Applied Optoelectronics (AAOI) Upgraded by Zacks Investment Research to Buy

Zacks Investment Research upgraded shares of Applied Optoelectronics (NASDAQ:AAOI) from a hold rating to a buy rating in a report released on Wednesday. The firm currently has $19.00 price objective on the semiconductor company’s stock.

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 research firms also recently issued reports on AAOI. BidaskClub downgraded Applied Optoelectronics from a sell rating to a strong sell rating in a report on Tuesday, October 9th. Cowen decreased their price objective on Applied Optoelectronics from $53.00 to $25.00 and set an outperform rating for the company in a report on Thursday, November 8th. ValuEngine downgraded Applied Optoelectronics from a sell rating to a strong sell rating in a report on Tuesday, October 9th. Piper Jaffray Companies decreased their price objective on Applied Optoelectronics to $20.00 and set a neutral rating for the company in a report on Wednesday, November 7th. Finally, DA Davidson increased their price objective on Applied Optoelectronics to $42.00 and gave the stock a buy rating in a report on Thursday, November 8th. Six equities research analysts have rated the stock with a sell rating, two have assigned a hold rating and five have assigned a buy rating to the company’s stock. Applied Optoelectronics presently has an average rating of Hold and a consensus target price of $24.50.

AAOI traded down $1.25 during trading on Wednesday, reaching $16.14. The stock had a trading volume of 26,828 shares, compared to its average volume of 514,876. The company has a current ratio of 2.60, a quick ratio of 1.30 and a debt-to-equity ratio of 0.19. The company has a market cap of $338.18 million, a price-to-earnings ratio of 3.80, a price-to-earnings-growth ratio of 0.66 and a beta of 2.49. Applied Optoelectronics has a one year low of $13.42 and a one year high of $50.30.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Wednesday, November 7th. The semiconductor company reported $0.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.25. The business had revenue of $56.40 million during the quarter, compared to the consensus estimate of $56.55 million. Applied Optoelectronics had a return on equity of 8.73% and a net margin of 4.20%. The firm’s quarterly revenue was down 36.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.08 earnings per share. On average, analysts predict that Applied Optoelectronics will post 0.53 EPS for the current year.

In other news, CFO Stefan J. Murry sold 2,000 shares of the stock in a transaction on Wednesday, December 19th. The stock was sold at an average price of $15.40, for a total value of $30,800.00. Following the sale, the chief financial officer now directly owns 64,520 shares of the company’s stock, valued at $993,608. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Over the last three months, insiders sold 4,000 shares of company stock worth $63,220. Insiders own 6.90% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AAOI. Benjamin F. Edwards & Company Inc. boosted its position in shares of Applied Optoelectronics by 83.2% during the fourth quarter. Benjamin F. Edwards & Company Inc. now owns 1,689 shares of the semiconductor company’s stock valued at $26,000 after buying an additional 767 shares during the last quarter. Oregon Public Employees Retirement Fund purchased a new position in Applied Optoelectronics in the fourth quarter worth about $110,000. Quantbot Technologies LP purchased a new position in Applied Optoelectronics in the third quarter worth about $115,000. NJ State Employees Deferred Compensation Plan purchased a new position in Applied Optoelectronics in the fourth quarter worth about $185,000. Finally, Jefferies Group LLC purchased a new position in Applied Optoelectronics in the third quarter worth about $224,000. 66.90% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Optoelectronics

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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