Applied Optoelectronics (AAOI): What's Happening With The Stock?

3:05 pm ET, 12 Apr 2018

The Applied Optoelectronics (NASDAQ: AAOI) stock is barely moving in today's trading.  However, year-to-date, the stock declined 25% (visit Finstead and type “AAOI YTD return” to get the latest info). 

Applied Optoelectronics is a US-based company providing fiber-optic networking solutions for cable television, fiber-to-the-home, and data center markets.  Its products range from components and modules to complete turn-key equipment.

The company's market capitalization is US$568 M (visit Finstead and type “AAOI market cap” to get the latest info).  It generates 80% of its revenue from data center operations. Facebook, Amazon, and Microsoft are the 3 major customers. 

Facebook and Amazon are more inclined to buy AAOI's high-speed optical transceivers, rather than from those from Zhongji Innolight, a China-based rival. Zhongji's quality issues and AAOI's aggressive pricing tactics are the reasons for AAOI's success. 

Yesterday morning, the stock surged to an intraday day of $28, a 25% spike from its 52-week low. But the stock was still trading 72% below its 52-week high.  

So what is the price forecast for AAOI?  Is the stock worth buying now? 

Per Finstead Research, Applied Optoelectronics shares have the average price target of $36.  The stock has an upside of about 22%.


The Applied Optoelectronics stock has a fairly low valuation compared to the industry peers. It is only ahead of Sequans Communications (SQNS), Resonant (RESN) and ParkerVision (PRKR) based on the forward P/E ratio. 

Applied Optoelectronics shares have a high short share of float compared to the industry and sector averages, indicating potential high volatility in the upcoming days.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

Applied Optoelectronics, Inc. (AAOI) Stock Guide

Updated at: 12:31 am ET, 12 Jul 2020

Before we start: if you're looking for AAOI stock price, you can quickly find it out by visiting Finny and typing "AAOI quote". If you're looking for a quick scoop on AAOI stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AAOI". You'll get all this info in one place. Or you can just type "AAOI news" to get the latest stock news.

Looking to buy or sell Applied Optoelectronics, Inc. (AAOI)? Interested in getting the full scoop on AAOI, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AAOI stock guide, we'll address key questions about AAOI, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AAOI earnings?
2. When is AAOI earnings date?
3. What is AAOI stock forecast (i.e., prediction)?
4. AAOI buy or sell? What is AAOI Finny Score?
5. What are the reasons to buy AAOI? Why should I buy AAOI stock?
6. What are the reasons to sell AAOI? Why should I sell AAOI stock?
7. What are AAOI key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AAOI earnings?

AAOI trailing 12-month earnings per share (EPS) is -$3.61.

2. When is AAOI earnings date?

AAOI earnings date is May 07, 2020.

Analyst Predictions

3. What is AAOI stock forecast (i.e., prediction)?

Based on AAOI analyst price targets, AAOI stock forecast is $8.59 (for a year from now). That means the average analyst price target for AAOI stock is $8.59. The prediction is based on 9 analyst estimates.

The low price target for AAOI is $6.00, while the high price target is $11.50.

AAOI analyst rating is Buy.

Analysis

4. AAOI buy or sell? What is AAOI Finny Score?

#{finnyScore:38}Our quantitative analysis shows 3 reasons to buy and 5 reasons to sell AAOI, resulting in Finny Score of 38.

5. What are the reasons to buy AAOI? Why should I buy AAOI stock?

Here are the reasons to buy AAOI stock:

6. What are the reasons to sell AAOI? Why should I sell AAOI stock?

Let's look at the reasons to sell AAOI stock (i.e., the bear case):

  • AAOI quarterly revenue growth was -23.20%, lower than the industry and sector average revenue growth (1.39% and 1.51%, respectively). See AAOI revenue growth chart.
  • AAOI profitability is declining. The YoY profit margin change was -20.14 percentage points. See AAOI profitability chart.
  • AAOI average analyst price target ($8.59) is below its current price ($11.51). See AAOI price target chart.
  • AAOI short share of float is 50.87%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AAOI short share of float chart.
  • AAOI short interest (days to cover the shorts) ratio is 11.48. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AAOI short interest ratio chart.

Key Stats

7. What are AAOI key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AAOI:

Metrics AAOI
Price $16.07
Average Price Target / Upside $8.59 / -46.56%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Semiconductors
Sector Technology
Number of Employees 2,956
Market Cap $172.89M
Forward P/E Ratio -121.43
Price/Book Ratio 0.97
Revenue (TTM) $178.62M
YoY Quarterly Revenue Growth -23.20%
Profit Margin -40.52%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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