Applied Optoelectronics (NASDAQ:AAOI) Trading Down 6.4% – Should You Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares dropped 6.4% during mid-day trading on Wednesday . The company traded as low as $34.52 and last traded at $34.64. Approximately 1,058,320 shares traded hands during trading, a decline of 60% from the average daily volume of 2,637,886 shares. The stock had previously closed at $37.02.

Wall Street Analysts Forecast Growth

AAOI has been the topic of several analyst reports. Raymond James upped their target price on Applied Optoelectronics from $17.00 to $23.00 and gave the company an “outperform” rating in a report on Friday, November 8th. B. Riley Financial reiterated a “neutral” rating and set a $9.00 price objective on shares of Applied Optoelectronics in a research report on Thursday, August 8th. Northland Securities boosted their target price on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the company an “outperform” rating in a report on Friday, November 8th. B. Riley decreased their price target on Applied Optoelectronics from $12.00 to $9.00 and set a “neutral” rating for the company in a report on Wednesday, August 7th. Finally, StockNews.com raised Applied Optoelectronics to a “sell” rating in a research note on Friday, October 25th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating and three have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $18.70.

Applied Optoelectronics Price Performance

The business’s fifty day simple moving average is $20.51 and its 200 day simple moving average is $13.71. The firm has a market capitalization of $1.64 billion, a price-to-earnings ratio of -17.68 and a beta of 1.96. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.61 and a quick ratio of 1.06.

Insider Activity

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 5,000 shares of the company’s stock in a transaction on Wednesday, November 20th. The shares were sold at an average price of $31.56, for a total transaction of $157,800.00. Following the transaction, the chief financial officer now owns 216,129 shares in the company, valued at approximately $6,821,031.24. This represents a 2.26 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider David C. Kuo sold 10,000 shares of Applied Optoelectronics stock in a transaction dated Tuesday, September 24th. The shares were sold at an average price of $15.02, for a total transaction of $150,200.00. Following the transaction, the insider now owns 132,921 shares of the company’s stock, valued at $1,996,473.42. This represents a 7.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 58,817 shares of company stock worth $1,687,174 in the last three months. Company insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently added to or reduced their stakes in the business. Westfield Capital Management Co. LP bought a new stake in Applied Optoelectronics during the 3rd quarter worth approximately $19,019,000. Whale Rock Capital Management LLC bought a new stake in Applied Optoelectronics during the third quarter worth $16,145,000. Shellback Capital LP purchased a new stake in Applied Optoelectronics in the 2nd quarter valued at $8,617,000. Royce & Associates LP lifted its stake in Applied Optoelectronics by 47.7% during the 3rd quarter. Royce & Associates LP now owns 1,596,545 shares of the semiconductor company’s stock valued at $22,847,000 after acquiring an additional 515,489 shares in the last quarter. Finally, JAT Capital Mgmt LP purchased a new position in Applied Optoelectronics during the 3rd quarter worth $6,470,000. 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.