Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 3.9% - Here's Why

Key Points

• AAOI shares rose 3.9% to $52.10 in Monday trading, with volume about 43% above its average.
• Analysts have a consensus “Moderate Buy” rating and an average price target of $111.60, though Rosenblatt recently cut its target from $220 to $115.
• The latest quarter beat estimates: earnings were $0.17 per share versus $0.14 expected, while revenue of $269.88 million grew 127.5% year over year.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s share price was up 3.9% on Monday. The company traded as high as $54.04 and last traded at $52.10. Approximately 15,277,094 shares changed hands during mid-day trading, an increase of 43% from the average daily volume of 10,652,387 shares. The stock had previously closed at $50.13.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the stock. Rosenblatt Securities lowered their target price on shares of Applied Optoelectronics from $220.00 to $115.00 and set a "buy" rating on the stock in a report on Friday. Weiss Ratings raised Applied Optoelectronics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, October 21st. Northland Securities raised Applied Optoelectronics from a "market perform" rating to an "outperform" rating and set a $120.00 price target for the company in a report on Monday, November 2nd. Raymond James Financial reiterated an "outperform" rating and issued a $178.00 price target on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Finally, Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $111.60.

Applied Optoelectronics Price Performance

The business's 50-day moving average price is $92.96 and its 200 day moving average price is $113.25. The company has a market capitalization of $4.41 billion, a P/E ratio of -121.16 and a beta of 4.04. The company has a quick ratio of 1.77, a current ratio of 2.34 and a debt-to-equity ratio of 0.10.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its earnings results on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.03. Applied Optoelectronics had a negative net margin of 4.39% and a negative return on equity of 0.17%. The business had revenue of $269.88 million for the quarter, compared to analyst estimates of $268.11 million. During the same quarter in the prior year, the firm posted ($0.09) EPS. Applied Optoelectronics's revenue was up 127.5% on a year-over-year basis. Analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 4,000 shares of the firm's stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total value of $411,480.00. Following the sale, the chief financial officer owned 363,168 shares of the company's stock, valued at $37,359,092.16. This trade represents a 1.09% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total value of $3,545,676.12. Following the sale, the insider owned 249,276 shares of the company's stock, valued at approximately $27,472,707.96. This trade represents a 11.43% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 52,172 shares of company stock worth $5,985,036 over the last ninety days. 3.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Knights of Columbus Asset Advisors LLC lifted its position in Applied Optoelectronics by 1.1% during the third quarter. Knights of Columbus Asset Advisors LLC now owns 20,427 shares of the semiconductor company's stock valued at $2,028,000 after purchasing an additional 221 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Applied Optoelectronics by 1.4% in the first quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company's stock worth $1,529,000 after acquiring an additional 243 shares in the last quarter. Allworth Financial LP grew its position in Applied Optoelectronics by 68.8% in the second quarter. Allworth Financial LP now owns 596 shares of the semiconductor company's stock worth $88,000 after acquiring an additional 243 shares in the last quarter. Polaris Financial Partners purchased a new position in Applied Optoelectronics in the third quarter worth $26,000. Finally, EFG International AG bought a new position in Applied Optoelectronics in the second quarter valued at $44,000. 61.70% of the stock is currently owned by institutional investors.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs and manufactures fiber-optic networking products used to transmit data over cable, telecommunications and data center networks. Its offerings include optical transceivers and other optical components and equipment.

The company serves customers in markets including broadband access, telecommunications and data centers. Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics has operations in the United States and Asia and serves customers internationally.

Founder Thompson Lin has served as the company's chief executive officer.

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