Hung-Lun (Fred) Chang, Senior Vice President and North America General Manager at Applied Optoelectronics, Inc. (NASDAQ:AAOI), recently sold 20,323 shares of the company. The transactions, which took place on November 20, were executed at prices ranging from $30.00 to $30.96 per share, with a weighted average sale price of $30.3514. The total value of the shares sold amounted to approximately $616,831. Following this sale, Chang retains ownership of 195,572 shares in the company.
In other recent news, Applied Optoelectronics, a prominent supplier of fiber-optic network products, has reported an increase in its Q3 2024 revenue, reaching $65.2 million. This represents a 4% increase year-over-year and a substantial 51% surge from the previous quarter. 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. Despite a 16% year-over-year decrease in data center revenue, the company reported a 90% sequential growth in the same sector.
In addition to its financial performance, Applied Optoelectronics has recently initiated a patent infringement lawsuit against Eoptolink Technology USA Inc. The legal action asserts that Eoptolink has violated multiple optical transceiver patents held by Applied Optoelectronics. The company is seeking both monetary damages and a permanent injunction against Eoptolink to prevent further alleged infringement of its patents.
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%. These recent developments highlight the ongoing activities within the company that could be of interest to investors.
InvestingPro Insights
The recent insider sale by Hung-Lun (Fred) Chang 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, and the stock is currently trading near its 52-week high, with the price at 98.07% of its peak.
This strong performance is reflected in two key InvestingPro Tips: the stock has shown a "Significant return over the last week" and a "Strong return over the last month." These tips align with the timing of Chang's sale, suggesting he may be capitalizing on the stock's recent gains.
However, investors should note that AAOI operates with some financial challenges. The company is not profitable over the last twelve months, with a negative operating income margin of -32.91% for the same period. Additionally, an InvestingPro Tip indicates that analysts do not anticipate the company will be profitable this year.
Despite these challenges, AAOI's market capitalization stands at $1.7 billion, reflecting investor optimism about its future prospects. The stock's high volatility and strong returns across various timeframes suggest that market sentiment remains bullish, which could explain the insider's decision to sell at current price levels.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on AAOI, providing a deeper understanding of the company's financial health and market position.
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