Applied Optoelectronics (NASDAQ:AAOI) Issues Earnings Results, Beats Estimates By $0.11 EPS

Applied Optoelectronics (NASDAQ:AAOI) issued its quarterly earnings results on Thursday. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.11, FiscalAI reports. Applied Optoelectronics had a negative net margin of 36.97% and a negative return on equity of 7.34%. The firm had revenue of $134.27 million for the quarter, compared to analyst estimates of $131.56 million. Applied Optoelectronics updated its Q1 2026 guidance to -0.090-0.000 EPS.

Applied Optoelectronics Stock Performance

NASDAQ AAOI traded down $4.43 during trading on Thursday, reaching $53.69. 5,154,143 shares of the company’s stock were exchanged, compared to its average volume of 5,102,567. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63. The business has a 50 day moving average price of $40.61 and a 200-day moving average price of $32.00. The stock has a market capitalization of $3.67 billion, a P/E ratio of -16.67 and a beta of 3.32. Applied Optoelectronics has a fifty-two week low of $9.71 and a fifty-two week high of $59.25.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, insider David C. Kuo sold 17,467 shares of the company’s stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $50.17, for a total value of $876,319.39. Following the transaction, the insider directly owned 111,663 shares in the company, valued at $5,602,132.71. The trade was a 13.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Stefan J. Murry sold 11,693 shares of the stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $50.25, for a total transaction of $587,573.25. Following the completion of the transaction, the chief financial officer directly owned 290,050 shares in the company, valued at $14,575,012.50. The trade was a 3.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 66,520 shares of company stock valued at $3,080,367 over the last quarter. 4.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Cetera Investment Advisers bought a new position in Applied Optoelectronics during the second quarter worth about $377,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Applied Optoelectronics by 10.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock valued at $393,000 after purchasing an additional 2,415 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank grew its position in shares of Applied Optoelectronics by 43.4% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,128 shares of the semiconductor company’s stock worth $237,000 after purchasing an additional 2,762 shares in the last quarter. Envestnet Asset Management Inc. acquired a new position in shares of Applied Optoelectronics during the 3rd quarter worth approximately $235,000. Finally, Creative Planning bought a new position in shares of Applied Optoelectronics during the third quarter worth approximately $218,000. 61.70% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research firms recently issued reports on AAOI. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. Northland Securities set a $45.00 price target on Applied Optoelectronics in a research note on Thursday, December 11th. Needham & Company LLC boosted their price target on Applied Optoelectronics from $38.00 to $43.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Rosenblatt Securities reiterated a “buy” rating and set a $50.00 price objective on shares of Applied Optoelectronics in a research note on Thursday, February 19th. Finally, B. Riley Financial reissued a “sell” rating and issued a $15.00 price objective on shares of Applied Optoelectronics in a report on Monday, November 10th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $35.60.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc develops and manufactures high-speed fiber-optic networking products designed to support the growing bandwidth demands of data centers, telecommunications carriers and internet content providers. The company’s core offerings include pluggable optical transceiver modules, transponders and optical components that enable data transmission at rates ranging from 1G to 400G. These products are used to facilitate long-haul, metro and intra-data center connectivity, addressing the need for scalable, low-latency and energy-efficient solutions in modern network infrastructures.

The company’s product portfolio spans small-form factor pluggable modules such as SFP+, QSFP+ and QSFP28 units, as well as more advanced form factors like CFP2 and OSFP for ultra-high-speed applications.