Applied Optoelectronics (NASDAQ:AAOI) Trading 8.3% Higher – Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded up 8.3% during trading on Tuesday . The company traded as high as $30.49 and last traded at $30.1480. 3,977,608 shares changed hands during trading, a decline of 15% from the average session volume of 4,665,278 shares. The stock had previously closed at $27.84.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. B. Riley restated a “sell” rating and issued a $15.00 price target on shares of Applied Optoelectronics in a research report on Monday, November 10th. Northland Securities set a $45.00 target price on shares of Applied Optoelectronics in a research report on Thursday. Rosenblatt Securities increased their price target on shares of Applied Optoelectronics from $35.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. Finally, Needham & Company LLC increased their target price on Applied Optoelectronics from $38.00 to $43.00 and gave the company a “buy” rating in a report on Thursday. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $35.60.

Applied Optoelectronics Trading Up 3.8%

The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63. The firm has a market cap of $2.48 billion, a price-to-earnings ratio of -11.28 and a beta of 3.25. The business’s 50-day moving average price is $28.72 and its two-hundred day moving average price is $25.57.

Applied Optoelectronics (NASDAQ:AAOI) last announced its earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. The firm had revenue of $118.63 million for the quarter, compared to analyst estimates of $119.77 million. Applied Optoelectronics had a negative net margin of 36.97% and a negative return on equity of 7.34%. Applied Optoelectronics’s revenue was up 82.1% compared to the same quarter last year. During the same quarter last year, the business earned ($0.21) earnings per share. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. Equities analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

Hedge Funds Weigh In On Applied Optoelectronics

Several large investors have recently added to or reduced their stakes in AAOI. CloudAlpha Capital Management Limited Hong Kong grew its holdings in Applied Optoelectronics by 410.7% in the 2nd quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company’s stock valued at $36,197,000 after buying an additional 1,133,115 shares during the period. Hawk Ridge Capital Management LP acquired a new stake in shares of Applied Optoelectronics in the third quarter worth approximately $21,392,000. Alyeska Investment Group L.P. purchased a new stake in Applied Optoelectronics in the third quarter valued at approximately $19,738,000. Vanguard Group Inc. increased its position in Applied Optoelectronics by 13.6% during the third quarter. Vanguard Group Inc. now owns 4,624,570 shares of the semiconductor company’s stock worth $119,915,000 after purchasing an additional 551,910 shares during the last quarter. Finally, Citigroup Inc. raised its stake in Applied Optoelectronics by 60.0% during the third quarter. Citigroup Inc. now owns 1,160,456 shares of the semiconductor company’s stock worth $30,091,000 after purchasing an additional 435,349 shares during the period. 61.72% of the stock is currently owned by hedge funds and other institutional investors.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.