why Applied Optoelectronics Inc [AAOI] is a Good Choice for Investors After New Price Target of $22.50

Applied Optoelectronics Inc [NASDAQ: AAOI] gained 6.04% on the last trading session, reaching $20.35 price per share at the time. The company report on February 22, 2024 at 8:52 PM that CORRECTION – Applied Optoelectronics Reports Fourth Quarter and Full Year 2023 Results.

In a release issued under the same headline earlier today by Applied Optoelectronics, Inc. (NASDAQ: AAOI), please note the third bullet point under the section “First Quarter 2024 Business Outlook” cited non-GAAP net losses ranging from $18.9 million to $20.8 million. By contrast, those numbers should have indicated a net loss ranging from $10.9 million to $12.6 million.

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If compared to the average trading volume of 3.27M shares, AAOI reached a trading volume of 6072633 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 $22.50 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.

Rosenblatt have made an estimate for Applied Optoelectronics Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 30, 2024. While these analysts kept the previous recommendation, B. Riley Securities raised their target price from $13.50 to $22. The new note on the price target was released on December 13, 2023, representing the official price target for Applied Optoelectronics Inc stock. Previously, the target price had yet another raise from $2.50 to $11.50, while B. Riley Securities kept a Buy rating on AAOI stock. On February 25, 2022, analysts decreased their price target for AAOI shares from 7 to 2.50.

The Average True Range (ATR) for Applied Optoelectronics Inc is set at 2.01, with the Price to Sales ratio for AAOI stock in the period of the last 12 months amounting to 3.31. The Price to Book ratio for the last quarter was 3.91, 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 -2.54. With this latest performance, AAOI shares gained by 12.24% in over the last four-week period, additionally plugging by 31.46% over the last 6 months – not to mention a rise of 648.16% 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 54.15, with the RSI for the last a single of trading hit 54.25, and the three-weeks RSI is set at 54.07 for Applied Optoelectronics Inc [AAOI]. The present Moving Average for the last 50 days of trading for this stock 19.33, while it was recorded at 20.62 for the last single week of trading, and 11.36 for the last 200 days.

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

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

With the latest financial reports released by the company, Applied Optoelectronics Inc posted -0.19/share EPS, while the average EPS was predicted by analysts to be reported at -0.3/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 36.70%. 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%.