Applied Optoelectronics (NASDAQ:AAOI) Trading Down 15.1% – Time to Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) fell 15.1% during trading on Tuesday . The company traded as low as $22.90 and last traded at $23.19. 3,438,982 shares traded hands during trading, an increase of 7% from the average session volume of 3,213,062 shares. The stock had previously closed at $27.32.

Analysts Set New Price Targets

Several research firms recently weighed in on AAOI. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research report on Friday, January 31st. Rosenblatt Securities restated a “buy” rating and set a $44.00 price target on shares of Applied Optoelectronics in a research note on Monday. Northland Securities reaffirmed an “outperform” rating and issued a $40.00 price target (up previously from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Raymond James increased their price objective on Applied Optoelectronics from $17.00 to $39.00 and gave the company an “outperform” rating in a report on Friday, December 20th. Finally, B. Riley downgraded Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 target price for the company. in a research report on Tuesday, December 10th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $29.20.

Applied Optoelectronics Stock Performance

The company has a market capitalization of $1.10 billion, a P/E ratio of -11.46 and a beta of 2.36. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36. The company’s fifty day moving average is $31.17 and its 200 day moving average is $23.80.

Insider Activity at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 4,000 shares of the company’s stock in a transaction on Thursday, January 16th. The shares were sold at an average price of $31.72, for a total value of $126,880.00. Following the transaction, the chief financial officer now owns 212,129 shares of the company’s stock, valued at approximately $6,728,731.88. This represents a 1.85 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $29.00, for a total value of $290,000.00. Following the sale, the director now directly owns 157,813 shares of the company’s stock, valued at $4,576,577. This represents a 5.96 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 46,088 shares of company stock valued at $1,672,801. Corporate insiders own 5.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of AAOI. Corebridge Financial Inc. grew its stake in Applied Optoelectronics by 2.4% in the 4th quarter. Corebridge Financial Inc. now owns 20,253 shares of the semiconductor company’s stock worth $747,000 after buying an additional 471 shares in the last quarter. The Manufacturers Life Insurance Company lifted its holdings in shares of Applied Optoelectronics by 3.4% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 14,667 shares of the semiconductor company’s stock worth $210,000 after acquiring an additional 483 shares during the last quarter. Arizona State Retirement System grew its position in Applied Optoelectronics by 5.7% in the fourth quarter. Arizona State Retirement System now owns 11,246 shares of the semiconductor company’s stock worth $415,000 after acquiring an additional 603 shares in the last quarter. Summit Investment Advisors Inc. increased its stake in Applied Optoelectronics by 17.6% in the fourth quarter. Summit Investment Advisors Inc. now owns 4,262 shares of the semiconductor company’s stock valued at $157,000 after acquiring an additional 637 shares during the last quarter. Finally, Virtu Financial LLC raised its position in Applied Optoelectronics by 3.6% during the fourth quarter. Virtu Financial LLC now owns 25,529 shares of the semiconductor company’s stock valued at $941,000 after purchasing an additional 895 shares in the last quarter. 61.72% of the stock is currently owned by institutional investors.

Applied Optoelectronics Company Profile

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.