Applied Optoelectronics (NASDAQ:AAOI) Trading Up 8% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) traded up 8% during trading on Thursday . The company traded as high as $26.95 and last traded at $27.03. 1,015,918 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 2,872,368 shares. The stock had previously closed at $25.03.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. Northland Securities reaffirmed an “outperform” rating and issued a $40.00 target price (up from $25.00) on shares of Applied Optoelectronics in a research report on Wednesday, December 18th. B. Riley cut shares of Applied Optoelectronics from a “neutral” rating to a “sell” rating and set a $14.00 price target for the company. in a research note on Tuesday, December 10th. StockNews.com upgraded shares of Applied Optoelectronics to a “sell” rating in a research note on Friday, January 31st. Rosenblatt Securities increased their price target on shares of Applied Optoelectronics from $27.50 to $44.00 and gave the stock a “buy” rating in a research note on Friday, December 13th. Finally, Raymond James increased their price target on shares of Applied Optoelectronics from $17.00 to $39.00 and gave the stock an “outperform” rating in a research note on Friday, December 20th. Two investment analysts have rated the stock with a sell rating, one has given a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $29.20.

Applied Optoelectronics Price Performance

The company has a market cap of $1.29 billion, a price-to-earnings ratio of -13.32 and a beta of 2.36. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.36. The company’s 50 day moving average price is $32.49 and its 200 day moving average price is $22.64.

Insider Transactions at Applied Optoelectronics

In related news, insider Hung-Lun (Fred) Chang sold 20,323 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, November 20th. The stock was sold at an average price of $30.35, for a total transaction of $616,803.05. Following the completion of the transaction, the insider now directly owns 195,572 shares in the company, valued at $5,935,610.20. The trade was a 9.41 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Stefan J. Murry sold 2,298 shares of the company’s stock in a transaction that occurred on Tuesday, January 21st. The shares were sold at an average price of $35.17, for a total value of $80,820.66. Following the completion of the sale, the chief financial officer now directly owns 209,831 shares in the company, valued at approximately $7,379,756.27. The trade was a 1.08 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 93,067 shares of company stock worth $3,243,938. Company insiders own 5.40% of the company’s stock.

Institutional Trading of Applied Optoelectronics

A number of large investors have recently made changes to their positions in AAOI. XTX Topco Ltd acquired a new position in Applied Optoelectronics in the 3rd quarter valued at $1,109,000. Harbor Capital Advisors Inc. purchased a new position in Applied Optoelectronics during the third quarter worth about $1,319,000. Westfield Capital Management Co. LP acquired a new stake in Applied Optoelectronics in the 3rd quarter worth about $19,019,000. Virtu Financial LLC acquired a new position in shares of Applied Optoelectronics during the 3rd quarter valued at about $353,000. Finally, Affinity Wealth Management LLC acquired a new stake in shares of Applied Optoelectronics in the fourth quarter worth approximately $7,965,000. Institutional investors and hedge funds own 61.72% of the company’s stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.