Applied Optoelectronics (NASDAQ:AAOI) Trading Down 3.5% – Time to Sell?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) fell 3.5% during trading on Monday . The company traded as low as $16.81 and last traded at $16.83. 1,668,785 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 2,442,659 shares. The stock had previously closed at $17.44.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. B. Riley dropped their target price on shares of Applied Optoelectronics from $12.00 to $9.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 7th. B. Riley Financial reissued a “neutral” rating and set a $9.00 price objective on shares of Applied Optoelectronics in a report on Thursday, August 8th. Rosenblatt Securities restated a “buy” rating and issued a $20.00 target price on shares of Applied Optoelectronics in a research note on Wednesday, October 9th. StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a research note on Friday, October 25th. Finally, Raymond James raised Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $17.00 price objective on the stock in a report on Tuesday, September 3rd. One investment analyst has rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $13.75.

Applied Optoelectronics Stock Performance

The firm’s fifty day simple moving average is $14.27 and its 200 day simple moving average is $11.43. The company has a market capitalization of $636.15 million, a PE ratio of -8.61 and a beta of 1.96. The company has a debt-to-equity ratio of 0.41, a current ratio of 1.64 and a quick ratio of 0.97.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Tuesday, August 6th. The semiconductor company reported ($0.28) EPS for the quarter, topping analysts’ consensus estimates of ($0.29) by $0.01. The firm had revenue of $43.27 million for the quarter, compared to the consensus estimate of $44.14 million. Applied Optoelectronics had a negative return on equity of 19.82% and a negative net margin of 34.84%. The company’s revenue was up 4.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.31) earnings per share. On average, research analysts predict that Applied Optoelectronics, Inc. will post -1.08 EPS for the current year.

Insiders Place Their Bets

In related news, insider David C. Kuo sold 10,000 shares of the business’s stock in a transaction on Tuesday, September 24th. The shares were sold at an average price of $15.02, for a total value of $150,200.00. Following the completion of the transaction, the insider now directly owns 132,921 shares in the company, valued at $1,996,473.42. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Institutional investors and hedge funds have recently modified their holdings of the business. BNP Paribas Financial Markets boosted its position in Applied Optoelectronics by 245.7% during the first quarter. BNP Paribas Financial Markets now owns 49,661 shares of the semiconductor company’s stock worth $688,000 after purchasing an additional 35,295 shares in the last quarter. Hussman Strategic Advisors Inc. acquired a new stake in Applied Optoelectronics in the 1st quarter valued at $2,620,000. GSA Capital Partners LLP increased its holdings in Applied Optoelectronics by 34.6% in the 1st quarter. GSA Capital Partners LLP now owns 87,844 shares of the semiconductor company’s stock worth $1,218,000 after acquiring an additional 22,592 shares in the last quarter. Swiss National Bank acquired a new position in Applied Optoelectronics during the first quarter worth $1,123,000. Finally, Vanguard Group Inc. lifted its holdings in Applied Optoelectronics by 29.2% during the first quarter. Vanguard Group Inc. now owns 1,954,498 shares of the semiconductor company’s stock valued at $27,089,000 after purchasing an additional 442,277 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.