’Reddit is built for this moment’ - Stock soars on crushed earnings
Stefan J. Murry, the Chief Financial Officer of Applied Optoelectronics, Inc. (NASDAQ:AAOI), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Murry sold 2,000 shares of common stock on March 17, 2025. The shares were sold at an average price of $23.0613, totaling approximately $46,122. The sale comes as AAOI’s stock shows significant volatility, with the share price currently at $21.12, down from its 52-week high of $44.50 but substantially above its low of $6.70. InvestingPro analysis indicates the stock is currently overvalued, with analyst price targets ranging from $13 to $70.
The transaction was conducted under a Rule 10b5-1 trading plan, which Murry adopted on September 18, 2024. These plans allow insiders of publicly traded companies to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest. Following this sale, Murry retains direct ownership of 196,581 shares of Applied Optoelectronics. For comprehensive insider trading analysis and more insights, InvestingPro subscribers can access detailed reports covering over 1,400 US stocks, including AAOI’s complete insider transaction history and financial health metrics.
In other recent news, Applied Optoelectronics reported its fourth-quarter 2024 financial results, aligning with analyst expectations. The company posted a non-GAAP loss per share of $0.02 and revenue of $100.3 million, marking a 66% year-over-year increase in revenue. In a significant development, Applied Optoelectronics announced a warrant agreement with Amazon (NASDAQ:AMZN), allowing the tech giant to acquire up to 7.95 million shares, potentially leading to $4 billion in discretionary purchases. Analysts at Rosenblatt maintained a Buy rating, emphasizing the strategic importance of this deal for the company’s position in the AI transceiver market.
Additionally, B.Riley upgraded Applied Optoelectronics from Sell to Neutral, setting a price target of $13.00, reflecting a shift in sentiment despite ongoing concerns about market demand and product qualifications. The company also initiated a $100 million Equity Distribution Agreement with Raymond (NSE:RYMD) James, aiming to bolster its financial resources through at-the-market offerings. Raymond James, while adjusting its price target to $31.00, retained an Outperform rating, citing mixed financial results but highlighting potential in emerging markets such as 800G and 1.6T.
Applied Optoelectronics’ strategic investments continue, with plans for significant capital expansion to support high-demand transceivers, including a $120 million to $150 million capital expenditure plan for 2025. This expansion is crucial as the company anticipates ramping demand in the data center and CATV markets, with major industry players like Microsoft (NASDAQ:MSFT), Amazon, and Oracle (NYSE:ORCL) as key customers. These developments underscore the company’s efforts to strengthen its market position and address future demand in the competitive tech landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.