Applied Optoelectronics Inc (AAOI, Financial), a company specializing in fiber-optic networking products, has reported an insider purchase by Director Che-wei Lin. According to a recent SEC Filing, the insider acquired 31,370 shares of the company on March 18, 2024. This transaction has increased the director's stake in the company, reflecting a potential confidence in the company's future performance.
Over the past year, the insider has purchased a total of 31,370 shares and has not sold any shares of Applied Optoelectronics Inc. This pattern of insider activity can often provide insights into the company's health and prospects as perceived by its own management and board members.
Insider Trends
The transaction history for Applied Optoelectronics Inc shows a mix of insider buying and selling activities. Over the past year, there have been 7 insider buys and 10 insider sells. This activity can be visualized in the following insider trend image:
Valuation and Market Cap
On the date of the insider's recent purchase, shares of Applied Optoelectronics Inc were trading at $12.7, resulting in a market cap of $498.408 million. The company's stock valuation, when compared to the GuruFocus Value (GF Value) of $4.16, indicates a price-to-GF-Value ratio of 3.05. This suggests that the stock is significantly overvalued according to the GF Value metric.
The GF Value is a proprietary intrinsic value estimate from GuruFocus, which is calculated based on historical trading multiples, an adjustment factor for past returns and growth, and future business performance estimates provided by Morningstar analysts.
Applied Optoelectronics Inc is engaged in the design, manufacture, and sale of various fiber-optic networking products. The company's offerings include optical modules, lasers, transmitters, and turnkey equipment, which are used in the internet data center, cable television broadband, fiber-to-the-home, and telecommunications markets.
Insider buying and selling activities are closely monitored by investors as they can provide valuable insights into the company's internal perspective on its performance and outlook. While insider buying may suggest confidence in the company's future, it is important for investors to consider the broader context of the market and the company's valuation.
For more detailed information on Applied Optoelectronics Inc's insider transactions, financials, and performance, investors are encouraged to review additional filings and reports available on financial databases and the company's official website.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
