Richard B. Black, a director at Applied Optoelectronics Inc. (NASDAQ:AAOI), recently sold 10,000 shares of the company’s common stock. The shares were sold at an average price of $27.524 each, totaling approximately $275,240. This transaction, conducted on November 15, 2024, was part of a pre-established Rule 10b5-1 trading plan. Following this sale, Black holds 177,813 shares indirectly through a trust. Additionally, another 8,162 shares are held in a separate trust for his spouse.
In other recent news, Applied Optoelectronics reported a rise in its Q3 2024 revenue, reaching $65.2 million, a 4% increase year-over-year, and a considerable 51% surge from the preceding quarter. The company attributed its non-GAAP loss per share of $0.21 to increased research and development expenses, primarily in the data center sector. Despite a year-over-year dip in data center revenues, a significant sequential increase was observed. Additionally, the CATV segment's revenue saw a boost due to high demand for 1.8 GHz amplifiers, with further growth anticipated as the industry transitions to DOCSIS 4.0 technology.
In the midst of these developments, Applied Optoelectronics projects its Q4 revenue to fall between $94 million and $104 million, with a non-GAAP gross margin expected to be between 27.5% and 29.5%. Operating expenses are anticipated to remain high, ranging from $28 million to $30 million. The company also forecasts a non-GAAP net income between a $1.9 million loss and a $1.7 million profit.
Applied Optoelectronics has secured three of the top five data center customers, indicating robust infrastructure growth. Moreover, the company has set a long-term gross margin target of 40%, driven by the growth of 800G and 1.6 terabit products. These recent developments underline the company's commitment to meeting the rising demand in both the data center and CATV sectors.
InvestingPro Insights
The recent insider sale by Richard B. Black at Applied Optoelectronics Inc. (NASDAQ:AAOI) comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, AAOI has delivered a strong return of 110.2% over the last year, with an even more impressive 223.67% return over the past three months. This surge in stock price aligns with an InvestingPro Tip indicating that the stock has experienced a large price uptick over the last six months.
Despite the positive price momentum, investors should note that AAOI operates with a moderate level of debt and is not currently profitable. The company's revenue for the last twelve months as of Q3 2023 stood at $209.55 million, with a gross profit margin of 26.09%. However, the operating income margin was negative at -32.91%, reflecting the company's profitability challenges.
An important InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year. This insight, combined with the stock's recent performance, may provide context for the director's decision to sell shares.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for AAOI, providing a deeper understanding of the company's financial health and market position.
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