Price Don’t Lie: Is Buying 52-Week Stock Like Applied Optoelectronics Inc a Winning Strategy?

Price Don't Lie: Is Buying 52 Week Stock Like Applied Optoelectronics Inc a Winning Strategy?

The stock of Applied Optoelectronics Inc (NASDAQ:AAOI) hit a new 52-week high and has $52.12 target or 100.00% above today’s $26.06 share price. The 6 months bullish chart indicates low risk for the $475.15M company. The 1-year high was reported on Nov, 17 by Barchart.com. If the $52.12 price target is reached, the company will be worth $475.15 million more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 385,084 shares traded hands. Applied Optoelectronics Inc (NASDAQ:AAOI) has risen 64.85% since April 15, 2016 and is uptrending. It has outperformed by 60.23% the S&P500.

Applied Optoelectronics Inc (NASDAQ:AAOI) Ratings Coverage

Out of 4 analysts covering Applied Optoelectronics (NASDAQ:AAOI), 4 rate it a “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. $25 is the highest target while $21 is the lowest. The $23 average target is -11.74% below today’s ($26.06) stock price. Applied Optoelectronics has been the topic of 6 analyst reports since August 6, 2015 according to StockzIntelligence Inc. Cowen & Co maintained the shares of AAOI in a report on Thursday, February 25 with “Outperform” rating. The firm has “Outperform” rating by Northland Capital given on Thursday, August 6.

According to Zacks Investment Research, “Applied Optoelectronics, Inc. designs, develops and manufactures advanced optical devices, packaged optical components, optical subsystems, laser transmitters and fiber optic transceivers. The company’s products are used in fiber optic communications equipment for FTTH, point-to-point telecom, datacom and access networks and systems supporting cable television, network infrastructure. Applied Optoelectronics, Inc. is headquartered in Sugar Land, Texas.”

Insitutional Activity: The institutional sentiment decreased to 0.71 in 2016 Q2. Its down 1.61, from 2.32 in 2016Q1. The ratio turned negative, as 24 funds sold all Applied Optoelectronics Inc shares owned while 28 reduced positions. 13 funds bought stakes while 24 increased positions. They now own 12.65 million shares or 9.15% less from 13.93 million shares in 2016Q1.
Royal Bank Of Canada has invested 0% of its portfolio in Applied Optoelectronics Inc (NASDAQ:AAOI). Gray Fin Ga Adv Adv holds 20,748 shares or 0% of its portfolio. Moreover, Aqr Capital Ltd Liability Company has 0% invested in Applied Optoelectronics Inc (NASDAQ:AAOI) for 41,529 shares. G2 Invest Prtnrs Mngmt Ltd Liability holds 0.63% or 122,098 shares in its portfolio. Ardsley Advisory Prns holds 1.06% or 550,000 shares in its portfolio. Vanguard Grp Incorporated reported 580,075 shares or 0% of all its holdings. Thompson Davis And Communications accumulated 0.3% or 16,750 shares. Wellington Mngmt Group Llp accumulated 2.25 million shares or 0.01% of the stock. Manufacturers Life Com The last reported 0% of its portfolio in the stock. Selz Limited Liability holds 1.28% of its portfolio in Applied Optoelectronics Inc (NASDAQ:AAOI) for 405,000 shares. Deutsche Bankshares Ag has 15,488 shares for 0% of their US portfolio. Waddell Reed Fin last reported 190,800 shares in the company. The New York-based National Bank & Trust Of Mellon has invested 0% in Applied Optoelectronics Inc (NASDAQ:AAOI). Portolan Cap Mngmt Limited Com accumulated 354,480 shares or 0.57% of the stock. Raymond James Financial Services Advisors Inc last reported 0% of its portfolio in the stock.

Insider Transactions: Since May 25, 2016, the stock had 2 buys, and 4 sales for $92,083 net activity. The insider Chen Min-Chu (Mike) bought $99,750. Murry Stefan J. sold $18,234 worth of stock. Another trade for 10,000 shares valued at $101,460 was made by Yeh William H on Friday, May 27. Kuo David C sold $8,126 worth of stock or 594 shares. Chang Hung-Lun (Fred) sold $13,043 worth of Applied Optoelectronics Inc (NASDAQ:AAOI) on Monday, August 1.

More news for Applied Optoelectronics Inc (NASDAQ:AAOI) were recently published by: Seekingalpha.com, which released: “Applied Optoelectronics: New Data Points – Top Idea Update” on November 17, 2016. Seekingalpha.com‘s article titled: “Applied Optoelectronics: Solid Story And Acquisition Candidate” and published on November 12, 2016 is yet another important article.

AAOI Company Profile

Applied Optoelectronics, Inc., incorporated on March 25, 2013, is a vertically integrated well-known provider of fiber-optic networking products. The Firm offers its products for approximately three networking end markets, such as Internet data center; cable television (CATV), and fiber-to-the-home (FTTH). The Firm creates and makes a range of optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment. The Company’s clients in the Internet data center market include Internet (Web 2.0) data center operators, to whom it supplies optical transceivers that plug into switches and servers within the data center, and allow these network devices to send and receive data over fiber optic cables. To the CATV market, the Company supplies a range of products, including lasers, transmitters and turnkey equipment, as well as headend, node and distribution equipment. The Firm designs, makes and integrates its own analog and digital lasers using a combination of Metal Organic Chemical Vapor Deposition (MOCVD) and its Molecular Beam Epitaxy (MBE) fabrication process.

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