Stefan J. Murry, Chief Financial Officer of Applied Optoelectronics, Inc. (NASDAQ:), completed 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, for a total of approximately $126,895. . Following this transaction, Murry directly holds 212,129 shares. The sale comes amid significant stock market momentum, with AAOI shares surging nearly 182% over the past six months, according to InvestingPro data.
The sale was completed pursuant to a pre-established trading plan under Rule 10b5-1, which Murry adopted on September 18, 2024. This plan allows insiders of publicly traded companies to establish a trading plan to sell the shares they own, thus providing an affirmative defense against charges of insider trading. The shares were sold in several transactions, at 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 over 12 additional insights with InvestingPro’s in-depth research reports.
Furthermore, Applied Optoelectronics has experienced notable developments. The company reported third-quarter 2024 revenue of $65.2 million, an increase of 4% year-over-year and a substantial increase of 51% from the previous quarter, despite a non-GAAP loss per share of $0.21 due to increased research and development costs. Applied Optoelectronics analysts project fourth-quarter revenue in the range of $94 million to $104 million, with non-GAAP gross margin expected between 27.5% and 29.5%.
In addition, 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 clean room and additional facilities. mechanical, electrical and renovation works at a new site in New Taipei City, signaling a significant expansion of its manufacturing capabilities.
In terms of analyst ratings, Rosenblatt Securities increased their stock price target for Applied Optoelectronics to $44, maintaining a Buy rating based on the company’s future earnings potential. However, B.Riley downgraded his rating for the company’s shares from Neutral to Sell, citing concerns about a potential deceleration in the 400G market segment.
Finally, Applied Optoelectronics has filed a patent infringement lawsuit against Eoptolink Technology USA Inc., alleging infringement of several optical transceiver patents held by the company. The company is seeking both damages and a permanent injunction against Eoptolink to prevent further alleged violations of its patents. These are recent developments regarding applied optoelectronics.
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