Richard B. Black, a director at Applied Optoelectronics, Inc. (NASDAQ:AAOI), recently sold shares of the company in a transaction valued at $303,429. The transaction, dated November 26, 2024, involved the sale of 8,162 shares at a weighted average price of $37.1759 per share. These shares were sold by The Heather B Black Revocable Trust, with the actual sale prices ranging from $37.14 to $37.27 per share. The stock has since climbed to $41.22, showing significant momentum with a 244% surge over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with the RSI indicating overbought conditions.
Following this transaction, Richard B. Black holds 177,813 shares of the company indirectly, owned by trust. This sale reflects a strategic financial decision by Black, and investors might keep an eye on such insider activities for further insights into the company's stock movements. With a market capitalization of $1.87 billion and high price volatility, tracking insider moves becomes crucial. InvestingPro subscribers can access 15+ additional expert insights and a comprehensive Pro Research Report for deeper analysis of AAOI's insider trading patterns and valuation metrics.
In other recent news, Applied Optoelectronics has initiated a patent infringement lawsuit against Eoptolink Technology USA Inc., alleging the violation of multiple optical transceiver patents. The company seeks both damages and a permanent injunction against Eoptolink. In financial developments, Applied Optoelectronics reported a significant rise in its Q3 2024 revenue, reaching $65.2 million, a year-over-year increase of 4% and a substantial 51% surge from the previous quarter.
Despite a 16% year-over-year decrease in data center revenue, the company reported a 90% sequential growth in the same sector, along with a significant increase in the CATV segment's revenue due to high demand for 1.8 GHz amplifiers. The non-GAAP loss per share stood at $0.21, attributed to increased research and development costs, primarily in the data center sector.
Looking forward, 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 has 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 recent developments underscore the ongoing importance of patent rights within the competitive fiber-optic network product industry and the potential implications for both companies involved.
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