Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down Following Weak Earnings

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped down before the market opened on Thursday following a weaker than expected earnings announcement. 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 the consensus estimate of ($0.02) by ($0.07). The firm had revenue of $100.27 million during the quarter, compared to analyst estimates of $99.92 million. Applied Optoelectronics had a negative net margin of 38.61% and a negative return on equity of 22.36%.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Northland Securities reaffirmed an “outperform” rating and issued a $40.00 target price (up previously from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Raymond James increased their price target on shares of Applied Optoelectronics to $31.00 and gave the company a “buy” rating in a research note on Friday. B. Riley lowered shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price target on the stock. in a research note on Tuesday, December 10th. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research note on Wednesday. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $44.00 price target on shares of Applied Optoelectronics in a research note on Monday, February 24th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $27.60.

Insider Transactions at Applied Optoelectronics

In other news, Director Richard B. Black sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total transaction of $290,000.00. Following the transaction, the director now directly owns 157,813 shares in the company, valued at approximately $4,576,577. This trade represents a 5.96 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Stefan J. Murry sold 2,298 shares of the firm’s stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $35.17, for a total transaction of $80,820.66. Following the transaction, the chief financial officer now owns 209,831 shares in the company, valued at approximately $7,379,756.27. This trade represents a 1.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 36,298 shares of company stock worth $1,281,201. Insiders own 5.40% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in shares of Applied Optoelectronics by 11.0% during the fourth quarter. Vanguard Group Inc. now owns 2,429,418 shares of the semiconductor company’s stock worth $89,548,000 after purchasing an additional 241,594 shares during the period. Royce & Associates LP lifted its holdings in shares of Applied Optoelectronics by 47.7% during the third quarter. Royce & Associates LP now owns 1,596,545 shares of the semiconductor company’s stock worth $22,847,000 after purchasing an additional 515,489 shares during the period. Westfield Capital Management Co. LP acquired a new stake in shares of Applied Optoelectronics during the third quarter worth $19,019,000. Whale Rock Capital Management LLC acquired a new stake in shares of Applied Optoelectronics during the third quarter worth $16,145,000. Finally, Geode Capital Management LLC lifted its holdings in shares of Applied Optoelectronics by 7.7% during the fourth quarter. Geode Capital Management LLC now owns 979,769 shares of the semiconductor company’s stock worth $36,123,000 after purchasing an additional 70,210 shares during the period. 61.72% of the stock is currently owned by hedge funds and other institutional investors.

Applied Optoelectronics Trading Down 9.1 %

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 company has a fifty day moving average of $30.33 and a two-hundred day moving average of $24.02. The stock has a market capitalization of $1.02 billion, a price-to-earnings ratio of -10.61 and a beta of 2.36.

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.