Applied Optoelectronics (NASDAQ:AAOI) Shares Climb 6.6% – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares rose 6.6% on Monday. The stock traded as high as $74.39 and last traded at $71.94. Approximately 11,156,561 shares traded hands during trading, an increase of 7% from the average daily volume of 10,401,553 shares. The stock had previously closed at $67.51.

Analyst Ratings Changes

A number of research analysts have recently weighed in on AAOI shares. Raymond James Financial restated an “outperform” rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Needham & Company LLC cut their price target on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a report on Friday, August 7th. Weiss Ratings raised Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday. Rosenblatt Securities reiterated a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 7th. Finally, Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $147.00.

Applied Optoelectronics Stock Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13. The business has a 50-day moving average of $104.03 and a 200-day moving average of $132.40. The company has a market capitalization of $6.08 billion, a P/E ratio of -92.23 and a beta of 3.85.

Applied Optoelectronics (NASDAQ:AAOI) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, beating 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 business 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 firm posted ($0.16) earnings per share. The business’s revenue for the quarter 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, sell-side analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan 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 value of $411,480.00. Following the sale, the chief financial officer 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction on Monday, October 5th. The stock was sold at an average price of $120.03, for a total value of $720,180.00. Following the sale, the insider owned 371,498 shares of the company’s stock, valued at approximately $44,590,904.94. This trade represents a 1.59% 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 valued at $6,581,484 in the last quarter. 3.80% of the stock is owned by insiders.

Institutional Trading of Applied Optoelectronics

Institutional investors and hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System grew its holdings in Applied Optoelectronics by 23.2% during the 1st quarter. California State Teachers Retirement System now owns 70,464 shares of the semiconductor company’s stock worth $5,961,000 after acquiring an additional 13,265 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at about $955,672,000. Handelsbanken Fonder AB purchased a new stake in shares of Applied Optoelectronics in the 2nd quarter worth approximately $7,719,000. Capstone Capital Management Ltd purchased a new stake in shares of Applied Optoelectronics in the 3rd quarter worth approximately $2,101,000. Finally, Bank of America Corp DE bought a new position in shares of Applied Optoelectronics during the second quarter valued at approximately $33,712,000. 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.