Stefan J. Murry, Chief Financial Officer of Applied Optoelectronics, Inc. (NASDAQ:), executed a sale of 4,000 shares of common stock on January 16, 2025. The shares were sold at an average price of $31.7238 per share, totaling approximately $126,895. Following this transaction, Murry holds 212,129 shares directly. The sale comes amid significant stock momentum, with AAOI shares surging nearly 182% over the past six months, according to InvestingPro data.
The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, which Murry adopted on September 18, 2024. This plan allows insiders of publicly traded corporations to set up a trading plan for selling stocks they own, providing an affirmative defense against accusations of insider trading. The shares were sold in multiple transactions, with prices ranging from $31.30 to $32.29 per share. With the company’s next earnings report scheduled for February 20, 2025, investors can access comprehensive analysis and 12+ additional insights through InvestingPro‘s detailed research reports.
In other recent news, Applied Optoelectronics has experienced notable developments. The company reported a Q3 2024 revenue of $65.2 million, marking a 4% year-over-year increase and a substantial 51% rise from the previous quarter, despite a non-GAAP loss per share of $0.21 due to increased research and development costs. 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%.
Additionally, the company has entered into a construction contract with Chyi Ding Technologies Co., Ltd. through its subsidiary Prime World International Holdings Ltd. The contract, valued at 277 million New Taiwan Dollars (NTD), involves the construction of a cleanroom and additional mechanical, electrical, and renovation work at a new site in New Taipei City, signaling a significant expansion of its manufacturing capabilities.
In terms of analyst ratings, Rosenblatt Securities has increased its stock price target for Applied Optoelectronics to $44, maintaining a Buy rating based on the company’s future earnings potential. However, B.Riley downgraded its rating for the company’s stock from Neutral to Sell, citing concerns over a potential deceleration in the 400G market segment.
Lastly, Applied Optoelectronics has initiated a patent infringement lawsuit against Eoptolink Technology USA Inc., alleging the violation of multiple optical transceiver patents held by the company. The firm is seeking both monetary damages and a permanent injunction against Eoptolink to prevent further alleged infringement of its patents. These are the recent developments regarding Applied Optoelectronics.
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