Applied Optoelectronics’ (AAOI) Buy Rating Reiterated at Rosenblatt Securities

Applied Optoelectronics (NASDAQ:AAOI)‘s stock had its “buy” rating reaffirmed by Rosenblatt Securities in a research report issued to clients and investors on Monday,Benzinga reports. They currently have a $220.00 price target on the semiconductor company’s stock. Rosenblatt Securities’ price target suggests a potential upside of 35.93% from the company’s previous close.

Several other equities analysts also recently issued reports on the stock. Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. Northland Securities reaffirmed a “market perform” rating and set a $55.00 price objective on shares of Applied Optoelectronics in a research note on Friday, February 27th. B. Riley Financial raised shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 price objective for the company in a report on Friday, February 27th. Raymond James Financial reiterated an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Finally, Needham & Company LLC boosted their target price on Applied Optoelectronics from $43.00 to $80.00 and gave the stock a “buy” rating in a report on Friday, February 27th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $113.80.

Applied Optoelectronics Price Performance

Applied Optoelectronics stock opened at $161.85 on Monday. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.83 and a quick ratio of 3.03. The company has a market capitalization of $12.99 billion, a PE ratio of -245.23 and a beta of 3.67. Applied Optoelectronics has a one year low of $18.50 and a one year high of $233.67. The business has a 50 day simple moving average of $169.57 and a 200 day simple moving average of $97.59.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The company had revenue of $151.14 million during the quarter, compared to analyst estimates of $156.98 million. During the same period in the prior year, the firm earned ($0.02) EPS. Applied Optoelectronics’s quarterly revenue was up 51.3% compared to the same quarter last year. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. On average, sell-side analysts forecast that Applied Optoelectronics will post 0.6 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Stefan J. Murry sold 33,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total transaction of $5,717,580.00. Following the transaction, the chief financial officer owned 451,906 shares in the company, valued at $78,297,233.56. This represents a 6.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the sale, the insider directly owned 286,124 shares in the company, valued at approximately $48,812,754.40. This represents a 12.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 500,215 shares of company stock valued at $86,716,414 over the last three months. Company insiders own 3.80% of the company’s stock.

Institutional Trading of Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of AAOI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position 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 worth $393,000 after purchasing an additional 2,415 shares during the last quarter. Cetera Investment Advisers bought a new position in Applied Optoelectronics in the 2nd quarter valued at $377,000. New York State Common Retirement Fund increased its stake in shares of Applied Optoelectronics by 36.0% in the 2nd quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock valued at $437,000 after buying an additional 4,500 shares during the period. Invesco Ltd. increased its stake in shares of Applied Optoelectronics by 50.0% in the 2nd quarter. Invesco Ltd. now owns 60,817 shares of the semiconductor company’s stock valued at $1,562,000 after buying an additional 20,261 shares during the period. Finally, First Trust Advisors LP bought a new stake in shares of Applied Optoelectronics during the second quarter worth $952,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

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.