Applied Optoelectronics, Inc. (NASDAQ:AAOI) Given Average Rating of “Hold” by Brokerages

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has been given an average rating of “Hold” by the seven research firms that are presently covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $79.80.

Several equities research analysts recently issued reports on the stock. Northland Securities reiterated a “market perform” rating and issued a $55.00 target price on shares of Applied Optoelectronics in a research note on Friday, February 27th. Needham & Company LLC raised their target price on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the company a “buy” rating in a research note on Friday, February 27th. Raymond James Financial reiterated an “outperform” rating and issued a $160.00 target price on shares of Applied Optoelectronics in a research note on Friday, May 8th. B. Riley Financial upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 target price for the company in a research note on Friday, February 27th. Finally, Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Monday, April 13th.

Insiders Place Their Bets

In related news, CFO Stefan J. Murry sold 33,000 shares of the firm’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total value of $5,717,580.00. Following the completion of the sale, the chief financial officer directly owned 451,906 shares in the company, valued at approximately $78,297,233.56. This trade represents a 6.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Min-Chu (Mike) Chen sold 8,247 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $201.00, for a total transaction of $1,657,647.00. Following the completion of the sale, the director owned 161,053 shares of the company’s stock, valued at $32,371,653. This trade represents a 4.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 395,068 shares of company stock worth $59,023,671 in the last three months. Insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Hedge funds have recently bought and sold shares of the stock. Allworth Financial LP lifted its position in Applied Optoelectronics by 1,923.7% during the fourth quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 731 shares during the last quarter. Comerica Bank bought a new position in shares of Applied Optoelectronics during the third quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Applied Optoelectronics by 166.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 750 shares during the period. Kohmann Bosshard Financial Services LLC bought a new position in shares of Applied Optoelectronics during the fourth quarter worth approximately $55,000. Finally, Headlands Technologies LLC bought a new position in shares of Applied Optoelectronics during the second quarter worth approximately $57,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

Applied Optoelectronics Trading Up 10.2%

Applied Optoelectronics stock opened at $202.89 on Friday. The firm has a 50-day moving average of $154.07 and a 200-day moving average of $85.95. Applied Optoelectronics has a one year low of $15.29 and a one year high of $233.67. 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 cap of $16.28 billion, a price-to-earnings ratio of -307.41 and a beta of 3.66.

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

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.