Adding This Stock to the Watchlist.
Semiconductor manufacturing - Bringing AI into everyday life.
I want to share my insights about a company that has recently caught my attention – Alpha and Omega Semiconductor, ticker symbol AOSL. I’m putting this stock on my watchlist, and I think you might be interested in knowing why.
Earnings and Revenue
AOSL recently released their quarterly earnings report, and although I’m not blown away by positive numbers, their results are somewhat promising. They reported a loss of $0.04 per share, but although it was a loss, it was significantly higher than the consensus estimate of a $0.14 loss. This is an even further substantial than the $0.21 per share loss from this time a year ago.
This earnings report beat expectations by over 71% of what some analysts were expecting. Also, it is notable that this isn’t a one-off occurrence either. Over the last four quarters, AOSL has consistently surpassed consensus EPS estimates. In the previous quarter, they posted earnings of $0.24 per share beating expectations by 60%. Although I like a company that is consistently in the green on earnings, the trend here is what is catching my eye.
The company also reported revenues of $150.06 million for the quarter ended in March 2024 which beat consensus estimates by .04%. Again, they’ve managed to top consensus revenue estimates in each of the last four quarters as well.
Ownership
This isn’t a low float stock but it has a “lowerish” float with 27.65 million shares outstanding and only 22.95 shares in the float that are available to trade. What I like here is that institutional investors have bought up 67% of the shares further reducing the shares available for the rest of us – and if you’ve watched my videos where I talk about this, you know how I feel about supply and demand. Company insiders own about 20%. This high level of insider and institutional ownership can often be a positive sign for upward movement.
From the beginning of the year to April 19th, the shares fell over 28% but have come back up from that low to be flat Year-To-Date.
Industry
It’s important to keep an eye on the industry right now, other semiconductor companies are making news right now and the demand for AI chips and AI chip technology I believe is still in its infancy stage. Read a recent press release form Alpha and Omega Semiconductor HERE that discusses some of their recent technology.
So there you have it earnings, ownership, the chart – These are just a few items that have me putting AOSL on my watch list as a stock worth paying attention to.
