The stock of Applied Optoelectronics Inc. (NASDAQ:AAOI) decreased by -$0.24 on Tuesday to finish at $9.64, down -2.43 percent. The last five days have seen an average of 3,556,920 shares of common stock traded. 33 times new highs were reached in the current year, with a gain of $7.75. The average number of shares traded over the last 20 days was 2,715,750, while the average volume over the last 50 days totaled 4,450,262.
AAOI stock dropped -24.69% since last month. On 09/13/23, the company’s shares reached a one-month low of $8.82. The stock touched a high of $16.26 on 08/24/23, after rallying from a low of $1.60 in 52 weeks. The price of AAOI stock has risen by 410.05% or $7.75 this year, reaching a new high 33 times. Still, the stock price is down -40.71% from the 52-week high.
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Insider Transactions
AAOI stock investors should be aware that Applied Optoelectronics Inc. (AAOI) stock had its last reported insider trading activity 6 days ago on Sep 14. On Sep 14, President and CEO Lin Chih-Hsiang (Thompson) acquired 15,000 shares at $9.79 each. This transaction resulted in the insider spending $146,901. On Sep 06, Lin Chih-Hsiang (Thompson) added 5,964 shares at a price of US$12.44. After the transaction, the insider now owns 1,237,471 shares. Chief Financial Officer Murry Stefan J. had earlier sold 15,000 shares on Aug 22 for $15.88 a share. The transaction was completed for $238,216.
Valuation Metrics
Beta for the stock is 1.72. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 1.66, the price-to-book (PB) ratio of 1.74.
Financial Health
For the three months ended June 29, Applied Optoelectronics Inc.’s quick ratio was 0.40, while its current ratio was 0.80, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 15.60% percent. Applied Optoelectronics Inc.’s EBITDA margin for the year ended June 29 was -16.07%, whereas its operating margin stood at -29.10% for the same period. Based on annual data, it had gross profit of $33.63 million and revenue of $222.82 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AAOI’s return on assets (ROA) during the last 12 months has been -17.70%. There was a -17.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -38.40%.
Earnings Surprise
According to Applied Optoelectronics Inc.’s quarterly financial report for the quarter that ended June 29. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $40.9 million, while revenues fell by -27.87% to $53.03 million. It was predicted that Applied Optoelectronics Inc.’s quarterly earnings would be -$0.21, but it ended up being -$0.28, beating the consensus by 25.00%. EBITDA was -$10.46 million for the quarter. At the end of Applied Optoelectronics Inc.’s most recent quarter ended June 29, its liabilities totaled 193.62 million, while its total debt was $132.09 million. Equity owned by shareholders amounts to $32.13 million.
Technical Picture
Here’s a quick look at Applied Optoelectronics Inc.’s (AAOI) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 32.27%, suggesting the stock is Neutral, with a 114.76% historical volatility rate.
The stochastic %K and %D were 13.91% and 13.04% respectively, while the average true range (ATR) was 1.22. Based on the 14-day stochastic reading of 11.81%, the RSI (14) reading is 39.68%. On the 9-day MACD Oscillator, the stock is at -0.81, and the 14-day reading is at -1.91.
Analyst Ratings
In its most recent analyst report, B. Riley Securities raised its rating on Applied Optoelectronics Inc. (NASDAQ: AAOI) to a Buy. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Applied Optoelectronics Inc. (AAOI) an Overweight rating. AAOI is a stock that is recommended for selling by 0 brokerage firms, while 1 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 0 rates it overweight and 2 others recommend it as a buy.
What is AAOI’s price target for the next 12 months?
The current consensus forecast for the stock is between $11.50 and $20.00, with a median target price of $15.75. In analyzing these forecasts, the average price target given by analysts for Applied Optoelectronics Inc. (AAOI) is $15.75.
