Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) recorded 11.97% gain during trading session on November 8th, 2018. The script traded as low as $17.95 and last traded at $21.70. 4.03 million shares changed exchanged hands during trading, a drop of -207.63% from the 30-day average session volume of 1.31M shares. The firm had previously closed at $19.38. The company has $19.36M outstanding shares, a price-to-earnings ratio of 15.00, price-to-earnings-growth ratio of 1.31 and a beta of 2.54. The company has a RSI of 45.68, ATR of 1.76 and a volatility of 11.86% this week. AAOI has a 52 week low price of $18.16 and a 52 week high price of $50.30.

Investors have identified the tech company Applied Optoelectronics, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 420.11M, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Applied Optoelectronics, Inc. (AAOI) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For AAOI, the company has in raw cash 64.1 million on their books with 53.71 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 215.17 million total, with 0 as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.

AAOI were able to record 0 as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 0. In cash movements, the company had a total of 0 as operating cash flow.

Potential earnings growth for Applied Optoelectronics, Inc. (AAOI)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Applied Optoelectronics, Inc. recorded a total of 56.39 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -0.58% coming in sequential stages and their sales for the third quarter reducing by -0.56%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 38.85 million trying to sell their products during the last quarter, with the result yielding a gross income of 17.54 million. This allows shareholders to hold on to 19.36M with the revenue now reading -190 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.38 cents a share).

Is the stock of AAOI attractive?

Having a look at the company’s valuation, the company is expected to record 2.30 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on AAOI sounds very interesting.

In related news, Chief Financial Officer Murry Stefan J. sold 3,000 shares of the company’s stock in a transaction that recorded on June 7th, 2018. The sale was performed at an average price of 44.25, for a total value of 132,760. As the sale deal closes, the General Counsel and Secretary Murry Stefan J. now sold 1,500 shares of the company’s stock, valued at 68,760. Also, Director BLACK RICHARD B sold 1,000 shares of the company’s stock in a deal that was recorded on January 11th, 2018. The shares were sold at an average price of 35.37 per share, with a total market value of 34,478. Following this completion of acquisition, the Director now holds 1,000 shares of the company’s stock, valued at 40,430. In the last 6 months, insiders have changed their ownership in shares of company stock by 6.90%.

1 out of 10 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Applied Optoelectronics, Inc. stock. 1 analysts has assigned a Sell rating on the AAOI stock. The 12-month mean consensus price target for the company’s shares has been set at $29.19.