Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down After Earnings Miss

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $25.19, but opened at $24.00. Applied Optoelectronics shares last traded at $23.04, with a volume of 1,989,716 shares changing hands.

The semiconductor company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.07). The firm 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%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on AAOI shares. StockNews.com raised Applied Optoelectronics to a “sell” rating in a research note on Wednesday. Northland Securities reissued an “outperform” rating and set a $40.00 price objective (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. B. Riley cut shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 target price for the company. in a report on Tuesday, December 10th. Rosenblatt Securities reiterated a “buy” rating and set a $44.00 price target on shares of Applied Optoelectronics in a report on Monday. Finally, Raymond James upped their price objective on Applied Optoelectronics from $17.00 to $39.00 and gave the company an “outperform” rating in a research report on Friday, December 20th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $29.20.

Insider Buying and Selling

In other news, Director William H. Yeh sold 10,000 shares of the firm’s stock in a transaction on Tuesday, December 3rd. The stock was sold at an average price of $43.08, for a total value of $430,800.00. Following the transaction, the director now directly owns 223,538 shares in the company, valued at $9,630,017.04. This trade represents a 4.28 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Stefan J. Murry sold 4,000 shares of the company’s stock in a transaction 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 sale, the chief financial officer now owns 212,129 shares of the company’s stock, valued at approximately $6,728,731.88. This trade represents a 1.85 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 36,298 shares of company stock worth $1,281,201. 5.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Meeder Asset Management Inc. bought a new position in Applied Optoelectronics in the fourth quarter worth approximately $38,000. Sterling Capital Management LLC lifted its position in Applied Optoelectronics by 858.2% during the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock valued at $47,000 after purchasing an additional 1,150 shares in the last quarter. Canada Pension Plan Investment Board bought a new stake in Applied Optoelectronics during the fourth quarter valued at about $63,000. Summit Investment Advisors Inc. grew its holdings in Applied Optoelectronics by 17.6% during the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company’s stock valued at $157,000 after purchasing an additional 637 shares during the period. Finally, Pingora Partners LLC purchased a new stake in Applied Optoelectronics in the third quarter worth about $82,000. Hedge funds and other institutional investors own 61.72% of the company’s stock.

Applied Optoelectronics Price Performance

The company has a quick ratio of 1.06, a current ratio of 1.61 and a debt-to-equity ratio of 0.36. The stock has a market cap of $1.13 billion, a P/E ratio of -11.67 and a beta of 2.36. The firm has a 50 day moving average price of $30.65 and a 200 day moving average price of $23.92.

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.