Applied Optoelectronics (NASDAQ:AAOI) Stock Jumps 3.9% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price rose 3.9% on Monday. The company traded as high as $54.04 and last traded at $52.10. Approximately 15,277,094 shares changed hands during mid-day trading, an increase of 43% from the average daily volume of 10,652,387 shares. The stock had previously closed at $50.13.

Analyst Ratings Changes

A number of analysts recently issued reports on AAOI shares. Raymond James Financial restated an “outperform” rating and set a $178.00 price objective on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Rosenblatt Securities lowered their price objective on shares of Applied Optoelectronics from $220.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday, November 6th. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Needham & Company LLC reduced their target price on shares of Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, November 6th. Finally, Weiss Ratings raised shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $111.60.

Applied Optoelectronics Trading Up 15.6%

The firm’s 50-day moving average price is $90.69 and its 200-day moving average price is $113.37. The company has a quick ratio of 1.77, a current ratio of 2.34 and a debt-to-equity ratio of 0.10. The company has a market cap of $5.07 billion, a P/E ratio of -129.90 and a beta of 4.04.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.03. Applied Optoelectronics had a negative net margin of 4.39% and a negative return on equity of 0.17%. The company had revenue of $269.88 million for the quarter, compared to analysts’ expectations of $268.11 million. During the same period in the prior year, the company posted ($0.09) EPS. Applied Optoelectronics’s revenue was up 127.5% compared to the same quarter last year. As a group, equities research analysts expect that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity at Applied Optoelectronics

In related news, insider Shu-Hua Yeh sold 6,000 shares of the stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the sale, the insider owned 371,498 shares of the company’s stock, valued at approximately $44,590,904.94. This represents a 1.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the transaction, the chief financial officer directly owned 363,168 shares of the company’s stock, valued at $37,359,092.16. The trade was a 1.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 52,172 shares of company stock worth $5,985,036. 3.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Several hedge funds have recently bought and sold shares of AAOI. Knights of Columbus Asset Advisors LLC lifted its stake in Applied Optoelectronics by 1.1% in the 3rd quarter. Knights of Columbus Asset Advisors LLC now owns 20,427 shares of the semiconductor company’s stock worth $2,028,000 after purchasing an additional 221 shares in the last quarter. Geneos Wealth Management Inc. grew its position in shares of Applied Optoelectronics by 1.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock valued at $1,529,000 after purchasing an additional 243 shares in the last quarter. Allworth Financial LP increased its holdings in shares of Applied Optoelectronics by 68.8% in the second quarter. Allworth Financial LP now owns 596 shares of the semiconductor company’s stock worth $88,000 after purchasing an additional 243 shares during the period. Polaris Financial Partners bought a new position in shares of Applied Optoelectronics in the third quarter worth $26,000. Finally, EFG International AG bought a new position in shares of Applied Optoelectronics in the second quarter worth $44,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc. designs and manufactures fiber-optic networking products used to transmit data over cable, telecommunications and data center networks. Its offerings include optical transceivers and other optical components and equipment. The company serves customers in markets including broadband access, telecommunications and data centers. Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics has operations in the United States and Asia and serves customers internationally.