Is Applied Opt Stock a Good Investment?
Applied Opt Investment Advice | AAOI |
- Examine Applied Opt's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Applied Opt's leadership team and their track record. Good management can help Applied Opt navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Communications Equipment space and any emerging trends that could impact Applied Opt's business and its evolving consumer preferences.
- Compare Applied Opt's performance and market position to its competitors. Analyze how Applied Opt is positioned in terms of product offerings, innovation, and market share.
- Check if Applied Opt pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Applied Opt's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Applied Opt stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Applied Opt is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Solid | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Applied Opt Stock
Researching Applied Opt's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 68.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.51. Applied Opt recorded a loss per share of 2.04. The entity had not issued any dividends in recent years.
To determine if Applied Opt is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Applied Opt's research are outlined below:
| Applied Opt is way too risky over 90 days horizon | |
| Applied Opt appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 217.65 M. Net Loss for the year was (56.05 M) with profit before overhead, payroll, taxes, and interest of 33.63 M. | |
| Applied Opt currently holds about 26.27 M in cash with (7.93 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.92. | |
| Roughly 68.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: Applied Optoelectronics Filed Patent Infringement Lawsuit Against Eoptolink Technology USA Inc. |
Applied Opt uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Applied Opt. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Applied Opt's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 22nd of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 22nd of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Applied Opt's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Applied Opt's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2016-05-09 | 2016-03-31 | -0.05 | -0.04 | 0.01 | 20 | ||
2020-11-05 | 2020-09-30 | -0.08 | -0.06 | 0.02 | 25 | ||
2019-02-21 | 2018-12-31 | -0.04 | -0.02 | 0.02 | 50 | ||
2022-11-03 | 2022-09-30 | -0.29 | -0.26 | 0.03 | 10 | ||
2021-08-05 | 2021-06-30 | -0.18 | -0.15 | 0.03 | 16 | ||
2021-02-25 | 2020-12-31 | -0.23 | -0.2 | 0.03 | 13 | ||
2014-11-10 | 2014-09-30 | 0.23 | 0.2 | -0.03 | 13 | ||
2014-02-27 | 2013-12-31 | 0.05 | 0.02 | -0.03 | 60 |
Know Applied Opt's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Applied Opt is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Applied Opt backward and forwards among themselves. Applied Opt's institutional investor refers to the entity that pools money to purchase Applied Opt's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Portolan Capital Management, Llc | 2024-06-30 | 841.1 K | Centerbook Partners Lp | 2024-06-30 | 706.6 K | State Street Corp | 2024-06-30 | 695 K | Marshall Wace Asset Management Ltd | 2024-06-30 | 541.8 K | Emerald Advisers, Llc | 2024-09-30 | 526.5 K | Dimensional Fund Advisors, Inc. | 2024-09-30 | 507.6 K | Kennedy Capital Management Inc | 2024-06-30 | 497.3 K | Hampton Road Capital Management Lp | 2024-09-30 | 452.2 K | Sora Investors Llc | 2024-06-30 | 450 K | Blackrock Inc | 2024-06-30 | 3 M | Vanguard Group Inc | 2024-09-30 | 2.2 M |
Applied Opt's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.6 B.Market Cap |
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Applied Opt's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.15) | (0.14) | |
| Return On Capital Employed | (0.14) | (0.13) | |
| Return On Assets | (0.14) | (0.14) | |
| Return On Equity | (0.26) | (0.25) |
Determining Applied Opt's profitability involves analyzing its financial statements and using various financial metrics to determine if Applied Opt is a good buy. For example, gross profit margin measures Applied Opt's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Applied Opt's profitability and make more informed investment decisions.
Applied Opt's Earnings Breakdown by Geography
Evaluate Applied Opt's management efficiency
Applied Opt has return on total asset (ROA) of (0.11) % which means that it has lost $0.11 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.4144) %, meaning that it created substantial loss on money invested by shareholders. Applied Opt's management efficiency ratios could be used to measure how well Applied Opt manages its routine affairs as well as how well it operates its assets and liabilities. The Applied Opt's current Return On Tangible Assets is estimated to increase to -0.14. The Applied Opt's current Return On Capital Employed is estimated to increase to -0.13. As of now, Applied Opt's Fixed Asset Turnover is decreasing as compared to previous years. The Applied Opt's current Asset Turnover is estimated to increase to 0.74, while Total Assets are projected to decrease to under 349.4 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 6.73 | 7.84 | |
| Tangible Book Value Per Share | 6.46 | 7.59 | |
| Enterprise Value Over EBITDA | (26.46) | (25.14) | |
| Price Book Value Ratio | 2.87 | 1.91 | |
| Enterprise Value Multiple | (26.46) | (25.14) | |
| Price Fair Value | 2.87 | 1.91 | |
| Enterprise Value | 692.9 M | 727.5 M |
The management team at Applied Opt has a track record of steering the company towards sustained growth. Evaluating their strategies helps in understanding the stock's long-term potential.
