Taking into account all relevant factors, Applied Optoelectronics, Inc. (NASDAQ:AAOI) scores 100% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for AAOI averaged 100% Buy with an average daily trading volume over the past 20 days at 699800 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 751294 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 625053 shares, is signaling100% Buy for long term investors.
The stock is lingering around the initial support level of $14.44. After this, the following support is at the zone of $13.28. Up until the time the AAOI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 68.53 on the daily chart, and this may be a cause for concern. In case the price goes below $13.28 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $16.22 level may cause a pull-back move approaching $16.84 mark.
Let’s take a glimpse at some insider activity at Applied Optoelectronics, Inc. (NASDAQ:AAOI) and observe the pattern. The earliest insider trade happened on 12/13/2019. Murry Stefan J. parted with a total of 6 thousand shares of the firm at average share price of $11.2. The total amount for the sale was set at $67.2 thousand. On completing this exchange, the CFO account balance was 57.31 thousand shares. The stock grew 31.96 percent from that insider sale. On 10/11/2019, Murry Stefan J., CFO, did a sale of 6 thousand shares at a price of $10.41 per share. This got rid of 62.46 thousand shares from the insider’s fortune and the stock experienced a 41.98 percent rally in price since the news became public. This exchange saw 65.44 thousand shares get out from the CFO account. On 02/01/2019, CFO Murry Stefan J. recorded a sale transaction valued at $17.37 thousand. The sale at $17.37 a share has eliminated 1 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -14.91 percent decrease since the transaction reporting date. The company insider is left with 61.07 thousand shares remaining in the account. Murry Stefan J., who works as CFO at the company, performed a sale of 1 thousand shares in a transaction worth $15.05 thousand. The disposal recorded on 01/02/2019 was priced at $15.05 per share. The stock price plunged -1.79 percent since the transaction. Murry Stefan J. currently holds a stake of 63.52 thousand in AAOI stock which is worth $915.32 thousand after the insider selling.
In the recent trading session, Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares lost -7.63% or -1.19 points to reach at $14.41 with a heavy trading volume of 913.884 thousand shares. It opened the trading session at $13.92, the shares rose to $15.68 and dropped to $13.9, the range by which the price of stock traded the whole session. The company now has a market cap of $317 million and currently has 20.32 million outstanding shares. Applied Optoelectronics, Inc. (AAOI) stock has accumulated 42.66 percent of market value in 21 trading days.
Stock analysts at Rosenblatt upped their rating on shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) from Neutral to a new rating of Buy in their opinion released on November 05. JP Morgan analysts have downgraded their rating of AAOI shares from Neutral to Underweight in a separate flash note to investors on October 22.
AAOI stock’s trailing 3-year beta is 2.09, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$1.88 share in the trailing 52 weeks. The stock’s value surged 31.31 percent year to date (YTD) compared to a decline of -3.47 percent in 52 week’s period. The firm’s shares are still trading -20.12 percent below its 1-year high of $18.04 and 72.78 percent up from 52-week low of $8.34. The average consensus ranking on the company is 3.1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.
Applied Optoelectronics, Inc. (AAOI) shares are trading at a P/E ratio of -6.88 times earnings posted in the trailing 12 months. The industry AAOI deals with has an average P/E of 23.2. Its P/B ratio is standing at 0.86X compared to the 5.77 industry average. It is additionally sporting a 1.12 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.69. Applied Optoelectronics, Inc. has a 22.7% gross profit margin, with its operating margin around -24.5%. Alongside this, the company’s net profit margin currently stands at -19.6%.
Past records have indicated that shares in Applied Optoelectronics, Inc. rose on 15 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of AAOI’s Q4 earnings on February 21. Analysts are predicting revenue to suffer decline of -19.2 percent to $47.61M in the financial fourth quarter, while EPS will soar by about 1050 percent to -$0.23 per share. In the last quarter, it’s earnings of -$0.15 per share came better than the -$0.23098, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $58.02M, missing the $60.3M analysts had expected. Earnings are seen to rise by -100.5 percent this year, 42.4 percent in the coming year and the trend continues by 13 percent every year in the next 5 years.