Applied Optoelectronics (NASDAQ:AAOI) Issues Earnings Results

Key Points

• Applied Optoelectronics beat quarterly estimates, reporting earnings of $0.17 per share versus $0.14 expected and revenue of $269.88 million versus $268.11 million. The company still posted a negative net margin of 9.57%.
• Shares fell 20.9% to $46.89 in Thursday trading, on volume well above the stock’s average.
• Analyst views were mixed, with a MarketBeat consensus rating of “Moderate Buy” and a $156 average price target; insiders also sold 52,172 shares over the past 90 days.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) released its earnings results on Thursday. The semiconductor company reported $0.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.03, FiscalAI reports. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The business had revenue of $269.88 million during the quarter, compared to the consensus estimate of $268.11 million.

Applied Optoelectronics Trading Down 20.9%

Shares of NASDAQ:AAOI traded down $12.38 during mid-day trading on Thursday, hitting $46.89. The company had a trading volume of 27,014,926 shares, compared to its average volume of 10,543,311. The company has a market capitalization of $3.97 billion, a PE ratio of -60.12 and a beta of 4.04. Applied Optoelectronics has a one year low of $18.50 and a one year high of $233.67. The firm has a fifty day moving average price of $95.56 and a 200 day moving average price of $113.14. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13.

Analyst Upgrades and Downgrades

AAOI has been the topic of a number of analyst reports. B. Riley Financial reduced their price objective on shares of Applied Optoelectronics from $109.00 to $92.00 and set a "neutral" rating on the stock in a research note on Thursday, October 15th. Rosenblatt Securities restated a "buy" rating and issued a $220.00 target price on shares of Applied Optoelectronics in a report on Friday, August 7th. Northland Securities raised shares of Applied Optoelectronics from a "market perform" rating to an "outperform" rating and set a $120.00 price target on the stock in a research report on Monday. Weiss Ratings raised shares of Applied Optoelectronics from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, October 21st. Finally, Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $156.00.

Insiders Place Their Bets

In other Applied Optoelectronics news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction on Monday, October 5th. The shares were sold at an average price of $120.03, for a total value of $720,180.00. Following the completion of the sale, the insider directly owned 371,498 shares of the company's stock, valued at approximately $44,590,904.94. The trade was a 1.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the company's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the transaction, the insider owned 249,276 shares in the company, valued at $27,472,707.96. This represents a 11.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 52,172 shares of company stock worth $5,985,036. 3.80% of the stock is currently owned by company insiders.

About Applied Optoelectronics

Applied Optoelectronics, Inc NASDAQ: AAOI develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.

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