William H. Yeh, a director at Applied Optoelectronics, Inc. (NASDAQ:AAOI), has increased his stake in the company through the recent purchase of shares. On March 18, 2024, Yeh acquired 8,000 shares of common stock at a weighted average price of $12.75, totaling an investment of $102,000.
This transaction was executed in multiple trades with prices ranging from $12.74 to $12.75 per share. Following this purchase, Yeh's total ownership in Applied Optoelectronics stands at 207,255 shares of common stock.
Applied Optoelectronics, headquartered in Sugar Land, Texas, operates within the semiconductor and related devices industry. The company's shares are traded under the ticker AAOI on the NASDAQ stock exchange.
Investors often monitor insider transactions such as these, as they can provide insights into the confidence that company executives and directors have in the firm's prospects. The details of the transactions, including the specific number of shares bought at each price, are available upon request from the SEC, the issuer, or a security holder of the issuer.
InvestingPro Insights
With a recent boost in insider confidence, as evidenced by William H. Yeh's acquisition of additional shares, Applied Optoelectronics (NASDAQ:AAOI) appears to be a company worth watching. According to InvestingPro data, the company has a market capitalization of $522.21 million and a notably high price volatility, with a one-month price total return of -39.18% and a six-month return of 34.65%. This aligns with the InvestingPro Tips indicating that the stock trades with high price volatility and has experienced significant price fluctuations over various periods.
Despite these swings, analysts are optimistic about the company's future, predicting sales growth in the current year and forecasting profitability. This is particularly noteworthy considering the company's revenue was $217.65 million over the last twelve months as of Q4 2023, with a slight decrease in revenue growth during the same period. The price-to-earnings (P/E) ratio currently stands at -7.73, reflecting challenges in recent profitability but potentially also indicating room for growth if the company meets analyst expectations.
InvestingPro Tips further suggest that Applied Optoelectronics' liquid assets exceed its short-term obligations, which may provide some financial stability for the company. However, it's important to note that the company does not pay a dividend, which could influence investment decisions for those seeking regular income.
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