Applied Optoelectronics (NASDAQ:AAOI) Trading 12% Higher – Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price shot up 12% during mid-day trading on Wednesday . The stock traded as high as $26.68 and last traded at $26.13. 1,591,988 shares traded hands during trading, a decline of 52% from the average session volume of 3,316,894 shares. The stock had previously closed at $23.34.

Analysts Set New Price Targets

AAOI has been the topic of several recent analyst reports. Rosenblatt Securities reiterated a “buy” rating and issued a $44.00 price target on shares of Applied Optoelectronics in a report on Monday. Northland Securities reiterated an “outperform” rating and set a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. StockNews.com raised shares of Applied Optoelectronics to a “sell” rating in a research note on Friday, January 31st. B. Riley lowered shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 target price on the stock. in a research report on Tuesday, December 10th. Finally, Raymond James lifted their target price on Applied Optoelectronics from $17.00 to $39.00 and gave the company an “outperform” rating in a research report on Friday, December 20th. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $29.20.

Applied Optoelectronics Price Performance

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 market cap of $1.21 billion, a PE ratio of -12.54 and a beta of 2.36. The firm has a 50 day simple moving average of $30.99 and a 200-day simple moving average of $23.91.

Insider Buying and Selling

In related news, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction that occurred 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 completion of the sale, the director now directly owns 157,813 shares in the company, valued at $4,576,577. This trade represents a 5.96 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 completion of the transaction, the chief financial officer now directly owns 212,129 shares in the company, valued at approximately $6,728,731.88. The trade was a 1.85 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 46,088 shares of company stock worth $1,672,801 in the last ninety days. 5.40% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of institutional investors and hedge funds have recently modified their holdings of AAOI. Meeder Asset Management Inc. purchased a new position in Applied Optoelectronics during the 4th quarter worth approximately $38,000. Sterling Capital Management LLC raised its holdings in shares of Applied Optoelectronics by 858.2% during the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company’s stock worth $47,000 after purchasing an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board acquired a new position in Applied Optoelectronics during the fourth quarter valued at $63,000. Pingora Partners LLC acquired a new stake in Applied Optoelectronics during the 3rd quarter worth about $82,000. Finally, FMR LLC grew its position in Applied Optoelectronics by 3,290.6% during the 3rd quarter. FMR LLC now owns 6,137 shares of the semiconductor company’s stock worth $88,000 after purchasing an additional 5,956 shares during the period. 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.