Applied Optoelectronics (NASDAQ:AAOI) Shares Down 19.1% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price traded down 19.1% during mid-day trading on Thursday . The stock traded as low as $13.30 and last traded at $12.91. 4,089,600 shares traded hands during mid-day trading, an increase of 37% from the average session volume of 2,986,628 shares. The stock had previously closed at $15.96.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Raymond James lifted their target price on shares of Applied Optoelectronics to $31.00 and gave the stock a “buy” rating in a report on Friday, February 28th. Northland Securities restated an “outperform” rating and set a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research report on Wednesday, February 26th. Rosenblatt Securities restated a “buy” rating and set a $36.00 price objective on shares of Applied Optoelectronics in a report on Friday, March 14th. 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 investment 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.com, the company has a consensus rating of “Hold” and a consensus target price of $25.80.

Applied Optoelectronics Stock Down 19.6 %

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 firm’s fifty day simple moving average is $22.96 and its 200 day simple moving average is $25.32. The stock has a market capitalization of $639.59 million, a price-to-earnings ratio of -6.23 and a beta of 2.36.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings data on Wednesday, February 26th. The semiconductor company reported ($0.09) EPS for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.07). The company had revenue of $100.27 million for the quarter, compared to analyst estimates of $99.92 million. Applied Optoelectronics had a negative return on equity of 22.36% and a negative net margin of 38.61%. On average, sell-side analysts forecast that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

Insider Activity

In related news, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $29.00, for a total value of $290,000.00. Following the sale, the director now owns 157,813 shares of the company’s stock, valued at approximately $4,576,577. This trade represents a 5.96 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Stefan J. Murry sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, March 17th. The stock was sold at an average price of $23.06, for a total value of $46,120.00. Following the transaction, the chief financial officer now directly owns 196,581 shares of the company’s stock, valued at approximately $4,533,157.86. This trade represents a 1.01 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 18,298 shares of company stock worth $543,821 over the last three months. Corporate insiders own 4.96% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of large investors have recently modified their holdings of AAOI. Corebridge Financial Inc. increased its position in shares of Applied Optoelectronics by 2.4% during the 4th quarter. Corebridge Financial Inc. now owns 20,253 shares of the semiconductor company’s stock worth $747,000 after purchasing an additional 471 shares during the last quarter. The Manufacturers Life Insurance Company increased its holdings in Applied Optoelectronics by 3.4% during the third quarter. The Manufacturers Life Insurance Company now owns 14,667 shares of the semiconductor company’s stock worth $210,000 after buying an additional 483 shares during the last quarter. Arizona State Retirement System raised its position in Applied Optoelectronics by 5.7% during the fourth quarter. Arizona State Retirement System now owns 11,246 shares of the semiconductor company’s stock worth $415,000 after acquiring an additional 603 shares in the last quarter. 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 acquiring an additional 637 shares during the last quarter. Finally, Virtu Financial LLC grew its position in shares of Applied Optoelectronics by 3.6% in the 4th quarter. Virtu Financial LLC now owns 25,529 shares of the semiconductor company’s stock valued at $941,000 after acquiring an additional 895 shares during the period. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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.