Applied Optoelectronics, Inc. (NASDAQ:AAOI) Director Lin Che-Wei has acquired a significant number of shares in the company, according to a recent filing with the Securities and Exchange Commission. On March 18, 2024, Lin purchased 31,370 shares of common stock at a weighted average price of $12.6963, amounting to a total investment of approximately $398,282.
The transactions were executed in multiple tranches throughout the day, with prices ranging from $12.61 to $12.85 per share. Following these purchases, Lin's total holdings in Applied Optoelectronics have increased to 220,133 shares of common stock.
Investors often keep a close eye on insider transactions like these, as they can provide valuable insights into the confidence that company executives and directors have in the business's prospects. The acquisition of stock by a director can be seen as a positive indicator of the company's potential future performance.
Applied Optoelectronics, based in Sugar Land, Texas, specializes in the design, manufacturing, and sale of various fiber-optic networking products, primarily for the internet data center, cable television (CATV), and fiber-to-the-home (FTTH) markets.
The company's shares are traded on the NASDAQ under the ticker symbol AAOI. Interested parties can access more details about the transactions by referring to the full SEC Form 4 filing.
InvestingPro Insights
Following the news of Director Lin Che-Wei's significant share purchase in Applied Optoelectronics, Inc. (NASDAQ:AAOI), investors may be seeking additional context on the company's financial health and stock performance. According to InvestingPro data, the company's market capitalization stands at $498.41 million, with a trailing twelve-month revenue of $217.65 million. Despite a negative revenue growth of -2.32% over the last twelve months as of Q4 2023, the company maintains a gross profit margin of 27.07%, indicating a stable ability to manage its cost of goods sold relative to sales.
However, the company's price-to-earnings (P/E) ratio is currently negative at -7.51, reflecting the market's concerns about its profitability. This is further emphasized by an adjusted P/E ratio of -8.99 for the same period, suggesting that investors are cautious about future earnings. Additionally, the stock has experienced significant price volatility, with a 1-month price total return of -40.49% and a 3-month return of -43.56%, which aligns with one of the InvestingPro Tips highlighting its high price volatility.
On a more positive note, the stock has seen a 1-year price total return of 438.14%, showcasing a remarkable rebound over a longer timeframe. This could be a reflection of the market's optimism about the company's future, potentially supported by another InvestingPro Tip that analysts predict the company will be profitable this year. For investors looking for in-depth analysis and additional insights, there are 11 more InvestingPro Tips available for Applied Optoelectronics, which can be found at https://www.investing.com/pro/AAOI. Don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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