Applied Optoelectronics Inc (NASDAQ: AAOI)’s stock price has dropped by -4.08 in relation to previous closing price of 28.99. Nevertheless, the company has seen a loss of -18.05% in its stock price over the last five trading days. zacks.com reported 2025-01-14 that Though growing applications across AI and hyperscale computing are aiding Applied Optoelectronics’ growth, rising expenses are weighing on margins.
Is It Worth Investing in Applied Optoelectronics Inc (NASDAQ: AAOI) Right Now?
The 36-month beta value for AAOI is also noteworthy at 2.41. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 1 rating it as “overweight,” 0 rating it as “hold,” and 1 rating it as “sell.”
The public float for AAOI is 44.56M, and at present, short sellers hold a 18.89% of that float. The average trading volume of AAOI on January 14, 2025 was 3.72M shares.
AAOI’s Market Performance
AAOI’s stock has seen a -18.05% decrease for the week, with a -17.43% drop in the past month and a 55.69% gain in the past quarter. The volatility ratio for the week is 8.91%, and the volatility levels for the past 30 days are at 10.47% for Applied Optoelectronics Inc The simple moving average for the last 20 days is -20.25% for AAOI’s stock, with a simple moving average of 65.85% for the last 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 “Sell.” The predicted price for AAOI in the upcoming period, according to B. Riley Securities is $14 based on the research report published on December 10, 2024 of the previous year 2024.
Raymond James, on the other hand, stated in their research note that they expect to see AAOI reach a price target of $17. The rating they have provided for AAOI stocks is “Outperform” according to the report published on September 03rd, 2024.
B. Riley Securities gave a rating of “Neutral” to AAOI, setting the target price at $16 in the report published on February 23rd of the previous year.
AAOI Trading at -13.94% 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 -37.51% of loss for the given period.
Volatility was left at 10.47%, however, over the last 30 days, the volatility rate increased by 8.91%, as shares sank -14.97% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +71.62% upper at present.
During the last 5 trading sessions, AAOI fell by -17.30%, which changed the moving average for the period of 200-days by +101.00% in comparison to the 20-day moving average, which settled at $34.88. In addition, Applied Optoelectronics Inc saw -24.56% 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 BLACK RICHARD B, who sale 10,000 shares at the price of $35.27 back on Dec 16 ’24. After this action, BLACK RICHARD B now owns 167,813 shares of Applied Optoelectronics Inc, valued at $352,672 using the latest closing price.
Yeh William H, the Director of Applied Optoelectronics Inc, proposed sale 10,000 shares at $43.08 during a trade that took place back on Dec 03 ’24, which means that Yeh William H is holding shares at $430,807 based on the most recent closing price.
Stock Fundamentals for AAOI
Current profitability levels for the company are sitting at:
- -0.33 for the present operating margin
- 0.26 for the gross margin
The net margin for Applied Optoelectronics Inc stands at -0.39. The total capital return value is set at -0.24. Equity return is now at value -41.44, with -20.64 for asset returns.
Based on Applied Optoelectronics Inc (AAOI), the company’s capital structure generated 0.34 points at debt to capital in total, while cash flow to debt ratio is standing at -0.39. The debt to equity ratio resting at 0.53. The interest coverage ratio of the stock is -8.41.
Currently, EBITDA for the company is -26.18 million with net debt to EBITDA at -1.45. When we switch over and look at the enterprise to sales, we see a ratio of 6.74. The receivables turnover for the company is 2.79for trailing twelve months and the total asset turnover is 0.51. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.61.
Conclusion
In summary, Applied Optoelectronics Inc (AAOI) has had a mixed performance as of late. Analysts have bullish opinions on the stock, with some viewing 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.
