6.7% - Here's What Happened

Key Points

• Applied Optoelectronics experienced a significant stock drop of 6.7%, closing at $20.15 after trading on Monday.
• Analysts have varied ratings on the stock, with a consensus target price of $27.20 and several price targets updated, ranging from $15.00 to $34.00.
• The company reported a negative earnings per share of ($0.16), missing analyst expectations, despite a year-over-year revenue increase of 137.9%.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s share price fell 6.7% during trading on Monday . The stock traded as low as $20.15 and last traded at $20.15. 1,351,524 shares traded hands during trading, a decline of 69% from the average session volume of 4,369,183 shares. The stock had previously closed at $21.59.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Wolfe Research initiated coverage on Applied Optoelectronics in a research note on Tuesday, July 8th. They issued a "peer perform" rating on the stock. Northland Securities set a $30.00 price objective on Applied Optoelectronics in a research note on Friday. Rosenblatt Securities boosted their price objective on Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. Raymond James Financial upped their price target on Applied Optoelectronics from $18.00 to $25.00 and gave the company an "outperform" rating in a research report on Friday. Finally, B. Riley reaffirmed a "neutral" rating and issued a $15.00 price target (up from $13.00) on shares of Applied Optoelectronics in a report on Friday. One analyst has rated the stock with a sell rating, two have given a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $27.20.

Applied Optoelectronics Stock Down 2.5%

The company has a debt-to-equity ratio of 0.36, a current ratio of 2.11 and a quick ratio of 1.47. The stock has a market capitalization of $1.17 billion, a P/E ratio of -6.20 and a beta of 2.72. The stock has a fifty day moving average price of $23.35 and a 200 day moving average price of $20.39.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its earnings results on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The company had revenue of $102.95 million for the quarter, compared to analysts' expectations of $104.96 million. During the same quarter in the prior year, the firm posted ($0.28) earnings per share. Applied Optoelectronics's quarterly revenue was up 137.9% on a year-over-year basis. On average, research analysts forecast that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

Insider Buying and Selling at Applied Optoelectronics

In related news, insider David C. Kuo sold 11,426 shares of the company'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 transaction, the insider owned 153,900 shares in the company, valued at $2,939,490. This represents a 6.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Stefan J. Murry sold 3,000 shares of the stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $27.46, for a total transaction of $82,380.00. Following the completion of the sale, the chief financial officer directly owned 318,036 shares of the company's stock, valued at approximately $8,733,268.56. This trade represents a 0.93% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 40,263 shares of company stock valued at $787,050. 4.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of the company. CloudAlpha Capital Management Limited Hong Kong boosted its holdings in Applied Optoelectronics by 410.7% during the second quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company's stock worth $36,197,000 after buying an additional 1,133,115 shares in the last quarter. Nomura Holdings Inc. acquired a new stake in shares of Applied Optoelectronics in the fourth quarter worth $31,331,000. Jefferies Financial Group Inc. acquired a new stake in shares of Applied Optoelectronics in the fourth quarter worth $23,354,000. Assenagon Asset Management S.A. grew its holdings in Applied Optoelectronics by 182.7% during the 1st quarter. Assenagon Asset Management S.A. now owns 976,520 shares of the semiconductor company's stock valued at $14,990,000 after purchasing an additional 631,128 shares in the last quarter. Finally, Alyeska Investment Group L.P. acquired a new position in Applied Optoelectronics during the 1st quarter worth $7,455,000. 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.

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