Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 7.3% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shot up 7.3% on Monday . The stock traded as high as $148.53 and last traded at $145.5630. Approximately 5,050,581 shares were traded during trading, a decline of 52% from the average daily volume of 10,592,223 shares. The stock had previously closed at $135.63.

Analyst Ratings Changes

AAOI has been the topic of several recent analyst reports. Rosenblatt Securities reiterated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Friday. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday. B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a report on Friday. Raymond James Financial set a $151.00 target price on shares of Applied Optoelectronics in a research report on Friday. Finally, Needham & Company LLC decreased their target price on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday. 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 stock. Based on data from MarketBeat, Applied Optoelectronics has a consensus rating of “Hold” and an average target price of $134.00.

Applied Optoelectronics Stock Performance

The company has a market capitalization of $10.75 billion, a P/E ratio of -171.96 and a beta of 3.76. 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 company has a fifty day moving average price of $137.34 and a two-hundred day moving average price of $118.71.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analyst estimates of $190.48 million. During the same quarter last year, the business earned ($0.16) EPS. The firm’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. Equities analysts forecast that Applied Optoelectronics, Inc. will post 0.6 earnings per share for the current fiscal year.

Insider Activity at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 33,000 shares of the business’s stock in a transaction on 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 sale, the chief financial officer owned 451,906 shares of the company’s stock, valued at $78,297,233.56. The trade was a 6.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $170.60, for a total value of $6,880,127.40. Following the completion of the sale, the insider owned 286,124 shares of the company’s stock, valued at $48,812,754.40. The trade was a 12.35% 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. Insiders have sold 506,215 shares of company stock valued at $87,409,447 in the last quarter. Insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AAOI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Applied Optoelectronics by 10.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock worth $393,000 after purchasing an additional 2,415 shares during the period. Cetera Investment Advisers bought a new stake in Applied Optoelectronics in the second quarter worth approximately $377,000. New York State Common Retirement Fund lifted its stake in Applied Optoelectronics by 36.0% in the second quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock valued at $437,000 after buying an additional 4,500 shares during the period. Invesco Ltd. lifted its stake in Applied Optoelectronics by 50.0% in the second quarter. Invesco Ltd. now owns 60,817 shares of the semiconductor company’s stock valued at $1,562,000 after buying an additional 20,261 shares during the period. Finally, First Trust Advisors LP bought a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $952,000. 61.70% of the stock is owned by institutional investors and hedge funds.

About Applied Optoelectronics

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.