Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up - Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares gapped up prior to trading on Friday . The stock had previously closed at $15.55, but opened at $15.92. Applied Optoelectronics shares last traded at $15.46, with a volume of 179,052 shares traded.

Analysts Set New Price Targets

A number of research firms have recently commented on AAOI. Northland Securities reissued an "outperform" rating and issued a $40.00 price objective (up previously from $25.00) on shares of Applied Optoelectronics in a research note on Wednesday, December 18th. B. Riley raised Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 target price on the stock in a research report on Friday. Rosenblatt Securities reaffirmed a "buy" rating and set a $44.00 target price on shares of Applied Optoelectronics in a research report on Monday, February 24th. Raymond James boosted their target price on Applied Optoelectronics to $31.00 and gave the stock a "buy" rating in a research report on Friday, February 28th. Finally, StockNews.com raised Applied Optoelectronics to a "sell" rating in a research report on Wednesday, February 26th. 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 company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $27.40.

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Applied Optoelectronics Stock Up 1.7 %

The stock has a market capitalization of $785.48 million, a price-to-earnings ratio of -7.68 and a beta of 2.36. The company has a quick ratio of 1.06, a current ratio of 1.61 and a debt-to-equity ratio of 0.36. The firm has a 50-day moving average of $28.13 and a two-hundred day moving average of $24.43.

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

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, Director Richard B. Black sold 10,000 shares of the business's stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $29.00, for a total value of $290,000.00. Following the transaction, the director now owns 157,813 shares in the company, valued at $4,576,577. The trade was a 5.96 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Stefan J. Murry sold 2,298 shares of the business's stock in a transaction dated Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total value of $80,820.66. Following the completion of the transaction, the chief financial officer now owns 209,831 shares in the company, valued at $7,379,756.27. This trade represents a 1.08 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 26,298 shares of company stock valued at $850,401. Company insiders own 5.40% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Meeder Asset Management Inc. purchased a new position in Applied Optoelectronics in the fourth quarter valued at about $38,000. Sterling Capital Management LLC boosted its stake in shares of Applied Optoelectronics by 858.2% during the 4th 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 in the last quarter. Canada Pension Plan Investment Board bought a new stake in shares of Applied Optoelectronics during the 4th quarter worth about $63,000. Summit Investment Advisors Inc. boosted its stake in shares of Applied Optoelectronics by 17.6% during the 4th quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company's stock worth $157,000 after acquiring an additional 637 shares in the last quarter. Finally, Pingora Partners LLC bought a new stake in shares of Applied Optoelectronics during the 3rd quarter worth about $82,000. Hedge funds and other institutional investors own 61.72% of the company's stock.

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.