Applied Optoelectronics (NASDAQ:AAOI) Trading Down 4.4% – Time to Sell?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) fell 4.4% on Monday . The stock traded as low as $35.91 and last traded at $36.15. Approximately 1,270,735 shares were traded during trading, a decline of 54% from the average session volume of 2,755,815 shares. The stock had previously closed at $37.82.

Analyst Ratings Changes

Several research firms recently issued reports on AAOI. Raymond James raised their price objective on shares of Applied Optoelectronics from $17.00 to $39.00 and gave the stock an “outperform” rating in a research report on Friday, December 20th. Northland Securities restated an “outperform” rating and set a $40.00 price target (up previously from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Rosenblatt Securities upped their price objective on Applied Optoelectronics from $27.50 to $44.00 and gave the company a “buy” rating in a report on Friday, December 13th. StockNews.com raised Applied Optoelectronics to a “sell” rating in a research note on Friday, October 25th. Finally, B. Riley downgraded Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 target price on the stock. in a research report on Tuesday, December 10th. Two analysts have rated the stock with a sell rating, one has issued a hold rating and three have issued a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $29.20.

Applied Optoelectronics Price Performance

The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of -19.33 and a beta of 2.36. The stock’s fifty day moving average price is $28.65 and its two-hundred day moving average price is $17.12. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36.

Insider Buying and Selling at Applied Optoelectronics

In other news, insider Hung-Lun (Fred) Chang sold 20,323 shares of the company’s stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $30.35, for a total value of $616,803.05. Following the completion of the sale, the insider now directly owns 195,572 shares of the company’s stock, valued at approximately $5,935,610.20. This represents a 9.41 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider David C. Kuo sold 10,000 shares of the stock in a transaction that occurred on Friday, November 8th. The stock was sold at an average price of $26.93, for a total value of $269,300.00. Following the sale, the insider now directly owns 118,122 shares of the company’s stock, valued at $3,181,025.46. The trade was a 7.81 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 86,769 shares of company stock worth $3,015,537 over the last three months. Insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Institutional investors have recently bought and sold shares of the company. AQR Capital Management LLC increased its stake in shares of Applied Optoelectronics by 90.7% during the second quarter. AQR Capital Management LLC now owns 75,981 shares of the semiconductor company’s stock worth $630,000 after acquiring an additional 36,138 shares during the period. XTX Topco Ltd acquired a new stake in shares of Applied Optoelectronics in the 3rd quarter valued at approximately $1,109,000. Harbor Capital Advisors Inc. purchased a new stake in shares of Applied Optoelectronics in the third quarter valued at approximately $1,319,000. Westfield Capital Management Co. LP acquired a new position in Applied Optoelectronics during the third quarter worth $19,019,000. Finally, Virtu Financial LLC purchased a new position in Applied Optoelectronics in the third quarter worth $353,000. 61.72% of the stock is owned by institutional investors and hedge funds.

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.