Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up - Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s stock price gapped up before the market opened on Monday . The stock had previously closed at $11.28, but opened at $12.02. Applied Optoelectronics shares last traded at $11.38, with a volume of 900,447 shares.

Analysts Set New Price Targets

Several equities research analysts recently commented on AAOI shares. StockNews.com upgraded shares of Applied Optoelectronics to a "sell" rating in a research note on Wednesday, February 26th. Raymond James decreased their target price on shares of Applied Optoelectronics from $31.00 to $20.00 and set an "outperform" rating for the company in a research note on Monday, April 14th. B. Riley upgraded Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 price target on the stock in a research report on Friday, March 7th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $36.00 target price on shares of Applied Optoelectronics in a research note on Friday, March 14th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $23.60.

Applied Optoelectronics Price Performance

The company has a market cap of $531.41 million, a PE ratio of -5.17 and a beta of 2.57. The stock has a fifty day simple moving average of $18.26 and a two-hundred day simple moving average of $24.91. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its earnings results on Wednesday, February 26th. The semiconductor company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.07). Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%. The company had revenue of $100.27 million for the quarter, compared to analysts' expectations of $99.92 million. On average, equities analysts predict that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 2,000 shares of the business's stock in a transaction dated Monday, March 17th. The shares were sold at an average price of $23.06, for a total value of $46,120.00. Following the sale, the chief financial officer now directly owns 196,581 shares in the company, valued at $4,533,157.86. The trade was a 1.01 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last 90 days, insiders have sold 6,298 shares of company stock valued at $148,841. Insiders own 4.96% of the company's stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Meeder Asset Management Inc. purchased a new position in Applied Optoelectronics during the fourth quarter worth $38,000. Sterling Capital Management LLC raised its stake in Applied Optoelectronics by 858.2% in the 4th quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in Applied Optoelectronics in the 4th quarter valued at about $63,000. Summit Investment Advisors Inc. grew its holdings in shares of Applied Optoelectronics by 17.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company's stock worth $157,000 after buying an additional 637 shares in the last quarter. Finally, FMR LLC grew its holdings in shares of Applied Optoelectronics by 3,290.6% during the third quarter. FMR LLC now owns 6,137 shares of the semiconductor company's stock worth $88,000 after buying an additional 5,956 shares in the last quarter. Institutional investors and hedge funds own 61.72% of the company's stock.

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.