Applied Optoelectronics (NASDAQ:AAOI) Trading Down 5% – Time to Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares dropped 5% on Wednesday . The stock traded as low as $26.45 and last traded at $26.46. Approximately 534,126 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 2,855,604 shares. The stock had previously closed at $27.85.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. B. Riley cut Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price objective on the stock. in a research note on Tuesday, December 10th. StockNews.com raised shares of Applied Optoelectronics to a “sell” rating in a research report on Friday, January 31st. Northland Securities reaffirmed an “outperform” rating and issued a $40.00 price objective (up from $25.00) on shares of Applied Optoelectronics in a report on Wednesday, December 18th. Rosenblatt Securities boosted their target price on shares of Applied Optoelectronics from $27.50 to $44.00 and gave the company a “buy” rating in a report on Friday, December 13th. Finally, Raymond James raised their price target on Applied Optoelectronics from $17.00 to $39.00 and gave the stock an “outperform” rating in a report on Friday, December 20th. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $29.20.

Applied Optoelectronics Trading Up 8.0 %

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 stock has a market cap of $1.27 billion, a P/E ratio of -13.13 and a beta of 2.36. The firm’s fifty day moving average price is $32.34 and its two-hundred day moving average price is $22.67.

Insiders Place Their Bets

In related news, insider Hung-Lun (Fred) Chang sold 20,323 shares of the firm’s stock in a transaction dated Wednesday, November 20th. The stock was sold at an average price of $30.35, for a total transaction of $616,803.05. Following the transaction, the insider now directly owns 195,572 shares of the company’s stock, valued at approximately $5,935,610.20. This trade represents a 9.41 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Richard B. Black sold 10,000 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, January 15th. The stock was 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 $4,576,577. This trade represents a 5.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 93,067 shares of company stock worth $3,243,938 in the last ninety days. 5.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Institutional investors have recently bought and sold shares of the stock. XTX Topco Ltd purchased a new position in Applied Optoelectronics in the 3rd quarter worth approximately $1,109,000. Harbor Capital Advisors Inc. purchased a new position in shares of Applied Optoelectronics in the third quarter worth $1,319,000. Westfield Capital Management Co. LP purchased a new position in shares of Applied Optoelectronics in the third quarter worth $19,019,000. Virtu Financial LLC bought a new stake in Applied Optoelectronics during the 3rd quarter valued at $353,000. Finally, Affinity Wealth Management LLC purchased a new stake in Applied Optoelectronics during the 4th quarter valued at $7,965,000. 61.72% of the stock is currently owned by hedge funds and other institutional investors.

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.