Applied Optoelectronics (NASDAQ:AAOI) Shares Up 8.6% - Time to Buy?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shot up 8.6% during mid-day trading on Wednesday . The company traded as high as $16.89 and last traded at $16.36. 882,117 shares traded hands during trading, a decline of 76% from the average session volume of 3,711,587 shares. The stock had previously closed at $15.07.

Analyst Ratings Changes

A number of research firms have recently issued reports on AAOI. Raymond James boosted their price target on shares of Applied Optoelectronics to $31.00 and gave the company a "buy" rating in a report on Friday, February 28th. B. Riley upgraded shares of Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $13.00 price objective on the stock in a research note on Friday, March 7th. Rosenblatt Securities reiterated a "buy" rating and issued a $36.00 price objective on shares of Applied Optoelectronics in a research note on Friday. Northland Securities reiterated 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. Finally, StockNews.com upgraded shares of Applied Optoelectronics to a "sell" rating in a research note on Wednesday, February 26th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have issued a buy rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $25.80.

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Applied Optoelectronics Price Performance

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 company has a market capitalization of $1.01 billion, a P/E ratio of -9.81 and a beta of 2.36. The company's 50-day simple moving average is $25.90 and its 200 day simple moving average is $24.88.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted 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). The business had revenue of $100.27 million during the quarter, compared to the consensus estimate of $99.92 million. Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%. As a group, sell-side analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Richard B. Black sold 10,000 shares of the company's stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total transaction of $290,000.00. Following the completion of the sale, the director now directly owns 157,813 shares of the company's stock, valued at approximately $4,576,577. This represents a 5.96 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Stefan J. Murry sold 2,298 shares of the company'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 sale, the chief financial officer now directly owns 209,831 shares of the company's stock, valued at approximately $7,379,756.27. This represents a 1.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 16,298 shares of company stock valued at $497,701 over the last ninety days. Corporate insiders own 5.40% of the company's stock.

Institutional Trading of Applied Optoelectronics

Several large investors have recently modified their holdings of AAOI. Meeder Asset Management Inc. bought a new stake in shares of Applied Optoelectronics during the 4th quarter worth $38,000. Sterling Capital Management LLC boosted its holdings 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 buying an additional 1,150 shares during the period. Canada Pension Plan Investment Board bought a new stake in shares of Applied Optoelectronics during the 4th quarter worth $63,000. Pingora Partners LLC bought a new stake in shares of Applied Optoelectronics during the 3rd quarter worth $82,000. Finally, FMR LLC boosted its holdings in shares of Applied Optoelectronics by 3,290.6% during the 3rd quarter. FMR LLC now owns 6,137 shares of the semiconductor company's stock worth $88,000 after buying an additional 5,956 shares during the period. 61.72% of the stock is owned by 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.