Applied Optoelectronics (NASDAQ:AAOI) Trading Up 7.2% - Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares shot up 7.2% on Wednesday . The stock traded as high as $24.53 and last traded at $24.96. 2,875,772 shares changed hands during trading, a decline of 31% from the average session volume of 4,190,262 shares. The stock had previously closed at $23.29.

Analyst Ratings Changes

Several research firms recently weighed in on AAOI. Raymond James Financial dropped their price objective on shares of Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. Northland Securities upped their price target on shares of Applied Optoelectronics to $50.00 and gave the stock a "buy" rating in a research report on Friday, June 13th. Rosenblatt Securities increased their price objective on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a report on Thursday. B. Riley raised shares of Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 price objective on the stock in a report on Friday, March 7th. Finally, Wall Street Zen raised shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, June 21st. Three analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $24.80.

Applied Optoelectronics Stock Down 5.6%

The firm has a 50 day simple moving average of $17.16 and a two-hundred day simple moving average of $22.26. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.34 and a current ratio of 1.88. The stock has a market cap of $1.46 billion, a P/E ratio of -6.79 and a beta of 2.64.

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

Insider Transactions at Applied Optoelectronics

In related news, insider David C. Kuo sold 11,426 shares of the firm's stock in a transaction that occurred on Wednesday, May 14th. The shares were sold at an average price of $19.10, for a total value of $218,236.60. Following the completion of the transaction, the insider now owns 153,900 shares of the company's stock, valued at approximately $2,939,490. This trade represents a 6.91% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin acquired 21,200 shares of the firm's stock in a transaction that occurred on 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 now directly owns 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. Insiders have sold 39,263 shares of company stock valued at $726,570 in the last quarter. Insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of large investors have recently made changes to their positions in AAOI. Meeder Asset Management Inc. purchased a new position in Applied Optoelectronics during the fourth quarter valued at approximately $38,000. Sterling Capital Management LLC grew its position 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 valued at $47,000 after purchasing an additional 1,150 shares in the last quarter. Canada Pension Plan Investment Board purchased a new position in Applied Optoelectronics during the fourth quarter valued at approximately $63,000. AlphaQuest LLC grew its position in Applied Optoelectronics by 243.9% during the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock valued at $35,000 after purchasing an additional 1,629 shares in the last quarter. Finally, Summit Investment Advisors Inc. grew its position in Applied Optoelectronics by 17.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company's stock valued at $157,000 after purchasing an additional 637 shares in the last quarter. 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.