Raymond James has recently raised Applied Optoelectronics Inc (AAOI) stock to Outperform rating, as announced on September 3, 2024, according to Finviz. Earlier, on February 23, 2024, B. Riley Securities had reduced the stock from a Buy to Neutral, setting a price target of $16 for AAOI stock. Rosenblatt also initiated Buy rating with a price target of $23. Additionally, B. Riley Securities reiterated Buy rating on December 13, 2023, with a target price of $22. B. Riley Securities analysts, in their report published on August 4, 2023, also raised Buy rating and set a price target of $2.50 for Applied Optoelectronics Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Applied Optoelectronics Inc (AAOI) Stock Trading Recap
On Thursday, Applied Optoelectronics Inc (AAOI) stock saw a decline, ending the day at $15.62 which represents a decrease of $-0.73 or -4.46% from the prior close of $16.35. The stock opened at $16.01 and touched a low of $15.5 during the day, reaching a high of $16.22. The volume of shares traded was 1.73 million falling short of the average volume of 2.51 million.
AAOI Stock Performance and Moving Averages
In recent trading, Applied Optoelectronics Inc (AAOI) stock price has shown some volatility, fluctuating -10.49% over the last five trades and 13.60% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 50.92%, and it has gained 104.18% in the previous three months. Currently, AAOI is trading at -8.68%, 7.72%, and 22.07% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AAOI, a Technology sector stock, is trading -36.89% below its 52-week high but remains 133.13% above its 52-week low. The Average True Range (ATR) (14 days) of 1.29 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Applied Optoelectronics Inc’s Profitability and Valuation Ratios
Applied Optoelectronics Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -28.56% and a profit margin of -34.84%, with a gross margin of 50.92%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Applied Optoelectronics Inc’s market capitalization stands at $638.79 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 27.25. Additionally, the Price-to-Sales Ratio is 3.09, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.4, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 8.03% of Applied Optoelectronics Inc (AAOI)’s shares, while financial institutions hold 74.27%.
Notable insider trades include Kuo David C, *** See Remarks at Applied Optoelectronics Inc (AAOI), who sold 10000 shares on Sep 24 ’24, at $15.02 each, totaling $0.15 million. On Jan 16 ’24, Murry Stefan J., Chief Financial Officer, sold 20000 shares for $17.08 each, amounting to $0.34 million. Additionally, on Dec 14 ’23, Yeh Shu-Hua (Joshua) sold 42779 shares at $22.39 each, generating $0.96 million.
