Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down After Earnings Miss

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s stock price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $25.19, but opened at $24.00. Applied Optoelectronics shares last traded at $23.04, with a volume of 1,989,716 shares traded.

The semiconductor company reported ($0.09) earnings per share for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.07). The company had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million. Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%.

Wall Street Analyst Weigh In

AAOI has been the topic of a number of recent analyst reports. Northland Securities restated an "outperform" rating and set a $40.00 price target (up previously from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Raymond James lifted their price target on shares of Applied Optoelectronics to $31.00 and gave the company a "buy" rating in a research report on Friday. StockNews.com upgraded shares of Applied Optoelectronics to a "sell" rating in a report on Wednesday, February 26th. B. Riley lowered shares of Applied Optoelectronics from a "neutral" rating to a "sell" rating and set a $14.00 target price on the stock. in a research report on Tuesday, December 10th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $44.00 target price on shares of Applied Optoelectronics in a research report on Monday, February 24th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $27.60.

Remove Ads

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, Director William H. Yeh sold 10,000 shares of the company's stock in a transaction on Tuesday, December 3rd. The shares were sold at an average price of $43.08, for a total transaction of $430,800.00. Following the sale, the director now owns 223,538 shares of the company's stock, valued at approximately $9,630,017.04. This represents a 4.28 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Stefan J. Murry sold 2,298 shares of the firm's stock in a transaction on Tuesday, January 21st. The stock was sold at an average price of $35.17, for a total transaction of $80,820.66. Following the completion of the sale, the chief financial officer now owns 209,831 shares of the company's stock, valued at $7,379,756.27. The trade was a 1.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 36,298 shares of company stock valued at $1,281,201. 5.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Several large investors have recently added to or reduced their stakes in AAOI. Allspring Global Investments Holdings LLC purchased a new position in Applied Optoelectronics during the third quarter worth about $303,000. Emerald Mutual Fund Advisers Trust grew its holdings in shares of Applied Optoelectronics by 2.8% in the third quarter. Emerald Mutual Fund Advisers Trust now owns 410,154 shares of the semiconductor company's stock worth $5,869,000 after purchasing an additional 11,037 shares during the last quarter. Harbor Capital Advisors Inc. purchased a new position in shares of Applied Optoelectronics in the third quarter valued at about $1,319,000. Emerald Advisers LLC lifted its holdings in Applied Optoelectronics by 2.7% in the 3rd quarter. Emerald Advisers LLC now owns 526,458 shares of the semiconductor company's stock worth $7,534,000 after buying an additional 13,737 shares during the period. Finally, Oppenheimer & Co. Inc. purchased a new stake in Applied Optoelectronics in the third quarter worth $186,000. Hedge funds and other institutional investors own 61.72% of the company's stock.

Applied Optoelectronics Price Performance

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 stock has a market cap of $830.50 million, a P/E ratio of -8.60 and a beta of 2.36. The business's 50 day moving average price is $30.33 and its two-hundred day moving average price is $24.24.

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.