Needham & Company LLC Begins Coverage on Alpha and Omega Semiconductor (NASDAQ:AOSL)

Key Points

• Needham & Company initiated coverage on Alpha and Omega Semiconductor with a Buy rating and a $50 price target, implying roughly a 15% upside from the current share price.
• The company remains unprofitable—last quarter EPS was ($0.16) versus ($0.08) expected, revenue fell 6.3% year‑over‑year and net margin was -15.06%—while the analyst consensus is a Hold with an average target of $30.50, reflecting mixed analyst views.
• Insiders (including the CEO and CFO) have been selling under pre-arranged Rule 10b5‑1 plans—59,860 shares (~$1.91M) in the last 90 days—though insiders still own 16.7% of the company and institutional investors hold about 79%.

Research analysts at Needham & Company LLC assumed coverage on shares of Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) in a research report issued on Friday, Marketbeat Ratings reports. The firm set a "buy" rating and a $50.00 price target on the semiconductor company's stock. Needham & Company LLC's price objective indicates a potential upside of 15.13% from the stock's current price.

AOSL has been the subject of several other research reports. B. Riley Financial lifted their price objective on Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the company a "neutral" rating in a research report on Monday, April 13th. Stifel Nicolaus decreased their target price on Alpha and Omega Semiconductor from $24.00 to $22.00 and set a "hold" rating on the stock in a report on Friday, February 6th. Wall Street Zen lowered Alpha and Omega Semiconductor from a "hold" rating to a "strong sell" rating in a research note on Saturday, February 7th. Zacks Research raised Alpha and Omega Semiconductor from a "strong sell" rating to a "hold" rating in a report on Monday, April 6th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Alpha and Omega Semiconductor in a research report on Monday, April 20th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $30.50.

Alpha and Omega Semiconductor Stock Up 8.4%

NASDAQ:AOSL opened at $43.43 on Friday. The firm has a market cap of $1.29 billion, a PE ratio of -12.52 and a beta of 1.94. Alpha and Omega Semiconductor has a 12 month low of $17.01 and a 12 month high of $45.97. The company's 50-day moving average price is $26.28 and its two-hundred day moving average price is $23.87.

Alpha and Omega Semiconductor (NASDAQ:AOSL - Get Free Report) last posted its quarterly earnings data on Thursday, February 5th. The semiconductor company reported ($0.16) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.08). The firm had revenue of $162.26 million for the quarter, compared to analyst estimates of $160.67 million. Alpha and Omega Semiconductor had a negative return on equity of 3.78% and a negative net margin of 15.06%.The business's quarterly revenue was down 6.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.09 EPS. On average, research analysts expect that Alpha and Omega Semiconductor will post -1.65 EPS for the current fiscal year.

Insider Transactions at Alpha and Omega Semiconductor

In related news, CFO Yifan Liang sold 8,625 shares of Alpha and Omega Semiconductor stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $35.00, for a total value of $301,875.00. Following the completion of the sale, the chief financial officer directly owned 270,003 shares in the company, valued at $9,450,105. This trade represents a 3.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Chunping Chang sold 14,884 shares of the business's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $34.47, for a total value of $513,051.48. Following the sale, the chief executive officer directly owned 635,901 shares of the company's stock, valued at $21,919,507.47. This represents a 2.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 59,860 shares of company stock worth $1,913,960. Insiders own 16.70% of the company's stock.

Institutional Investors Weigh In On Alpha and Omega Semiconductor

Several institutional investors have recently modified their holdings of the business. Hantz Financial Services Inc. raised its stake in shares of Alpha and Omega Semiconductor by 634.8% during the third quarter. Hantz Financial Services Inc. now owns 1,036 shares of the semiconductor company's stock worth $29,000 after buying an additional 895 shares during the last quarter. Northwestern Mutual Wealth Management Co. bought a new position in Alpha and Omega Semiconductor in the third quarter valued at approximately $62,000. CWM LLC grew its holdings in Alpha and Omega Semiconductor by 20.0% during the 3rd quarter. CWM LLC now owns 2,314 shares of the semiconductor company's stock worth $65,000 after acquiring an additional 386 shares during the period. Strs Ohio bought a new stake in shares of Alpha and Omega Semiconductor during the 1st quarter valued at $70,000. Finally, iSAM Funds UK Ltd bought a new stake in shares of Alpha and Omega Semiconductor during the 3rd quarter valued at $91,000. Institutional investors and hedge funds own 78.97% of the company's stock.

Alpha and Omega Semiconductor Company Profile

Alpha and Omega Semiconductor Limited NASDAQ: AOSL is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets.

Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production.

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