Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 12.8% – Here’s What Happened

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded down 12.8% on Friday. The stock traded as low as $65.77 and last traded at $69.05. 17,012,821 shares were traded during trading, an increase of 63% from the average daily volume of 10,434,412 shares. The stock had previously closed at $79.19.

Analyst Upgrades and Downgrades

AAOI has been the topic of a number of research reports. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Rosenblatt Securities restated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Friday, August 7th. Needham & Company LLC cut their price objective on Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating on the stock in a research report on Tuesday, October 27th. Weiss Ratings raised Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Finally, Raymond James Financial reiterated an “outperform” rating and issued a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $143.00.

Applied Optoelectronics Trading Down 12.8%

The firm has a market capitalization of $5.84 billion, a price-to-earnings ratio of -88.53 and a beta of 3.85. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. The company has a 50-day moving average price of $98.76 and a 200-day moving average price of $112.74.

Applied Optoelectronics (NASDAQ:AAOI) last issued its 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. The business had revenue of $191.92 million for the quarter, compared to analyst estimates of $190.48 million. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. The business’s quarterly revenue was up 86.3% on a year-over-year basis. During the same quarter last year, the company earned ($0.16) EPS. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, research analysts forecast that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction on Monday, October 12th. The shares were 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $720,180.00. Following the completion of the sale, the insider directly 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 56,887 shares of company stock worth $6,581,484. 3.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently bought and sold shares of the stock. BOCHK Asset Management Ltd purchased a new position in Applied Optoelectronics in the third quarter valued at about $99,000. Mirae Asset Global Investments Co. Ltd. purchased a new stake in shares of Applied Optoelectronics in the third quarter worth about $14,087,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Applied Optoelectronics in the third quarter worth about $695,000. MGO One Seven LLC grew its stake in shares of Applied Optoelectronics by 79.8% in the third quarter. MGO One Seven LLC now owns 4,510 shares of the semiconductor company’s stock valued at $448,000 after buying an additional 2,002 shares in the last quarter. Finally, M & L Capital Management Ltd acquired a new stake in shares of Applied Optoelectronics in the third quarter valued at about $1,568,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

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.