Recent trading patterns in the stock of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have investors on high alert. Analysts often look at historical trading patterns to predict a stock’s future performance. In the case of AAOI, the data might be telling investors a thing or two about where the stock is headed. In the most recent quarter, institutional ownership increased by a net of 763477 shares, or 4.84%. This is a bullish sign and indicates that institutions are feeling more optimistic about the outlook for AAOI overall. 152 holders increased their positions, 75 decreased their positions, and 8 holders held their positions.
Among institutions that increased their positions, 86 were new positions. Among holders that decreased their positions, 30 sold out of the stock Applied Optoelectronics, Inc.. Insider ownership during the latest quarter decreased by a net of 130988 shares, indicating that AAOI’s key executives are feeling more bearish about the stock than they did three months ago. This activity represents a continuation of a theme over the past twelve months. Insider ownership during the last year has decreased by a net of 189870 shares. 15.38% of insider trades in the last 12 months were buys, and 84.62% were sells.
Over the past year, the price of Applied Optoelectronics, Inc. (AAOI) has increased 174.57% while the S&P 500 has increased 19.15%. During the past 20 days, AAOI has increased 2.74% while the broad market has increased 1.82%. AAOI ‘s 20-day moving average currently sits above its 100-day moving average. This is a bullish signal that suggests the stock price might continue to rise. AAOI’s average trading volume during the past 20 days is higher than the average volume over the past 100 days, which could be an indication that investors are feeling more certain than usual about the direction of AAOI’s future price movements.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) has a 20-day RSI of 44.38%. According to this momentum indicator, a reading between 30 and 70 suggests the stock is not especially cheap or expensive, and not on the brink of a trend reversal. The MACD tells a different story. AAOI’s 9-day MACD currently sits above the 20-day MACD, indicating that the stock might be on the cusp of an uptrend. AAOI’s average trading volatility during the past few weeks is -32.35% lower than the average volatility over the past 100 days. This means that the stock’s daily price swings have been less extreme in recent times compared to the past.
Analysts expect Applied Optoelectronics, Inc. (AAOI) to generate earnings per share of $4.98 in 2017. This works out to an increase of 325.64% compared to last year’s earnings. For comparison’s sake, analysts expect the S&P 500 to grow earnings by an average of 12% in 2017. The average investment rating for AAOI on a scale of 1 to 5 (1 being a strong sell and 5 being a strong buy) is a 4.11 or a Moderate Buy. Three months ago, analysts assigned AAOI a 4.33 rating, which implies that analysts have become more pessimistic about the outlook for the stock over the next year.