Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down - Should You Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $16.38, but opened at $15.49. Applied Optoelectronics shares last traded at $15.82, with a volume of 370,966 shares.

Analysts Set New Price Targets

AAOI has been the topic of several research reports. StockNews.com upgraded shares of Applied Optoelectronics to a "sell" rating in a research report on Wednesday, February 26th. B. Riley upgraded shares of Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 target price on the stock in a report on Friday, March 7th. Raymond James lifted their price target on shares of Applied Optoelectronics to $31.00 and gave the stock a "buy" rating in a report on Friday, February 28th. Rosenblatt Securities restated a "buy" rating and set a $36.00 target price on shares of Applied Optoelectronics in a research report on Friday, March 14th. Finally, Northland Securities reiterated an "outperform" rating and issued a $40.00 price target (up from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company's stock. Based on data from MarketBeat.com, Applied Optoelectronics has an average rating of "Hold" and an average target price of $25.80.

Applied Optoelectronics Stock Down 15.8 %

The stock has a market cap of $538.39 million, a price-to-earnings ratio of -5.24 and a beta of 2.36. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.61 and a quick ratio of 1.06. The firm's 50-day moving average is $22.57 and its 200 day moving average is $25.23.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its quarterly earnings results on Wednesday, February 26th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.02) by ($0.07). Applied Optoelectronics had a negative net margin of 38.61% and a negative return on equity of 22.36%. The company had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million. Sell-side analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Stefan J. Murry sold 2,000 shares of the business's stock in a transaction dated Monday, March 17th. The stock was sold at an average price of $23.06, for a total value of $46,120.00. Following the transaction, the chief financial officer now owns 196,581 shares in the company, valued at approximately $4,533,157.86. The trade was a 1.01 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $29.00, for a total value of $290,000.00. Following the sale, the director now owns 157,813 shares in the company, valued at $4,576,577. This represents a 5.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 18,298 shares of company stock worth $543,821. 4.96% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. XTX Topco Ltd acquired a new stake in Applied Optoelectronics during the third quarter valued at approximately $1,109,000. Virtu Financial LLC bought a new stake in Applied Optoelectronics during the third quarter valued at $353,000. Emerald Advisers LLC raised its holdings in shares of Applied Optoelectronics by 15.3% during the fourth quarter. Emerald Advisers LLC now owns 606,997 shares of the semiconductor company's stock worth $22,374,000 after purchasing an additional 80,539 shares during the period. Affinity Wealth Management LLC bought a new position in shares of Applied Optoelectronics in the 4th quarter worth about $7,965,000. Finally, State Street Corp grew its position in shares of Applied Optoelectronics by 27.7% during the 3rd quarter. State Street Corp now owns 887,259 shares of the semiconductor company's stock valued at $12,697,000 after buying an additional 192,308 shares during the last quarter. 61.72% of the stock is owned by institutional investors and hedge funds.

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.