Watching Applied Optoelectronics Inc. (AAOI) For Insider Activity

Applied Optoelectronics Inc. (NASDAQ:AAOI) finished Friday with a subtraction of -$0.02 to close at $7.50, a downside of -0.27 percent. An average of 283,120 shares of common stock have been traded in the last five days. There was a gain of $0.28 in the past week, and it reached a new high 8 times over the past 12 months. The last 20 days have seen an average of 291,470 shares traded, while the 50-day average volume stands at 363,144.

AAOI stock has increased by 4.75% in the last month. The company shares reached their 1-month lowest point of $6.71 on 10/06/21. With the stock rallying to its 52-week high on 01/27/21, shares of the company touched a low of $6.39 and a high of $13.95 in 52 weeks. It has reached a new high 12 times so far this year and lost -11.87% or -$1.01 in price. In spite of this, the price is down -46.23% from the 52-week high.

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Insider Transactions

249 days have passed since Applied Optoelectronics Inc. (AAOI) last reported insider trading activity. Chang Hung-Lun (Fred), who is *** See Remarks, most recently acquired $1,080 shares at $12.25 per share on Feb 16. In this transaction, the insider spent $13,233. Chief Financial Officer, Murry Stefan J., disposed of 4,000 shares at a price of $12.26 on Feb 16. The insider now owns more than $49,046 worth of shares. Prior to that, General Counsel and Secretary Kuo David C went on to Sale 1,000 shares at $12.36 each on Feb 10. An amount of $12,359 was transacted.

Valuation Metrics

Applied Optoelectronics Inc. (AAOI) has a trailing price-to-earnings (P/E) ratio of 31.10 for the broader industry and 38.99 for the sector. In the last five years, Applied Optoelectronics Inc.’s PE ratio has ranged between 41.52 and 6.462. The stock’s beta is 1.77. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.89, the price-to-book (PB) ratio at 0.73.

The quick ratio of Applied Optoelectronics Inc. for the three months ended June 29 was 1.20, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.35 and a total debt to equity ratio of 0.53 for the quarter ending June 29. Its gross profit as reported stood at $50.54 million compared to revenue of $234.62 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Applied Optoelectronics Inc.’s return on assets was -9.70%. For the broader industry, ROE averaged -0.25 over the past year.

Earnings Surprise

For the three-month period that ended June 29, Applied Optoelectronics Inc. had $19.36 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$8.2 million in the quarter, while revenues of -$15.62 million were shrunk -126.83%. The analyst consensus anticipated Applied Optoelectronics Inc.’s latest quarter earnings to come in at -$0.18 per share, but it turned out to be -$0.15, a 16.70% surprise. For the quarter, EBITDA amounted to -$7.01 million. Shareholders own equity worth $27.14 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Applied Optoelectronics Inc. (AAOI) price momentum. RSI 9-day as of the close on 22 October was 65.24%, suggesting the stock is Neutral, with historical volatility in this time frame at 37.95%.

As of today, AAOI’s price is $7.40 +3.88% or $0.28 from its 5-day moving average. AAOI is currently trading +3.59% higher than its 20-day SMA and -13.19% lower than its 100-day SMA. However, the stock’s current price level is +7.14% above the SMA50 and -22.20% below the SMA200.

The stochastic %K and %D were 87.11% and 81.15%, respectively, and the average true range (ATR) was 0.26. With the 14-day stochastic at 87.78% and the average true range at 0.27, the RSI (14) stands at 59.55%. The stock has reached 0.20 on the 9-day MACD Oscillator while the 14-day reading was at 0.35.

Analyst Ratings

Needham downgraded Applied Optoelectronics Inc. (NASDAQ: AAOI) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Applied Optoelectronics Inc. (AAOI) among analysts is Hold. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AAOI, while 6 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.

What is AAOI’s price target for the next 12 months?

Analysts predict a range of price targets between $7.00 and $14.00, with a median target of $8.00. Taking a look at these predictions, the average price target given by analysts for Applied Optoelectronics Inc. (AAOI) stock is $8.83.


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