Beta 1.961 |
Basic technical analysis of Applied Stock
As of the 22nd of November, Applied Opt shows the Risk Adjusted Performance of 0.2195, downside deviation of 4.42, and Mean Deviation of 5.64. Applied Opt technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Applied Opt's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Applied Opt insiders, such as employees or executives, is commonly permitted as long as it does not rely on Applied Opt's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Applied Opt insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Applied Opt's Outstanding Corporate Bonds
Applied Opt issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Applied Opt uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Applied bonds can be classified according to their maturity, which is the date when Applied Opt has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| APPLIED MATLS INC Corp BondUS038222AG04 | View | |
| APPLIED MATERIALS INC Corp BondUS038222AN54 | View | |
| APPLIED MATERIALS INC Corp BondUS038222AP03 | View | |
| APPLIED MATLS INC Corp BondUS038222AJ43 | View | |
| APPLIED MATLS INC Corp BondUS038222AK16 | View | |
| APPLIED MATLS INC Corp BondUS038222AL98 | View |
Understand Applied Opt's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Applied Opt's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.2195 | |||
| Market Risk Adjusted Performance | 0.8795 | |||
| Mean Deviation | 5.64 | |||
| Semi Deviation | 3.54 | |||
| Downside Deviation | 4.42 | |||
| Coefficient Of Variation | 362.58 | |||
| Standard Deviation | 8.84 | |||
| Variance | 78.21 | |||
| Information Ratio | 0.2634 | |||
| Jensen Alpha | 2.15 | |||
| Total Risk Alpha | 1.28 | |||
| Sortino Ratio | 0.5272 | |||
| Treynor Ratio | 0.8695 | |||
| Maximum Drawdown | 59.88 | |||
| Value At Risk | (5.85) | |||
| Potential Upside | 12.94 | |||
| Downside Variance | 19.53 | |||
| Semi Variance | 12.52 | |||
| Expected Short fall | (7.19) | |||
| Skewness | 3.39 | |||
| Kurtosis | 18.64 |
| Risk Adjusted Performance | 0.2195 | |||
| Market Risk Adjusted Performance | 0.8795 | |||
| Mean Deviation | 5.64 | |||
| Semi Deviation | 3.54 | |||
| Downside Deviation | 4.42 | |||
| Coefficient Of Variation | 362.58 | |||
| Standard Deviation | 8.84 | |||
| Variance | 78.21 | |||
| Information Ratio | 0.2634 | |||
| Jensen Alpha | 2.15 | |||
| Total Risk Alpha | 1.28 | |||
| Sortino Ratio | 0.5272 | |||
| Treynor Ratio | 0.8695 | |||
| Maximum Drawdown | 59.88 | |||
| Value At Risk | (5.85) | |||
| Potential Upside | 12.94 | |||
| Downside Variance | 19.53 | |||
| Semi Variance | 12.52 | |||
| Expected Short fall | (7.19) | |||
| Skewness | 3.39 | |||
| Kurtosis | 18.64 |
Consider Applied Opt's intraday indicators
Applied Opt intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Applied Opt stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Applied Opt Corporate Filings
F4 | 18th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 8th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Applied Stock media impact
Far too much social signal, news, headlines, and media speculation about Applied Opt that are available to investors today. That information is available publicly through Applied media outlets and privately through word of mouth or via Applied internal channels. However, regardless of the origin, that massive amount of Applied data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Applied Opt news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Applied Opt relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Applied Opt's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Applied Opt alpha.
Applied Opt Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Applied Opt can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Applied Opt Corporate Management
| David Kuo | VP, General Counsel and Secretary | Profile | |
| Lindsay Savarese | Investor Relations | Profile | |
| Todd McCrum | Senior Access | Profile | |
| Jessica Hung | VP Controller | Profile |
Already Invested in Applied Opt?
The danger of trading Applied Opt is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Applied Opt is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Applied Opt. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Applied Opt is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Applied Opt offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Applied Opt's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Applied Opt Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Applied Opt Stock: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Applied Opt. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in persons. For more detail on how to invest in Applied Stock please use our How to Invest in Applied Opt guide.You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Applied Opt. If investors know Applied will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Applied Opt listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.04) | Revenue Per Share 5.35 | Quarterly Revenue Growth 0.042 | Return On Assets (0.11) | Return On Equity (0.41) |
The market value of Applied Opt is measured differently than its book value, which is the value of Applied that is recorded on the company's balance sheet. Investors also form their own opinion of Applied Opt's value that differs from its market value or its book value, called intrinsic value, which is Applied Opt's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Applied Opt's market value can be influenced by many factors that don't directly affect Applied Opt's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Applied Opt's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Applied Opt is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Applied Opt's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.