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

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped up prior to trading on Friday . The stock had previously closed at $36.42, but opened at $37.64. Applied Optoelectronics shares last traded at $40.12, with a volume of 685,265 shares traded.

Analysts Set New Price Targets

AAOI has been the subject of a number of recent analyst reports. B. Riley Financial restated a “neutral” rating and set a $9.00 target price on shares of Applied Optoelectronics in a report on Thursday, August 8th. Rosenblatt Securities upped their price objective on shares of Applied Optoelectronics from $20.00 to $27.50 and gave the stock a “buy” rating in a report on Friday, November 8th. Raymond James raised their target price on shares of Applied Optoelectronics from $17.00 to $23.00 and gave the stock an “outperform” rating in a research report on Friday, November 8th. B. Riley reduced their price target 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. Finally, Northland Securities raised their price objective on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the stock an “outperform” rating in a report on Friday, November 8th. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $18.70.

Applied Optoelectronics Stock Up 15.5 %

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 50-day moving average price is $20.95 and its two-hundred day moving average price is $13.87. The stock has a market capitalization of $1.90 billion, a PE ratio of -20.60 and a beta of 1.96.

Insiders Place Their Bets

In other news, CFO Stefan J. Murry sold 5,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $31.56, for a total value of $157,800.00. Following the sale, the chief financial officer now directly owns 216,129 shares of the company’s stock, valued at $6,821,031.24. The trade was a 2.26 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider David C. Kuo sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, November 8th. The shares were sold at an average price of $26.93, for a total value of $269,300.00. Following the transaction, the insider now directly owns 118,122 shares of the company’s stock, valued at approximately $3,181,025.46. This trade represents a 7.81 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 58,817 shares of company stock worth $1,687,174. 5.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its stake in Applied Optoelectronics by 29.2% during the 1st 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. CANADA LIFE ASSURANCE Co bought a new stake in shares of Applied Optoelectronics during the first quarter valued at approximately $46,000. Janus Henderson Group PLC purchased a new position in Applied Optoelectronics in the 1st quarter worth approximately $386,000. California State Teachers Retirement System bought a new position in Applied Optoelectronics in the 1st quarter valued at approximately $511,000. Finally, Bank of New York Mellon Corp purchased a new stake in Applied Optoelectronics during the 2nd quarter valued at $956,000. 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.