Applied Optoelectronics (NASDAQ:AAOI) Trading Up 7.2% - Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s share price traded 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 mid-day trading, a decline of 31% from the average session volume of 4,190,262 shares. The stock had previously closed at $23.29.

Analysts Set New Price Targets

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

Applied Optoelectronics Stock 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 firm has a market capitalization of $1.54 billion, a price-to-earnings ratio of -7.19 and a beta of 2.64. The firm's fifty day moving average is $16.85 and its 200 day moving average is $22.31.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its 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 during 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%. The company's revenue was up 145.5% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.31) earnings per share. On average, analysts predict that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 2,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, June 16th. The shares were sold at an average price of $16.05, for a total value of $32,100.00. Following the completion of the sale, the chief financial officer now directly owns 321,036 shares in the company, valued at $5,152,627.80. The trade was a 0.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider David C. Kuo sold 11,426 shares of Applied Optoelectronics stock in a transaction that occurred on 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 now owns 153,900 shares of the company's stock, valued at $2,939,490. This trade represents a 6.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 39,263 shares of company stock worth $726,570 over the last ninety days. 4.50% of the stock is currently owned by insiders.

Institutional Trading of Applied Optoelectronics

A number of institutional investors and hedge funds have recently modified their holdings of the company. Rhumbline Advisers lifted its stake in shares of Applied Optoelectronics by 1.1% in the first quarter. Rhumbline Advisers now owns 61,017 shares of the semiconductor company's stock worth $937,000 after buying an additional 669 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of Applied Optoelectronics by 10.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company's stock worth $393,000 after buying an additional 2,415 shares during the last quarter. Alyeska Investment Group L.P. acquired a new stake in shares of Applied Optoelectronics in the first quarter worth $7,455,000. Twin Tree Management LP lifted its stake in shares of Applied Optoelectronics by 15,573.4% in the first quarter. Twin Tree Management LP now owns 10,031 shares of the semiconductor company's stock worth $154,000 after buying an additional 9,967 shares during the last quarter. Finally, State of Wyoming acquired a new stake in shares of Applied Optoelectronics in the first quarter worth $77,000. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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.