Applied Optoelectronics (NASDAQ:AAOI) Stock Rating Raised to Outperform at Northland Securities

Applied Optoelectronics (NASDAQ:AAOI) was upgraded by investment analysts at Northland Securities from a “market perform” rating to an “outperform” rating in a research report issued on Monday, Briefing.com reports. The brokerage currently has a $120.00 target price on the semiconductor company’s stock. Northland Securities‘s price objective indicates a potential upside of 73.79% from the company’s current price.

A number of other research firms have also commented on AAOI. Rosenblatt Securities reissued a “buy” rating and issued a $220.00 target price on shares of Applied Optoelectronics in a report on Friday, August 7th. Weiss Ratings upgraded Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, October 21st. Needham & Company LLC decreased their price objective on shares of Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating for the company in a report on Tuesday, October 27th. B. Riley Financial lowered their price objective on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a research report on Thursday, October 15th. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Four research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $156.00.

Applied Optoelectronics Price Performance

NASDAQ AAOI opened at $69.05 on Monday. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The company has a market cap of $5.84 billion, a PE ratio of -88.53 and a beta of 4.04. Applied Optoelectronics has a 1 year low of $18.50 and a 1 year high of $233.67. The stock’s 50-day moving average price is $98.76 and its two-hundred day moving average price is $112.74.

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

Insider Buying and Selling

In other news, insider Hung-Lun Chang sold 32,172 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total value of $3,545,676.12. Following the sale, the insider owned 249,276 shares in the company, valued at approximately $27,472,707.96. The trade was a 11.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Stefan J. Murry sold 4,000 shares of the business’s 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 completion of the transaction, the chief financial officer directly owned 363,168 shares in the company, valued at approximately $37,359,092.16. This represents a 1.09% decrease in their position. 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. Insiders have sold a total of 56,887 shares of company stock worth $6,581,484 over the last quarter. 3.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Large investors have recently bought and sold shares of the company. Polaris Financial Partners acquired a new position in Applied Optoelectronics during the third quarter worth about $26,000. EFG International AG bought a new stake in shares of Applied Optoelectronics in the second quarter worth $44,000. Persistent Asset Partners Ltd acquired a new stake in Applied Optoelectronics in the second quarter valued at $47,000. Fiduciary Financial Advisors acquired a new stake in Applied Optoelectronics in the second quarter valued at $48,000. Finally, Integrated Wealth Concepts LLC acquired a new stake in Applied Optoelectronics in the second quarter valued at $58,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

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.