Elizabeth G. Loboa, a director at Applied Optoelectronics, Inc. (NASDAQ:AAOI), recently sold 13,494 shares of the company's common stock. The transactions, executed on November 21, 2024, were completed at prices ranging from $36.29 to $36.81 per share, with a weighted average sale price of $36.54. The total value of the shares sold amounts to approximately $493,116. Following these transactions, Loboa retains ownership of 124,500 shares in the company.
In other recent news, Applied Optoelectronics has been involved in several significant developments. The company recently initiated a patent infringement lawsuit against Eoptolink Technology USA Inc., alleging violation of multiple optical transceiver patents. This legal action underscores the importance of patent rights within the fiber-optic network product industry.
On the financial front, Applied Optoelectronics reported a rise in Q3 2024 revenue to $65.2 million. Despite a 16% year-over-year decrease in data center revenue, the company observed a 90% sequential growth in the same sector, and a significant increase in the CATV segment's revenue due to high demand for 1.8 GHz amplifiers. The company's non-GAAP loss per share stood at $0.21, primarily due to increased research and development costs.
Looking ahead, 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%. The company also 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. These are among the recent developments investors should be aware of.
InvestingPro Insights
The recent stock sale by director Elizabeth G. Loboa comes at a time when Applied Optoelectronics, Inc. (NASDAQ:AAOI) is experiencing significant market momentum. According to InvestingPro data, AAOI has seen a remarkable 293.13% price return over the past three months, with a 101.36% surge in the last month alone. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 98.07% of that peak.
InvestingPro Tips highlight that AAOI's stock generally trades with high price volatility, which is evident in its recent price movements. The significant return over the last week and the strong performance over various time frames suggest a bullish sentiment among investors. However, it's worth noting that the RSI indicates the stock may be in overbought territory, potentially signaling a need for caution.
Despite the impressive stock performance, InvestingPro Tips also reveal that analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. This contrast between stock performance and profitability outlook underscores the importance of thorough analysis when considering investment decisions.
For investors seeking a more comprehensive understanding of AAOI's financial health and market position, InvestingPro offers 16 additional tips, providing a deeper dive into the company's prospects and potential risks.
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