Are Applied Optoelectronics Inc. (AAOI) stocks a prudent buy?

As of right now, Applied Optoelectronics Inc. [AAOI] is trading at $2.82, up 8.46%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The AAOI shares have gain 28.18% over the last week, with a monthly amount glided 50.00%, and seem to be holding up well over a long-time horizon.

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On 2, February 2023, Applied Optoelectronics Announces Date of Fourth Quarter and Full Year 2022 Financial Results Conference Call. In a post published today on Yahoo Finance, Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic access network products for the internet datacenter, cable broadband, telecom and fiber-to-the-home (FTTH) markets, today announced that it will release financial results for its fourth quarter and full year ended December 31, 2022, on Thursday, February 23, 2023.

From an analyst’s perspective:

Applied Optoelectronics Inc. [NASDAQ: AAOI] stock has seen the most recent analyst activity on February 25, 2022, when Craig Hallum downgraded its rating to a Sell and also revised its price target to $2.50 from $7. Previously, Needham downgraded its rating to Hold on March 02, 2021. On November 09, 2020, Needham reiterated its Buy rating and revised its price target to $9 on the stock. B. Riley Securities reiterated its Neutral rating and decreased its price target to $9 on November 06, 2020. Northland Capital upgraded its rating to a Market Perform but $10 remained the price target by the analyst firm on October 26, 2020. Craig Hallum upgraded its rating to Hold for this stock on August 07, 2020. In a note dated August 07, 2020, Needham reiterated an Buy rating on this stock and boosted its target price from $15 to $22.

Through the last year, Applied Optoelectronics Inc.’s stock price ranged from $1.48 to $4.56. Currently, Wall Street analysts expect the stock to reach $4.83 within the next 12 months. Applied Optoelectronics Inc. [NASDAQ: AAOI] shares were valued at $2.82 at the most recent close of the market. An investor can expect a potential return of 71.28% based on the average AAOI price forecast.

Analyzing the AAOI fundamentals

For Applied Optoelectronics Inc., (AAOI), the latest quarter sales were 56.69 billion, which represents an 6.40% increase. Gross Margin for this corporation currently stands at +17.59% with Operating Margin at -26.83%, Pretax Margin comes in at -25.60%, and Net Margin reading is -25.60%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 2.65 points at the first support level, and at 2.47 for the second support level. However, for the 1st resistance point, the stock is sitting at 2.94, and for the 2nd resistance point, it is at 3.05.

Applied Optoelectronics Inc. [AAOI] reported earnings per share of -$0.28 for its fiscal quarter that ended on 6/29/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of -$0.3/share, meaning a difference of $0.02 and a surprise factor of 6.70%. By comparison, the stated earnings for the previous quarter ended on 3/30/2022 were -$0.29 per share as compared to estimates of -$0.31 per share, a difference of $0.02 representing a surprise of 6.50%.

Ratios To Look Out For

It is important to note that Applied Optoelectronics Inc. [NASDAQ:AAOI] has a current ratio of 1.40. As well, the Quick Ratio is 0.93, while the Cash Ratio is 0.38. Considering the valuation of this stock, the price to sales ratio is 0.65, the price to book ratio is 0.55.

Transactions by insiders

Insider trading has also been a hot topic recently, with 1 insiders purchasing 44,443 shares and 8 selling 103,990 shares in the past 3 months. Recent insider trading involved Murry Stefan J., Chief Financial Officer, that happened on Jan 18 when 3100.0 shares were sold. Chief Financial Officer, Murry Stefan J. completed a deal on Jan 17 to sell 1300.0 shares. Meanwhile, Chief Financial Officer Murry Stefan J. sold 10651.0 shares on Dec 14.