Alpha and Omega Semiconductor (NASDAQ:AOSL) Shares Gap Down – Should You Sell?

Alpha and Omega Semiconductor Limited (NASDAQ:AOSL) gapped down prior to trading on Tuesday . The stock had previously closed at $49.36, but opened at $44.02. Alpha and Omega Semiconductor shares last traded at $46.96, with a volume of 112,652 shares changing hands.

Analyst Upgrades and Downgrades

AOSL has been the subject of several recent research reports. B. Riley Financial boosted their price objective on Alpha and Omega Semiconductor from $19.00 to $25.00 and gave the company a “neutral” rating in a research report on Monday, April 13th. Needham & Company LLC began coverage on shares of Alpha and Omega Semiconductor in a report on Friday, May 1st. They issued a “buy” rating and a $50.00 price target on the stock. Wall Street Zen downgraded shares of Alpha and Omega Semiconductor from a “hold” rating to a “sell” rating in a research note on Saturday, June 6th. Zacks Research upgraded shares of Alpha and Omega Semiconductor from a “strong sell” rating to a “hold” rating in a report on Monday, April 6th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Alpha and Omega Semiconductor in a research note on Monday, April 20th. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $30.50.

Alpha and Omega Semiconductor Stock Down 7.7%

The firm’s 50-day moving average is $41.66 and its 200-day moving average is $28.68. The company has a market cap of $1.36 billion, a PE ratio of -12.82 and a beta of 2.55.

Alpha and Omega Semiconductor (NASDAQ:AOSL) last issued its quarterly earnings results on Wednesday, May 6th. The semiconductor company reported ($0.28) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.06. The company had revenue of $163.79 million for the quarter, compared to analysts’ expectations of $160.07 million. Alpha and Omega Semiconductor had a negative return on equity of 4.30% and a negative net margin of 15.51%.The firm’s revenue for the quarter was down .5% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.10) earnings per share. As a group, equities research analysts anticipate that Alpha and Omega Semiconductor Limited will post -1.5 EPS for the current fiscal year.

Insider Transactions at Alpha and Omega Semiconductor

In related news, CEO Stephen Chunping Chang sold 14,884 shares of the business’s stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $34.47, for a total transaction of $513,051.48. Following the sale, the chief executive officer owned 635,901 shares of the company’s stock, valued at $21,919,507.47. The trade was a 2.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Yifan Liang sold 8,625 shares of the company’s stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $35.00, for a total transaction of $301,875.00. Following the completion of the sale, the chief financial officer owned 270,003 shares in the company, valued at approximately $9,450,105. This trade represents a 3.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 62,368 shares of company stock valued at $2,092,671 in the last three months. 16.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Alpha and Omega Semiconductor

Large investors have recently made changes to their positions in the business. Weber Capital Management LLC ADV purchased a new stake in shares of Alpha and Omega Semiconductor in the 4th quarter worth approximately $10,842,000. State Street Corp increased its position in Alpha and Omega Semiconductor by 21.6% during the 4th quarter. State Street Corp now owns 1,474,175 shares of the semiconductor company’s stock valued at $29,203,000 after buying an additional 262,117 shares in the last quarter. Millennium Management LLC raised its stake in Alpha and Omega Semiconductor by 57.5% during the third quarter. Millennium Management LLC now owns 637,876 shares of the semiconductor company’s stock valued at $17,835,000 after buying an additional 232,817 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Alpha and Omega Semiconductor by 12.7% in the second quarter. The Manufacturers Life Insurance Company now owns 1,411,400 shares of the semiconductor company’s stock worth $36,217,000 after acquiring an additional 158,869 shares in the last quarter. Finally, UBS Group AG boosted its holdings in Alpha and Omega Semiconductor by 224.7% in the fourth quarter. UBS Group AG now owns 217,121 shares of the semiconductor company’s stock worth $4,301,000 after acquiring an additional 150,254 shares in the last quarter. 78.97% of the stock is currently owned by hedge funds and other institutional investors.

About Alpha and Omega Semiconductor

Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) is a designer and supplier of power semiconductor components used in power management applications across a range of electronic systems. The company offers a broad portfolio of discrete and integrated power devices, including power MOSFETs, rectifiers, voltage regulators, and power management ICs. These products are optimized for high efficiency, compact form factors and thermal performance, catering to the growing demands of energy-sensitive applications in computing, consumer electronics, communications and industrial markets.

Since its founding in 2000, Alpha and Omega Semiconductor has leveraged in-house design expertise and strategic partnerships with manufacturing facilities to deliver scalable, high-volume production.