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

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price 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 trading hands.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Raymond James lifted their price target on shares of Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a research report on Friday, February 28th. Northland Securities reissued an “outperform” rating and issued a $40.00 price target (up previously from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. B. Riley raised shares of 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. Rosenblatt Securities restated a “buy” rating and issued a $44.00 price objective on shares of Applied Optoelectronics in a research note on Monday, February 24th. Finally, StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research note on Wednesday, February 26th. One investment 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. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $27.40.

Applied Optoelectronics Price Performance

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 stock’s 50 day simple moving average is $28.13 and its two-hundred day simple moving average is $24.43. The stock has a market cap of $785.48 million, a price-to-earnings ratio of -7.68 and a beta of 2.36.

Applied Optoelectronics (NASDAQ:AAOI) 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 net margin of 38.61% and a negative return on equity of 22.36%. The firm had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million. On average, analysts forecast 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 4,000 shares of the stock in a transaction that occurred on Thursday, January 16th. The stock was sold at an average price of $31.72, for a total transaction of $126,880.00. Following the completion of the sale, the chief financial officer now directly owns 212,129 shares of the company’s stock, valued at approximately $6,728,731.88. This represents a 1.85 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard B. Black sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $35.27, for a total transaction of $352,700.00. Following the transaction, the director now directly owns 167,813 shares of the company’s stock, valued at $5,918,764.51. This represents a 5.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 26,298 shares of company stock worth $850,401. Corporate insiders own 5.40% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several hedge funds have recently added to or reduced their stakes in AAOI. Corebridge Financial Inc. raised its stake in Applied Optoelectronics by 2.4% in the fourth quarter. Corebridge Financial Inc. now owns 20,253 shares of the semiconductor company’s stock valued at $747,000 after purchasing an additional 471 shares in the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of Applied Optoelectronics by 3.4% in the third quarter. The Manufacturers Life Insurance Company now owns 14,667 shares of the semiconductor company’s stock worth $210,000 after acquiring an additional 483 shares during the period. Arizona State Retirement System lifted its stake in Applied Optoelectronics by 5.7% in the fourth quarter. Arizona State Retirement System now owns 11,246 shares of the semiconductor company’s stock valued at $415,000 after buying an additional 603 shares during the period. Summit Investment Advisors Inc. lifted its stake in Applied Optoelectronics by 17.6% in the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company’s stock valued at $157,000 after buying an additional 637 shares during the period. Finally, Virtu Financial LLC lifted its stake in Applied Optoelectronics by 3.6% in the fourth quarter. Virtu Financial LLC now owns 25,529 shares of the semiconductor company’s stock valued at $941,000 after buying an additional 895 shares during the period. 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.