Zacks Investment Research cut shares of Applied Optoelectronics (NASDAQ:AAOI) from a hold rating to a sell rating in a report published on Tuesday.

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. “

Other equities research analysts also recently issued research reports about the stock. BidaskClub downgraded shares of Applied Optoelectronics from a strong-buy rating to a buy rating in a research note on Monday, June 18th. Needham & Company LLC downgraded shares of Applied Optoelectronics from a strong-buy rating to a buy rating in a research report on Wednesday, August 8th. They noted that the move was a valuation call. DA Davidson reissued a buy rating and issued a $36.00 target price on shares of Applied Optoelectronics in a research report on Monday, October 1st. Loop Capital reissued a hold rating and issued a $45.00 target price on shares of Applied Optoelectronics in a research report on Wednesday, August 8th. Finally, Piper Jaffray Companies reissued a hold rating and issued a $43.00 target price on shares of Applied Optoelectronics in a research report on Wednesday, August 8th. Seven research analysts have rated the stock with a sell rating, two have issued a hold rating and four have issued a buy rating to the company. The stock presently has an average rating of Hold and a consensus target price of $31.78.

Applied Optoelectronics stock opened at $23.37 on Tuesday. Applied Optoelectronics has a 12-month low of $20.76 and a 12-month high of $50.30. The firm has a market cap of $485.75 million, a P/E ratio of 5.52, a PEG ratio of 0.93 and a beta of 2.61. The company has a current ratio of 3.22, a quick ratio of 1.92 and a debt-to-equity ratio of 0.17.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings results on Tuesday, August 7th. The semiconductor company reported $0.64 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.34 by $0.30. Applied Optoelectronics had a net margin of 10.95% and a return on equity of 14.77%. The firm had revenue of $87.82 million for the quarter, compared to the consensus estimate of $77.29 million. On average, equities analysts expect that Applied Optoelectronics will post 1.89 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. increased its position in shares of Applied Optoelectronics by 10.6% in the 2nd quarter. BlackRock Inc. now owns 2,827,109 shares of the semiconductor company’s stock worth $126,935,000 after purchasing an additional 271,712 shares during the last quarter. Dimensional Fund Advisors LP grew its position in shares of Applied Optoelectronics by 17.9% during the 2nd quarter. Dimensional Fund Advisors LP now owns 359,689 shares of the semiconductor company’s stock valued at $16,150,000 after buying an additional 54,595 shares during the last quarter. Guggenheim Capital LLC grew its position in shares of Applied Optoelectronics by 46.8% during the 1st quarter. Guggenheim Capital LLC now owns 225,410 shares of the semiconductor company’s stock valued at $5,650,000 after buying an additional 71,895 shares during the last quarter. Northern Trust Corp grew its position in shares of Applied Optoelectronics by 3.2% during the 2nd quarter. Northern Trust Corp now owns 224,674 shares of the semiconductor company’s stock valued at $10,088,000 after buying an additional 6,884 shares during the last quarter. Finally, Principal Financial Group Inc. grew its position in shares of Applied Optoelectronics by 4.4% during the 1st quarter. Principal Financial Group Inc. now owns 186,911 shares of the semiconductor company’s stock valued at $4,684,000 after buying an additional 7,875 shares during the last quarter. 72.36% of the stock is owned by institutional investors.

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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