StockNews.com Downgrades Applied Optoelectronics (NASDAQ:AAOI) to Sell

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) was downgraded by StockNews.com from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Thursday.

Other research analysts also recently issued reports about the company. Rosenblatt Securities lifted their price objective on Applied Optoelectronics to $30.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. B. Riley raised Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 price target for the company in a research report on Friday, March 7th. Finally, Raymond James cut their price target on Applied Optoelectronics from $20.00 to $18.00 and set an "outperform" rating for the company in a report on Friday, May 9th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and three have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $22.00.

Applied Optoelectronics Price Performance

Shares of NASDAQ:AAOI traded up $0.28 during midday trading on Thursday, hitting $17.35. 654,423 shares of the stock were exchanged, compared to its average volume of 3,251,804. Applied Optoelectronics has a twelve month low of $6.70 and a twelve month high of $44.50. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36. The company has a 50 day moving average price of $15.16 and a 200-day moving average price of $24.65. The stock has a market cap of $963.22 million, a P/E ratio of -8.42 and a beta of 2.55.

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 for the quarter, beating the consensus estimate of ($0.04) by $0.02. The firm had revenue of $99.86 million during the quarter, compared to the consensus estimate of $99.37 million. Applied Optoelectronics had a negative net margin of 38.61% and a negative return on equity of 22.36%. The firm's revenue for the quarter was up 145.5% on a year-over-year basis. During the same period last year, the firm posted ($0.31) EPS. On average, research analysts forecast that Applied Optoelectronics will post -1.18 earnings per share for the current year.

Insider Buying and Selling at Applied Optoelectronics

In related news, CEO Chih-Hsiang (Thompson) Lin bought 21,200 shares of the stock in a transaction that occurred on Tuesday, May 13th. The stock was purchased at an average cost of $18.22 per share, for a total transaction of $386,264.00. Following the completion of the acquisition, the chief executive officer now owns 1,659,025 shares in the company, valued at $30,227,435.50. This trade represents a 1.29% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Stefan J. Murry sold 2,000 shares of the stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $23.06, for a total transaction of $46,120.00. Following the transaction, the chief financial officer now directly owns 196,581 shares in the company, valued at approximately $4,533,157.86. This represents a 1.01% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 39,263 shares of company stock worth $740,590. Insiders own 4.96% of the company's stock.

Institutional Trading of Applied Optoelectronics

Several institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. purchased a new position in shares of Applied Optoelectronics in the 4th quarter worth $38,000. Sterling Capital Management LLC increased its stake 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 worth $47,000 after acquiring an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in shares of Applied Optoelectronics in the 4th quarter worth about $63,000. AlphaQuest LLC raised its holdings in shares of Applied Optoelectronics by 243.9% in the 1st quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 1,629 shares during the period. Finally, Summit Investment Advisors Inc. lifted its stake in shares of Applied Optoelectronics by 17.6% in the 4th 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. 61.72% of the stock is owned by hedge funds and other institutional investors.

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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