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

Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped up before the market opened on Tuesday . The stock had previously closed at $31.03, but opened at $33.21. Applied Optoelectronics shares last traded at $32.27, with a volume of 1,226,045 shares changing hands.

Analyst Ratings Changes

Several research firms recently weighed in on AAOI. Raymond James boosted their target price on Applied Optoelectronics from $17.00 to $39.00 and gave the stock an “outperform” rating in a report on Friday, December 20th. StockNews.com upgraded Applied Optoelectronics to a “sell” rating in a report on Friday, January 3rd. Northland Securities reaffirmed an “outperform” rating and set a $40.00 price objective (up previously from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. Rosenblatt Securities raised their target price on Applied Optoelectronics from $27.50 to $44.00 and gave the stock a “buy” rating in a research report on Friday, December 13th. Finally, B. Riley cut shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price objective for the company. in a research note on Tuesday, December 10th. Two equities research analysts have rated the stock with a sell rating, one has given a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $29.20.

Applied Optoelectronics Price Performance

The firm has a market capitalization of $1.42 billion, a P/E ratio of -14.71 and a beta of 2.39. The company has a debt-to-equity ratio of 0.36, a current ratio of 1.61 and a quick ratio of 1.06. The company’s 50 day moving average price is $34.59 and its 200 day moving average price is $20.45.

Insider Activity

In other Applied Optoelectronics news, insider David C. Kuo sold 10,000 shares of the company’s stock in a transaction dated Friday, November 8th. The shares were sold at an average price of $26.93, for a total transaction of $269,300.00. Following the transaction, the insider now directly owns 118,122 shares in the company, valued at approximately $3,181,025.46. This represents a 7.81 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Elizabeth G. Loboa sold 13,494 shares of the firm’s stock in a transaction dated Thursday, November 21st. The shares were sold at an average price of $36.54, for a total transaction of $493,070.76. Following the completion of the transaction, the director now directly owns 124,500 shares in the company, valued at $4,549,230. This trade represents a 9.78 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 100,769 shares of company stock valued at $3,432,417 over the last 90 days. 5.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its position in shares of Applied Optoelectronics by 90.7% during the second quarter. AQR Capital Management LLC now owns 75,981 shares of the semiconductor company’s stock worth $630,000 after purchasing an additional 36,138 shares in the last quarter. XTX Topco Ltd bought a new stake in shares of Applied Optoelectronics in the third quarter worth about $1,109,000. Harbor Capital Advisors Inc. bought a new position in shares of Applied Optoelectronics during the 3rd quarter valued at about $1,319,000. Westfield Capital Management Co. LP acquired a new position in shares of Applied Optoelectronics in the 3rd quarter valued at approximately $19,019,000. Finally, Virtu Financial LLC bought a new stake in Applied Optoelectronics during the 3rd quarter worth approximately $353,000. Institutional investors and hedge funds 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.