Is Now The Right Time To Bet On Applied Optoelectronics, Inc. (AAOI)?

Applied Optoelectronics, Inc. (AAOI) shares saw a recent bid of $62.88 and 2.98M shares have exchanged hands in the recent trading session, yielding a -2.83% decline over the past week. The stock price increased 1.04% or $-0.65 versus $62.23 at the end of the prior session. This change led market cap to move at $1.18B, putting the price -16.81% below the 52-week high and 593.27% above the 52-week low. The company’s stock has a normal trading capacity of 3.24M shares while the relative volume is 0.92.

 

To stay one step ahead we extended our research by comparing different price targets. The stock notched a 12-month high of $73.38 while $100.00 target is by far the most aggressive out of analysts who are currently evaluating the company, $26.62 higher than the next highest 52-week price estimate. The lowest 12-month price target for the shares is $25.00, which would be decrease of about -60% of its current value. The mean target of $85.00 should be compared with the price when the stock was languishing around $9.07 a share. And it remains to be seen which target price AAOI can achieve without sacrificing much as the company is holding a 519.51% gain for the past twelve months.

 

By historical standards, Applied Optoelectronics, Inc. remains a cheap stock. The company’s current price-earnings ratio amounts to 22.36 times earnings, above the average P/E ratio of 10.51 times earnings. For now, Applied Optoelectronics, Inc. is the toast of Wall Street as its ABR stands at 1.90 with 2 out of 8 analysts rating the stock a buy. Over the short term, some market observers may have noticed that Applied Optoelectronics, Inc. has a 45.88% short float with 15 days to cover. It becomes significant when you consider how many shares are shorted versus the average daily volume, means how many days to cover those short shares at that volume. Applied Optoelectronics, Inc. has far performed well this year, with the share price up 168.26% since January. Over the past 2 quarters, the stock is up 164.54%, compared with a gain of nearly 23.85% for 3 months and about 2.44% for the past 30 days.

 

Last time, the company shocked Wall Street by reporting EPS of $1.10, smashing the consensus of $0.98 per share. Revenue for the quarter also killed consensus, coming in at $96.22M, compared to the consensus of 94.96M. Nonetheless, from here on out, earnings per share forecasts for the current quarter are $1.14. The company is expected to report EPS as high as $1.20 and as low as $1.09 per share. Similarly, full-year EPS forecasts have ranged between $4.25 and $5.21. The mean EPS estimate is $4.71. On the other side, sales forecasts for the current quarter are $110.25M. The stock is expected to report revenue as high as $112.6M and as low as $109M per share. Similarly, full-year sales forecasts have ranged between $436.2M and $458.8M. The mean revenue estimate is $449.06M.

 

Over the last 5 years, Applied Optoelectronics, Inc. has averaged a 43.90% YoY EPS growth rate and a 40.40% revenue growth rate. Analysts are expecting EPS growth rates to be at 170.10% this quarter and EPS estimate for next year reflect 10.53% growth rate.

 

Sell-side analysts also have something to say about this company. BWS Financial analysts stated on 16/06/2017 that they launched coverage on this stock with Sell rating. Needham analysts stated on 22/05/2017 that they launched coverage on this stock with Strong Buy rating. Northland Capital analysts stated on 06/08/2015 that they maintained their Outperform rating. ROTH Capital analysts stated on 14/07/2015 that they maintained their Buy rating.

 

 

Is Now The Right Time To Bet On Applied Optoelectronics, Inc. (AAOI)? was last modified: June 19th, 2017 by Tiller Blare
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