Shares of Alpha and Omega Semiconductor Limited (NASDAQ: AOSL) experienced a notable increase prior to the market opening on Thursday, November 5, 2023. The stock, which had closed at $19.00 the previous day, opened at $19.73 and was last traded at $19.6690 with a trading volume of 143,582 shares.
Analysts Adjust Price Targets
Recent assessments from various research analysts indicate a shift in sentiment toward Alpha and Omega Semiconductor. B. Riley reiterated a “neutral” rating but reduced its price target significantly from $40.00 to $24.00. This adjustment was part of a report issued on November 6. Similarly, Stifel Nicolaus lowered its price target for the company from $29.00 to $24.00, maintaining its “hold” rating.
On the other hand, Benchmark revised its price target down from $32.00 to $25.00, while also assigning a “buy” rating to the stock. Wall Street Zen downgraded its rating from “hold” to “sell,” and Weiss Ratings reiterated a “sell (d-)” rating. Overall, the consensus among analysts indicates one “buy,” two “holds,” and one “sell,” leading to an average rating of “hold” with a target price of $24.33, according to data from MarketBeat.com.
Quarterly Earnings Report Highlights
Alpha and Omega Semiconductor released its quarterly earnings data on November 5, revealing earnings per share (EPS) of $0.13, surpassing the analysts’ expectations of $0.10 by $0.03. The company reported revenue of $182.50 million, slightly below the anticipated $183.17 million. Year-over-year, revenue increased by 0.3%, though the company had reported an EPS of $0.21 during the same quarter last year.
The semiconductor firm also provided guidance for Q2 2026, projecting an EPS of -0.82 for the current year. This suggests ongoing challenges as the company navigates a competitive market landscape.
Institutional Investment Trends
Recent trading activity among hedge funds indicates increased interest in Alpha and Omega Semiconductor. Invesco Ltd. boosted its stake by an impressive 409.1% in the first quarter, acquiring a total of 759,509 shares valued at approximately $18.88 million. In a similar trend, Boston Partners escalated its position by 2,738.7%, now holding 595,137 shares worth $14.78 million.
Additional investments were made by Wellington Management Group LLP, which increased its ownership by 43.4%, now holding 908,043 shares valued at around $22.57 million. Overall, institutional investors and hedge funds own approximately 78.97% of Alpha and Omega Semiconductor’s stock, highlighting strong institutional confidence in the company’s future prospects.
Alpha and Omega Semiconductor Limited, headquartered in Hong Kong, specializes in the design, development, and supply of power semiconductor products utilized across various sectors, including computing, consumer electronics, and industrial applications. The company’s product offerings include metal-oxide-semiconductor field-effect transistors (MOSFETs), insulated gate bipolar transistors, and other components vital for electronic devices ranging from smartphones to electric vehicles.
As the semiconductor industry continues to evolve, Alpha and Omega Semiconductor’s performance and market position will be closely monitored by investors and analysts alike.
