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

Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped up prior to trading on Friday . The stock had previously closed at $15.87, but opened at $23.65. Applied Optoelectronics shares last traded at $21.59, with a volume of 7,994,827 shares trading hands.

Analysts Set New Price Targets

A number of equities research analysts recently commented on AAOI shares. Rosenblatt Securities reissued a “buy” rating and issued a $36.00 price objective on shares of Applied Optoelectronics in a research note on Friday. StockNews.com raised shares of Applied Optoelectronics to a “sell” rating in a research note on Wednesday, February 26th. Raymond James upped their target price on shares of Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a report on Friday, February 28th. Northland Securities restated an “outperform” rating and issued a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Finally, B. Riley upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $13.00 target price on the stock in a report on Friday, March 7th. One analyst has rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $25.80.

Applied Optoelectronics Stock Performance

The company has a market capitalization of $1.10 billion, a PE ratio of -10.73 and a beta of 2.36. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.06 and a current ratio of 1.61. The stock’s fifty day simple moving average is $26.15 and its 200-day simple moving average is $24.70.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data 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 company had revenue of $100.27 million for the quarter, compared to analysts’ expectations 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, equities analysts predict that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

Insider Transactions at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 16th. The shares were sold at an average price of $31.72, for a total value of $126,880.00. Following the transaction, the chief financial officer now owns 212,129 shares in the company, valued at approximately $6,728,731.88. This trade represents a 1.85 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Richard B. Black sold 10,000 shares of the firm’s stock in a transaction that occurred 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 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 position. The disclosure for this sale can be found here. Insiders have sold a total of 26,298 shares of company stock worth $850,401 in the last three months. Company insiders own 5.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. GF Fund Management CO. LTD. acquired a new stake in Applied Optoelectronics in the fourth quarter valued at approximately $5,068,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in Applied Optoelectronics by 17.4% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 78,959 shares of the semiconductor company’s stock valued at $2,910,000 after acquiring an additional 11,684 shares in the last quarter. Voloridge Investment Management LLC acquired a new stake in Applied Optoelectronics in the fourth quarter valued at approximately $13,035,000. Two Sigma Advisers LP grew its position in Applied Optoelectronics by 265.8% in the fourth quarter. Two Sigma Advisers LP now owns 57,800 shares of the semiconductor company’s stock valued at $2,131,000 after acquiring an additional 42,000 shares in the last quarter. Finally, Two Sigma Investments LP grew its position in Applied Optoelectronics by 10.5% in the fourth quarter. Two Sigma Investments LP now owns 588,469 shares of the semiconductor company’s stock valued at $21,691,000 after acquiring an additional 55,863 shares in the last quarter. 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.