Applied Optoelectronics Inc [AAOI] moved down -15.09: Why It’s Important

Applied Optoelectronics Inc [NASDAQ: AAOI] loss -15.09% or -3.26 points to close at $18.34 with a heavy trading volume of 8056337 shares. The company report on December 22, 2023 at 7:00 AM that Applied Optoelectronics’ Subsidiary Global Technology Inc. Filed Patent Infringement Lawsuits Against CreaLights in China.

The two complaints, filed on December 8, 2023 in the Suzhou Intermediate People’s Court of the People’s Republic of China, allege that at least the CreaLights 100G QSFP28 CWDM4 optical transceiver module infringes AOI’s Chinese patent No. ZL201780050835.X, entitled “Optical transceiver with a multiplexing device positioned off-center within a transceiver housing to reduce fiber bending loss”, which was filed on August 18, 2017, and the CreaLights 100G QSFP28 CWDM4 and 100G QSFP28 PSM4 optical transceiver modules infringe Global Technology’s Chinese patent No. ZL201720846636.7, entitled “High speed optical transceiver module”, which was filed on July 13, 2017.

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It opened the trading session at $21.66, the shares rose to $21.83 and dropped to $16.701, the range by which the price of stock traded the whole day. The daily chart for AAOI points out that the company has recorded 72.05% gains over the past six months. However, it is still -1046.25% lower than its most recent low trading price.

If we look at the average trading volume of 2.61M shares, AAOI reached to a volume of 8056337 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Applied Optoelectronics Inc [AAOI]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AAOI shares is $21.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AAOI stock is a recommendation set at 1.75. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

B. Riley Securities have made an estimate for Applied Optoelectronics Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on December 13, 2023.

The Average True Range (ATR) for Applied Optoelectronics Inc is set at 2.14, with the Price to Sales ratio for AAOI stock in the period of the last 12 months amounting to 2.98. The Price to Book ratio for the last quarter was 3.52, with the Price to Cash per share for the same quarter was set at 0.88.

Trading performance analysis for AAOI stock

Applied Optoelectronics Inc [AAOI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.03. With this latest performance, AAOI shares dropped by -1.19% in over the last four-week period, additionally plugging by 72.05% over the last 6 months – not to mention a rise of 765.09% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AAOI stock in for the last two-week period is set at 47.37, with the RSI for the last a single of trading hit 42.07, and the three-weeks RSI is set at 50.82 for Applied Optoelectronics Inc [AAOI]. The present Moving Average for the last 50 days of trading for this stock 16.26, while it was recorded at 20.41 for the last single week of trading, and 9.09 for the last 200 days.

Applied Optoelectronics Inc [AAOI]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Applied Optoelectronics Inc [AAOI] shares currently have an operating margin of -26.48 and a Gross Margin at +14.82. Applied Optoelectronics Inc’s Net Margin is presently recorded at -29.80.

Return on Total Capital for AAOI is now -15.85, given the latest momentum, and Return on Invested Capital for the company is -21.59. Return on Equity for this stock declined to -30.23, with Return on Assets sitting at -15.39. When it comes to the capital structure of this company, Applied Optoelectronics Inc [AAOI] has a Total Debt to Total Equity ratio set at 84.22. Additionally, AAOI Total Debt to Total Capital is recorded at 45.72, with Total Debt to Total Assets ending up at 38.09. Long-Term Debt to Equity for the company is recorded at 46.03, with the Long-Term Debt to Total Capital now at 24.99.

Reflecting on the efficiency of the workforce at the company, Applied Optoelectronics Inc [AAOI] managed to generate an average of -$30,003 per employee. Receivables Turnover for the company is 3.79 with a Total Asset Turnover recorded at a value of 0.52.Applied Optoelectronics Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.51 and a Current Ratio set at 0.87.

Applied Optoelectronics Inc [AAOI]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AAOI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Applied Optoelectronics Inc go to 13.00%.

An analysis of Institutional ownership at Applied Optoelectronics Inc [AAOI]

The top three institutional holders of AAOI stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in AAOI stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in AAOI stock with ownership which is approximately 5.8325%.