Applied Optoelectronics (NASDAQ:AAOI) Shares Down 12% – Should You Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded down 12% during mid-day trading on Thursday. The stock traded as low as $66.28 and last traded at $68.07. Approximately 13,948,407 shares changed hands during trading, an increase of 34% from the average session volume of 10,403,912 shares. The stock had previously closed at $77.32.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on AAOI shares. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Rosenblatt Securities reissued a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 7th. Raymond James Financial restated an “outperform” rating and set a $178.00 price target on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. B. Riley Financial decreased their price target on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a report on Thursday, October 15th. Finally, Weiss Ratings upgraded shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and a consensus price target of $147.00.

Applied Optoelectronics Price Performance

The stock has a fifty day moving average of $106.93 and a 200 day moving average of $132.94. The stock has a market cap of $5.76 billion, a price-to-earnings ratio of -87.27 and a beta of 3.85. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.04. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company had revenue of $191.92 million for the quarter, compared to the consensus estimate of $190.48 million. During the same quarter in the prior year, the company earned ($0.16) EPS. Applied Optoelectronics’s quarterly revenue was up 86.3% on a year-over-year basis. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. On average, analysts expect that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In related news, insider Shu-Hua Yeh sold 6,000 shares of the business’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $120.03, for a total value of $720,180.00. Following the completion of the transaction, the insider directly owned 371,498 shares in the company, valued at $44,590,904.94. The trade was a 1.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. Murry sold 4,000 shares of the stock in a transaction on Monday, October 12th. The stock was sold at an average price of $102.87, for a total transaction of $411,480.00. Following the sale, the chief financial officer directly owned 363,168 shares in the company, valued at $37,359,092.16. This trade represents a 1.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 56,887 shares of company stock worth $6,581,484 over the last quarter. 3.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. raised its position in shares of Applied Optoelectronics by 1.4% in the first quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock worth $1,529,000 after acquiring an additional 243 shares during the period. Allworth Financial LP grew its position in shares of Applied Optoelectronics by 68.8% during the 2nd quarter. Allworth Financial LP now owns 596 shares of the semiconductor company’s stock valued at $88,000 after acquiring an additional 243 shares during the period. Polaris Financial Partners acquired a new stake in shares of Applied Optoelectronics during the 3rd quarter valued at about $26,000. EFG International AG purchased a new position in shares of Applied Optoelectronics in the 2nd quarter valued at about $44,000. Finally, Persistent Asset Partners Ltd purchased a new position in shares of Applied Optoelectronics in the 2nd quarter valued at about $47,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.