Applied Optoelectronics (NASDAQ:AAOI) Shares Down 3.5% - Should You Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s share price dropped 3.5% during trading on Monday . The stock traded as low as $16.81 and last traded at $16.83. Approximately 1,668,785 shares changed hands during mid-day trading, a decline of 32% from the average daily volume of 2,442,659 shares. The stock had previously closed at $17.44.

Analysts Set New Price Targets

A number of brokerages have issued reports on AAOI. Raymond James raised Applied Optoelectronics from a "market perform" rating to an "outperform" rating and set a $17.00 price target on the stock in a research note on Tuesday, September 3rd. Rosenblatt Securities reaffirmed a "buy" rating and set a $20.00 price target on shares of Applied Optoelectronics in a research report on Wednesday, October 9th. B. Riley decreased their price target on shares of Applied Optoelectronics from $12.00 to $9.00 and set a "neutral" rating on the stock in a report on Wednesday, August 7th. B. Riley Financial reissued a "neutral" rating and set a $9.00 price objective on shares of Applied Optoelectronics in a research note on Thursday, August 8th. Finally, StockNews.com upgraded Applied Optoelectronics to a "sell" rating in a report on Friday. One analyst has rated the stock with a sell rating, two have given a hold rating and two have issued a buy rating to the stock. Based on data from MarketBeat, Applied Optoelectronics currently has a consensus rating of "Hold" and a consensus target price of $13.75.

Applied Optoelectronics Stock Down 4.8 %

The firm has a 50-day simple moving average of $13.97 and a 200 day simple moving average of $11.37. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.64 and a quick ratio of 0.97. The company has a market capitalization of $645.87 million, a PE ratio of -9.18 and a beta of 1.96.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last released its quarterly earnings results on Tuesday, August 6th. The semiconductor company reported ($0.28) earnings per share for the quarter, topping analysts' consensus estimates of ($0.29) by $0.01. Applied Optoelectronics had a negative return on equity of 19.82% and a negative net margin of 34.84%. The firm had revenue of $43.27 million during the quarter, compared to analysts' expectations of $44.14 million. During the same quarter in the prior year, the business earned ($0.31) EPS. Applied Optoelectronics's quarterly revenue was up 4.0% compared to the same quarter last year. On average, research analysts predict that Applied Optoelectronics, Inc. will post -1.08 EPS for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In related news, insider David C. Kuo sold 10,000 shares of Applied Optoelectronics stock in a transaction on Tuesday, September 24th. The shares were sold at an average price of $15.02, for a total value of $150,200.00. Following the completion of the sale, the insider now owns 132,921 shares in the company, valued at approximately $1,996,473.42. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 5.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Applied Optoelectronics

Several institutional investors and hedge funds have recently bought and sold shares of AAOI. CANADA LIFE ASSURANCE Co bought a new stake in shares of Applied Optoelectronics in the 1st quarter valued at approximately $46,000. Zurcher Kantonalbank Zurich Cantonalbank raised its position in shares of Applied Optoelectronics by 272.1% during the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,281 shares of the semiconductor company's stock worth $77,000 after purchasing an additional 6,787 shares during the period. Point72 Hong Kong Ltd bought a new stake in Applied Optoelectronics in the second quarter valued at $89,000. Truvestments Capital LLC bought a new stake in Applied Optoelectronics in the 1st quarter valued at about $161,000. Finally, Summit Securities Group LLC acquired a new position in shares of Applied Optoelectronics during the second quarter worth approximately $109,000. Institutional investors and hedge funds 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.

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