Applied Optoelectronics, Inc. (NASDAQ:AAOI) Chief Financial Officer Stefan J. Murry recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Murry sold 5,000 shares of common stock on November 20, 2024, at prices ranging from $31.50 to $31.69 per share. The total value of these transactions amounted to $157,784, with a weighted average sale price of $31.5568 per share.
Following this sale, Murry retains direct ownership of 216,129 shares in the semiconductor company. The transactions were executed in multiple trades, and Murry has committed to providing detailed information about each transaction upon request.
In other recent news, Applied Optoelectronics, a key player in the fiber-optic network products sector, has initiated a patent infringement lawsuit against Eoptolink Technology USA Inc. The company alleges that Eoptolink violated several of its optical transceiver patents. This legal action could have implications for both companies and the broader market where these technologies are crucial.
On the earnings front, Applied Optoelectronics reported a noteworthy rise in its Q3 2024 revenue, recording $65.2 million, a 4% increase year-over-year, and a substantial 51% surge from the previous quarter. Despite a 16% year-over-year decrease in data center revenue, the company reported a 90% sequential growth in the same sector. The CATV segment's revenue also experienced a significant increase due to high demand for 1.8 GHz amplifiers.
The company's non-GAAP loss per share stood at $0.21, attributed to increased research and development costs, primarily in the data center sector. However, analysts from Applied Optoelectronics project Q4 revenue to be between $94 million and $104 million, with a non-GAAP gross margin expected to be between 27.5% and 29.5%. Among the recent developments, Applied Optoelectronics secured three out of the top five data center customers and expects margins from the cable TV segment to surpass those from data centers soon.
InvestingPro Insights
Applied Optoelectronics, Inc. (NASDAQ:AAOI) has been experiencing significant market momentum recently, as evidenced by the company's strong stock performance. According to InvestingPro data, AAOI has seen a remarkable 293.13% price total return over the past three months, and a 168.74% return over the last year. This surge in stock price aligns with the timing of CFO Stefan J. Murry's recent stock sale.
The company's current market capitalization stands at $1.7 billion, reflecting investor optimism despite some challenging financial metrics. InvestingPro Tips highlight that AAOI is not profitable over the last twelve months and analysts do not anticipate the company will be profitable this year. This context adds significance to Murry's decision to sell a portion of his holdings.
It's worth noting that AAOI is trading near its 52-week high, with the stock price at 98.07% of its peak. This could explain the timing of the insider sale, as executives often take advantage of high stock prices to liquidate some of their holdings. Additionally, an InvestingPro Tip indicates that the stock's RSI suggests it is in overbought territory, which may signal a potential for price correction.
Investors should be aware that AAOI operates with a moderate level of debt and is trading at a high revenue valuation multiple. These factors, combined with the stock's high volatility as noted in another InvestingPro Tip, suggest that careful consideration is warranted when evaluating AAOI's investment potential.
For a more comprehensive analysis, InvestingPro offers 16 additional tips for AAOI, providing deeper insights into the company's financial health and market position.
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