Applied Optoelectronics Inc (AAOI) Shares Decline Despite Market Challenges

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Applied Optoelectronics Inc (NASDAQ: AAOI)’s stock price has decreased by 0.00 compared to its previous closing price of 10.17. However, the company has seen a 1.19% increase in its stock price over the last five trading sessions. globenewswire.com reported 2024-06-11 that SUGAR LAND, Texas, June 11, 2024 (GLOBE NEWSWIRE) — Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced that it is set to join the broad-market Russell 3000® Index at the conclusion of the 2024 Russell US Indexes annual reconstitution, effective at the open of US equity markets on Monday, July 1st, according to a preliminary list of additions posted Friday, May 24th.

Is It Worth Investing in Applied Optoelectronics Inc (NASDAQ: AAOI) Right Now?

AAOI has 36-month beta value of 2.01. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 3 as “overweight,” 1 as “hold,” and 2 as “sell.”

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The public float for AAOI is 35.73M, and currently, short sellers hold a 27.66% ratio of that float. The average trading volume of AAOI on June 12, 2024 was 1.81M shares.

AAOI’s Market Performance

AAOI’s stock has seen a 1.19% increase for the week, with a -0.49% drop in the past month and a -28.68% fall in the past quarter. The volatility ratio for the week is 5.32%, and the volatility levels for the past 30 days are at 6.84% for Applied Optoelectronics Inc The simple moving average for the past 20 days is -9.54% for AAOI’s stock, with a -25.23% simple moving average for the past 200 days.

Analysts’ Opinion of AAOI

Many brokerage firms have already submitted their reports for AAOI stocks, with B. Riley Securities repeating the rating for AAOI by listing it as a “Neutral.” The predicted price for AAOI in the upcoming period, according to B. Riley Securities is $16 based on the research report published on February 23, 2024 of the current year 2024.

Rosenblatt, on the other hand, stated in their research note that they expect to see AAOI reach a price target of $23. The rating they have provided for AAOI stocks is “Buy” according to the report published on January 30th, 2024.

B. Riley Securities gave a rating of “Buy” to AAOI, setting the target price at $22 in the report published on December 13th of the previous year.

AAOI Trading at -10.95% from the 50-Day Moving Average

After a stumble in the market that brought AAOI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -58.91% of loss for the given period.

Volatility was left at 6.84%, however, over the last 30 days, the volatility rate increased by 5.32%, as shares surge +1.70% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -26.94% lower at present.

During the last 5 trading sessions, AAOI rose by +1.19%, which changed the moving average for the period of 200-days by -27.82% in comparison to the 20-day moving average, which settled at $11.25. In addition, Applied Optoelectronics Inc saw -47.36% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AAOI starting from Yeh William H, who purchase 9,800 shares at the price of $10.54 back on May 14 ’24. After this action, Yeh William H now owns 217,055 shares of Applied Optoelectronics Inc, valued at $103,292 using the latest closing price.

Lin Che-Wei, the Director of Applied Optoelectronics Inc, purchase 31,370 shares at $12.70 during a trade that took place back on Mar 18 ’24, which means that Lin Che-Wei is holding 220,133 shares at $398,283 based on the most recent closing price.

Stock Fundamentals for AAOI

Current profitability levels for the company are sitting at:

  • -0.24 for the present operating margin
  • 0.28 for the gross margin

The net margin for Applied Optoelectronics Inc stands at -0.31. The total capital return value is set at -0.18. Equity return is now at value -34.16, with -17.13 for asset returns.

Based on Applied Optoelectronics Inc (AAOI), the company’s capital structure generated 0.36 points at debt to capital in total, while cash flow to debt ratio is standing at -0.24. The debt to equity ratio resting at 0.57. The interest coverage ratio of the stock is -9.79.

Currently, EBITDA for the company is -26.84 million with net debt to EBITDA at -2.48. When we switch over and look at the enterprise to sales, we see a ratio of 2.41. The receivables turnover for the company is 3.55for trailing twelve months and the total asset turnover is 0.59. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.79.

Conclusion

To put it simply, Applied Optoelectronics Inc (AAOI) has had a mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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