Applied Optoelectronics Inc. (NASDAQ: AAOI) stock fell -4.39% on Wednesday to $2.18 against a previous-day closing price of $2.28. With 0.16 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.6 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $2.3800 whereas the lowest price it dropped to was $2.1700. The 52-week range on AAOI shows that it touched its highest point at $6.14 and its lowest point at $1.48 during that stretch. It currently has a 1-year price target of $4.83. Beta for the stock currently stands at 1.36.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AAOI was up-trending over the past week, with a rise of 1.40%, but this was down by -23.78% over a month. Three-month performance dropped to -21.01% while six-month performance fell -0.46%. The stock lost -63.18% in the past year, while it has lost -57.59% so far this year. A look at the trailing 12-month EPS for AAOI yields -2.20 with Next year EPS estimates of -0.78. For the next quarter, that number is -0.31. This implies an EPS growth rate of 24.70% for this year and 31.30% for next year. EPS is expected to grow by 13.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -25.70%.
Float and Shares Shorts:
At present, 27.84 million AAOI shares are outstanding with a float of 27.14 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.46 million, which was 12.40% higher than short shares on Sep 14, 2022. In addition to Dr. Chih-Hsiang Lin Ph.D. as the firm’s Founder, Chairman, Pres & CEO, Dr. Stefan J. Murry serves as its CFO & Chief Strategy Officer.
Through their ownership of 35.59% of AAOI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 21.01% of AAOI, in contrast to 13.10% held by mutual funds. Shares owned by individuals account for 12.39%. As the largest shareholder in AAOI with 5.01% of the stake, Columbia Management Investment Ad holds 1,395,773 shares worth 1,395,773. A second-largest stockholder of AAOI, The Vanguard Group, Inc., holds 1,195,195 shares, controlling over 4.29% of the firm’s shares. Kovack Advisors, Inc. is the third largest shareholder in AAOI, holding 950,901 shares or 3.41% stake. With a 3.07% stake in AAOI, the Columbia Small Cap Value Fund I is the largest stakeholder. A total of 855,757 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.97% of AAOI stock, is the second-largest Mutual Fund holder. It holds 828,961 shares valued at 2.28 million. Columbia Variable Portfolio-Small holds 1.72% of the stake in AAOI, owning 479,838 shares worth 1.32 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AAOI since 4 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AAOI analysts setting a high price target of $7.50 and a low target of $3.00, the average target price over the next 12 months is $4.83. Based on these targets, AAOI could surge 244.04% to reach the target high and rise by 37.61% to reach the target low. Reaching the average price target will result in a growth of 121.56% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AAOI will report FY 2022 earnings on 02/23/2023. Analysts have provided yearly estimates in a range of -$1.11 being high and -$1.14 being low. For AAOI, this leads to a yearly average estimate of -$1.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Applied Optoelectronics Inc. surprised analysts by $0.03 when it reported -$0.26 EPS against a consensus estimate of -$0.29. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.30 and the low estimate is -$0.32. The average estimate for the next quarter is thus -$0.31.
Summary of Insider Activity:
Insiders traded AAOI stock several times over the past three months with 0 Buys and 27 Sells. In these transactions, 0 shares were bought while 49,593 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 105 over the past year. The total number of shares bought during that period was 806,807 while 172,259 shares were sold.