Applied Optoelectronics, Inc. (AAOI) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of Applied Optoelectronics, Inc. (AAOI) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 2 reasons to buy and 4 reasons to sell AAOI stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about AAOI stock:

  • Is AAOI a buy or a sell?
  • Should I sell or hold AAOI stock today?
  • Is AAOI a good buy / investment?
  • What are AAOI analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy AAOI stock:

1. AAOI stock price ($12.37) is close to the 52-week low ($12.03). Perhaps now is a good time to buy? See AAOI price chart.

2. AAOI Price/Book ratio is 0.76, and it’s low compared to its industry peers’ P/B ratios. See AAOI forward Price/Book ratio chart.

Now that you understand the bull case, let’s look at the reasons to sell AAOI stock (i.e., the bear case):

1. AAOI quarterly revenue growth was -27.30%, lower than the industry and sector average revenue growth (5.81% and 5.21%, respectively). See AAOI revenue growth chart.

2. AAOI profitability is declining. The YoY profit margin change was -20.14pp. See AAOI profitability chart.

3. AAOI short share of float is 50.49%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AAOI short share of float chart.

4. AAOI short interest (days to cover the shorts) ratio is 5.06. The stock garners more short interest than the average industry, sector or S&P 500 stock. See AAOI short interest ratio chart.

Now let's look at the key statistics for AAOI:

Metrics AAOI
Price $12.41
Average Price Target / Upside $12.93 / 4.19%
Average Analyst Rating Hold
Industry Semiconductors
Sector Technology
Number of Employees 2,956
Market Cap $250.32M
Forward P/E Ratio 19.08
Price/Book Ratio 0.94
PEG -1.76
Revenue (TTM) $267.46M
YoY Quarterly Revenue Growth -27.3%
Profit Margin -0.8%

What are your thoughts on AAOI?

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