Applied Optoelectronics (NASDAQ:AAOI) Cut to Hold at Zacks Investment Research

Applied Optoelectronics (NASDAQ:AAOI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday, Zacks.com reports.

According to Zacks, “Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company’s products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure. Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas. “

A number of other equities research analysts have also recently commented on the company. ValuEngine upgraded Applied Optoelectronics from a “buy” rating to a “strong-buy” rating in a report on Wednesday, September 4th. Northland Securities reissued a “sell” rating and issued a $6.50 price objective on shares of Applied Optoelectronics in a research report on Thursday, August 8th. JPMorgan Chase & Co. lowered Applied Optoelectronics from a “neutral” rating to an “underweight” rating and set a $11.00 price objective on the stock. in a research report on Tuesday. They noted that the move was a valuation call. Finally, Rosenblatt Securities reissued a “hold” rating and issued a $10.00 price objective on shares of Applied Optoelectronics in a research report on Thursday, August 8th. Four research analysts have rated the stock with a sell rating, seven have given a hold rating, one has given a buy rating and one has issued a strong buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $13.50.

Shares of AAOI traded down $0.25 during midday trading on Thursday, reaching $9.89. 21,410 shares of the stock were exchanged, compared to its average volume of 427,753. Applied Optoelectronics has a 52 week low of $8.34 and a 52 week high of $23.38. The company has a current ratio of 2.95, a quick ratio of 1.75 and a debt-to-equity ratio of 0.37. The company’s 50 day moving average is $10.67 and its two-hundred day moving average is $10.31. The company has a market capitalization of $206.30 million, a P/E ratio of 18.66 and a beta of 2.08.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings results on Wednesday, August 7th. The semiconductor company reported ($0.41) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.47) by $0.06. Applied Optoelectronics had a negative return on equity of 6.14% and a negative net margin of 16.22%. The business had revenue of $43.40 million for the quarter, compared to the consensus estimate of $42.49 million. During the same quarter in the prior year, the company earned $0.64 EPS. The business’s revenue was down 50.6% compared to the same quarter last year. On average, sell-side analysts expect that Applied Optoelectronics will post -1.46 EPS for the current year.

In other news, CFO Stefan J. Murry sold 6,000 shares of the business’s stock in a transaction that occurred on Friday, October 11th. The stock was sold at an average price of $10.41, for a total transaction of $62,460.00. Following the completion of the transaction, the chief financial officer now directly owns 65,443 shares in the company, valued at $681,261.63. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 6.90% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the company. Meadow Creek Investment Management LLC grew its position in Applied Optoelectronics by 37.1% during the 2nd quarter. Meadow Creek Investment Management LLC now owns 4,848 shares of the semiconductor company’s stock worth $50,000 after purchasing an additional 1,312 shares in the last quarter. Steward Partners Investment Advisory LLC bought a new position in shares of Applied Optoelectronics during the 2nd quarter valued at approximately $51,000. Neuburgh Advisers LLC grew its stake in shares of Applied Optoelectronics by 37.1% during the 2nd quarter. Neuburgh Advisers LLC now owns 6,666 shares of the semiconductor company’s stock valued at $68,000 after acquiring an additional 1,804 shares during the period. Riverhead Capital Management LLC grew its stake in shares of Applied Optoelectronics by 35.2% during the 2nd quarter. Riverhead Capital Management LLC now owns 7,685 shares of the semiconductor company’s stock valued at $79,000 after acquiring an additional 2,000 shares during the period. Finally, Tyers Asset Management LLC grew its stake in shares of Applied Optoelectronics by 37.1% during the 2nd quarter. Tyers Asset Management LLC now owns 8,484 shares of the semiconductor company’s stock valued at $87,000 after acquiring an additional 2,296 shares during the period. Institutional investors and hedge funds own 64.60% of the company’s stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells various fiber-optic networking products worldwide. It offers optical modules, lasers, transmitters and transceivers, and turn-key equipment, as well as headend, node, and distribution equipment. The company sells its products to Internet data center operators, cable television and telecommunications equipment manufacturers, and Internet service providers through its direct and indirect sales channels.

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