Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 12% – Here’s Why

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) fell 12% on Thursday. The company traded as low as $66.28 and last traded at $68.07. Approximately 13,948,407 shares changed hands during trading, an increase of 34% from the average session volume of 10,403,912 shares. The stock had previously closed at $77.32.

Analyst Upgrades and Downgrades

Several brokerages have recently weighed in on AAOI. B. Riley Financial reduced their target price on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a research note on Thursday, October 15th. Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price target on shares of Applied Optoelectronics in a research note on Friday, August 7th. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Weiss Ratings raised shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday. Finally, Needham & Company LLC decreased their price objective on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Applied Optoelectronics has an average rating of “Hold” and a consensus target price of $147.00.

Applied Optoelectronics Price Performance

The stock has a 50 day moving average of $104.03 and a 200-day moving average of $132.23. 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 stock has a market capitalization of $5.71 billion, a P/E ratio of -86.55 and a beta of 3.85.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 EPS for the quarter, beating the consensus estimate 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 company had revenue of $191.92 million for the quarter, compared to the consensus estimate of $190.48 million. During the same quarter in the prior year, the company posted ($0.16) EPS. Applied Optoelectronics’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. On average, equities research analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Stefan Murry sold 4,000 shares of the business’s 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 completion of the sale, the chief financial officer directly owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. The trade was a 1.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the company’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the completion of the transaction, the insider owned 371,498 shares in the company, valued at approximately $44,590,904.94. The trade was a 1.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 56,887 shares of company stock valued at $6,581,484. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Large investors have recently added to or reduced their stakes in the stock. Signaturefd LLC lifted its position in shares of Applied Optoelectronics by 206.8% in the 3rd quarter. Signaturefd LLC now owns 2,043 shares of the semiconductor company’s stock worth $203,000 after purchasing an additional 1,377 shares during the period. Wedbush Securities Inc. boosted its stake in shares of Applied Optoelectronics by 99.0% during the third quarter. Wedbush Securities Inc. now owns 6,244 shares of the semiconductor company’s stock valued at $620,000 after purchasing an additional 3,106 shares in the last quarter. Inspire Investing LLC bought a new position in shares of Applied Optoelectronics during the third quarter valued at approximately $481,000. MBL Wealth LLC increased its holdings in Applied Optoelectronics by 364.7% during the third quarter. MBL Wealth LLC now owns 14,331 shares of the semiconductor company’s stock valued at $1,422,000 after buying an additional 11,247 shares during the period. Finally, Oakmont Investment Advisors Inc. purchased a new position in Applied Optoelectronics during the third quarter valued at approximately $526,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

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.