Applied Optoelectronics Experiences High Options Volume

Applied Optoelectronics, Inc. (NASDAQ:AAOI) saw an interesting surge in options trading activity recently. On Thursday, investors purchased 11,569 call options, which signifies a 62% increase compared to the company’s average daily volume of 7,148 call options.

Price Performance of Applied Optoelectronics

On Friday, NASDAQ:AAOI opened at $21.86. Over the past year, the stock has fluctuated with a 52-week low of $6.70 and a high of $44.50. The fifty-day moving average stands at $30.33, while the two-hundred-day moving average is at $24.02. Applied Optoelectronics has a market capitalization of around $1.02 billion, a P/E ratio of -10.61, and a beta of 2.36. Its quick ratio is 1.06, the current ratio is 1.61, and the debt-to-equity ratio is 0.36.

Recently, on February 26th, Applied Optoelectronics provided its quarterly earnings report. The semiconductor firm reported an earnings per share (EPS) of ($0.09), missing the analysts’ expected EPS of ($0.02) by $0.07. The company’s return on equity was negative at -22.36%, and it reported a negative net margin of 38.61%. The company's revenue for the quarter was $100.27 million, which was slightly above the analysts’ anticipated $99.92 million. Analysts predict that Applied Optoelectronics will report an EPS of -1.18 for the current year.

Insider Trading at Applied Optoelectronics

In other news related to insider activity, Director William H. Yeh sold 10,000 shares of stock on December 3rd, at an average price of $43.08, totaling $430,800. Following this transaction, he holds 223,538 shares, valued at approximately $9,630,017.04, reflecting a 4.28% decrease in his position. This information was disclosed in a filing with the Securities & Exchange Commission (SEC). Additionally, CFO Stefan J. Murry sold 2,298 shares on January 21st for $80,820.66, reducing his holdings to 209,831 shares valued at about $7,379,756.27, which represents a 1.08% decrease. In the last three months, insiders have sold a total of 36,298 shares valued at $1,281,201, with corporate insiders currently owning 5.40% of the stock.

Institutional Investors and Hedge Fund Activity

Several significant investors have recently adjusted their positions in Applied Optoelectronics. GF Fund Management CO. LTD. acquired a new stake worth approximately $5,068,000 in the fourth quarter. UBS AM, a unit of UBS ASSET MANAGEMENT AMERICAS LLC, increased its stake by 17.4%, obtaining 78,959 shares now valued at $2,910,000 after acquiring an additional 11,684 shares. Voloridge Investment Management LLC also took a new position during this time, worth about $13,035,000. Moreover, Two Sigma Advisers LP boosted its position by 265.8%, resulting in ownership of 57,800 shares valued at $2,131,000. Institutional investors and hedge funds currently hold 61.72% of the stock.

Analysts' Predictions for Applied Optoelectronics

Various research analysts have offered their views on AAOI shares. Raymond James has raised the price target to $31.00 and assigned a “buy” rating. StockNews.com has upgraded the stock to a “sell” rating. Meanwhile, B. Riley downgraded shares from a “neutral” rating to a “sell” rating, with a target price reduced to $14.00. Northland Securities, however, has maintained an “outperform” rating, raising the target price to $40.00, up from the previous $25.00. Lastly, Rosenblatt Securities continues to recommend the stock as a “buy,” setting a target price of $44.00. Currently, two analysts rate the stock as a sell, one as hold, and three as buy. The consensus rating for the company is currently “Hold,” with an average target price of $27.60.

Company Overview of Applied Optoelectronics

Applied Optoelectronics, Inc. specializes in designing, manufacturing, and selling fiber-optic networking products in various markets, including the United States, Taiwan, and China. Its product offerings include optical modules, filters, lasers, transceivers, and other essential networking equipment.

Options, Trading, Investors, Earnings, Performance