Value Hunters: Look To Applied Optoelectronics Inc. (NASDAQ: AAOI)


The Vanguard Group, Inc. recently announced the acquisition of new stake in Applied Optoelectronics Inc. (NASDAQ:AAOI). The institutional investor has increased its shareholding in the Technology company by 4.63% to 1.38 million shares with purchase of 61275.0 shares. This fresh investment now brings its stake to 6.81% valued currently at $15.05 million. In addition, Morgan Stanley & Co. LLC raised its holdings by 61000.0 to 0.88 million shares. And SSgA Funds Management, Inc. has lifted its position by 9.41% or 50329.0 shares – to 0.58 million shares.

With over 0.86 million Applied Optoelectronics Inc. (AAOI) shares trading Monday and a closing price of $12.02 on the day, the dollar volume was approximately $10.36 million. The shares have shown a positive weekly performance of 11.25% and its price on 07/20/20 gained nearly 6.90%. Currently, there are 20.21M common shares owned by the public and among those 19.06M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for AAOI have a consensus price objective of $10.14. The analysts have set the share’s price value over the next 12 months at a high of $12.00 and a low of $7.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Applied Optoelectronics Inc. stock is 3.20 for the next 12 months. The average price target is -16.36% below its last price level and a downside to the estimated low will see the stock lose -60.27% over that period. But an upside of -0.17% will see the stock hit the forecast high price target while mean target price for the stock is $10.00.

Insiders at the company have transacted a total of 112 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 13 of these insider trades were purchases, accounting for 500,874 shares. Insider sales of the common stock occurred on 99 occasions, with total insider shares sold totaling 161,503 shares.

The top 3 mutual fund holders in Applied Optoelectronics Inc. are iShares Core S&P Small Cap ETF, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. iShares Core S&P Small Cap ETF owns 1.18 million shares of the company’s stock, all valued at over $12.84 million. Vanguard Total Stock Market Index sold -0.19 million shares to see its total holdings shrink to 0.62 million shares valued at over $6.75 million and representing 3.05% of the shares outstanding. iShares Russell 2000 ETF sold 10578.0 shares to bring its total holdings to over 0.42 million shares at a value of $4.53 million. iShares Russell 2000 ETF now owns shares totaling to 2.05% of the shares outstanding.

Shares of Applied Optoelectronics Inc. (NASDAQ: AAOI) opened at $11.22, down -$0.02 from a prior closing price of $11.24. However, the script later closed the day at $12.02, up 6.90%. The company’s stock has a 5-day price change of 11.25% and 43.55% over the past three months. AAOI shares are trading 1.14% year to date (YTD), with the 12-month market performance up to 24.90% higher. It has a 12-month low price of $5.00 and touched a high of $15.98 over the same period. Currently, 0.86 million shares have been traded, compared to an average intraday trading volume of 748.56K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 13.94%, 22.94%, and 17.96% respectively.

Institutional ownership of Applied Optoelectronics Inc. (NASDAQ: AAOI) shares accounts for 60.30% of the company’s 20.21M shares outstanding. Mutual fund holders own 27.87%, while other institutional holders and individual stakeholders account for 31.08% and 13.40% respectively.

It has a market capitalization of $231.89M and a beta (3y monthly) value of 1.95. The earnings-per-share (ttm) stands at -$3.60. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.23% over the week and 7.00% over the month.

Analysts forecast that Applied Optoelectronics Inc. (AAOI) will achieve an EPS of -$0.25 for the current quarter, -$0.2 for the next quarter and -$0.24 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.29 while analysts give the company a high EPS estimate of -$0.21. Comparatively, EPS for the current quarter was -$0.26 a year ago. Earnings per share for the fiscal year are expected to decrease by -18.60%, and 76.50% over the next financial year. EPS should grow at an annualized rate of 13.00% over the next five years, compared to -68.80% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Applied Optoelectronics Inc. (AAOI) as a “Hold” at a consensus score of 3.20. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 5 of the 9 advise that investors “hold,” and 3 rated it as a “Sell.”

Looking at the support for the AAOI, a number of firms have released research notes about the stock. Rosenblatt stated their Neutral rating for the stock in a research note on May 08, 2020, with the firm’s price target at $11.50-$10. Rosenblatt coverage for the Applied Optoelectronics Inc. (AAOI) stock in a research note released on November 05, 2019 offered a Buy rating with a price target of $13. JP Morgan was of a view on October 22, 2019 that the stock is Underweight, while JP Morgan gave the stock Neutral rating on July 29, 2019, issuing a price target of $11. Rosenblatt on their part issued Neutral rating on June 27, 2019.


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