Applied Optoelectronics Inc (NASDAQ: AAOI) has experienced a rise in its stock price by 9.51 compared to its previous closing price of 15.52. However, the company has seen a fall of -8.46% in its stock price over the last five trading days. seekingalpha.com reported 2025-05-14 that AAOI recently reported improved Q1-2025 financial results, with elevated revenue and higher profit margins. The company foresees increased demand for its products in the data center and CATV markets. AAOI has increased its US and Asian manufacturing capabilities to keep up with demand.
Is It Worth Investing in Applied Optoelectronics Inc (NASDAQ: AAOI) Right Now?
The 36-month beta value for AAOI is at 2.63. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 2 rating it as “overweight,” 1 as “hold,” and 0 as “sell.”
The public float for AAOI is 51.66M, and currently, shorts hold a 20.46% of that float. The average trading volume for AAOI on June 03, 2025 was 4.17M shares.
AAOI’s Market Performance
AAOI stock saw an increase of -8.46% in the past week, with a monthly gain of 13.57% and a quarterly increase of -6.34%. The volatility ratio for the week is 4.08%, and the volatility levels for the last 30 days are 7.07% for Applied Optoelectronics Inc (AAOI). The simple moving average for the past 20 days is -1.27% for AAOI’s stock, with a -20.19% simple moving average for the past 200 days.
Analysts’ Opinion of AAOI
Many brokerage firms have already submitted their reports for AAOI stocks, with B. Riley Securities repeating the rating for AAOI by listing it as a “Neutral.” The predicted price for AAOI in the upcoming period, according to B. Riley Securities is $13 based on the research report published on March 07, 2025 of the current year 2025.
B. Riley Securities, on the other hand, stated in their research note that they expect to see AAOI reach a price target of $14, previously predicting the price at $14. The rating they have provided for AAOI stocks is “Sell” according to the report published on December 10th, 2024.
Raymond James gave a rating of “Outperform” to AAOI, setting the target price at $17 in the report published on September 03rd of the previous year.
AAOI Trading at 12.47% from the 50-Day Moving Average
After a stumble in the market that brought AAOI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -61.82% of loss for the given period.
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Insider Trading
Reports are indicating that there were more than several insider trading activities at AAOI starting from Murry Stefan J., who sale 2,000 shares at the price of $19.35 back on May 16 ’25. After this action, Murry Stefan J. now owns 323,036 shares of Applied Optoelectronics Inc, valued at $38,697 using the latest closing price.
Murry Stefan J., the Officer of Applied Optoelectronics Inc, proposed sale 2,000 shares at $19.35 during a trade that took place back on May 16 ’25, which means that Murry Stefan J. is holding shares at $38,697 based on the most recent closing price.
Stock Fundamentals for AAOI
Current profitability levels for the company are sitting at:
- -0.19 for the present operating margin
- 0.27 for the gross margin
The net margin for Applied Optoelectronics Inc stands at -0.56. The total capital return value is set at -0.13. Equity return is now at value -68.45, with -34.70 for asset returns.
Based on Applied Optoelectronics Inc (AAOI), the company’s capital structure generated 0.35 points at debt to capital in total, while cash flow to debt ratio is standing at -0.56. The debt to equity ratio resting at 0.53. The interest coverage ratio of the stock is -13.81.
Currently, EBITDA for the company is -159.26 million with net debt to EBITDA at -0.74. When we switch over and look at the enterprise to sales, we see a ratio of 3.45. The receivables turnover for the company is 1.8for trailing twelve months and the total asset turnover is 0.48. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.88.
Conclusion
In conclusion, Applied Optoelectronics Inc (AAOI) has had a mixed performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
