Applied Optoelectronics (NASDAQ:AAOI) Stock Falls 12.8% – Time to Sell?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price was down 12.8% during mid-day trading on Friday. The company traded as low as $65.77 and last traded at $69.05. Approximately 17,012,821 shares were traded during mid-day trading, an increase of 63% from the average session volume of 10,434,412 shares. The stock had previously closed at $79.19.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Weiss Ratings upgraded shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, October 21st. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Raymond James Financial restated an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price target on shares of Applied Optoelectronics in a research report on Friday, August 7th. Finally, B. Riley Financial reduced their price target 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. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $143.00.

Applied Optoelectronics Stock Down 12.8%

The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. The firm has a market capitalization of $5.84 billion, a P/E ratio of -88.53 and a beta of 3.85. The stock has a fifty day moving average price of $99.96 and a two-hundred day moving average price of $112.57.

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

Insider Transactions at Applied Optoelectronics

In other news, CFO Stefan Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction dated Monday, October 12th. The shares were 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 of the company’s stock, valued at approximately $37,359,092.16. The trade was a 1.09% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $120.03, for a total transaction of $720,180.00. Following the sale, the insider directly owned 371,498 shares of the company’s stock, valued at approximately $44,590,904.94. This represents a 1.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 56,887 shares of company stock worth $6,581,484. 3.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently bought and sold shares of AAOI. BOCHK Asset Management Ltd acquired a new stake in shares of Applied Optoelectronics during the 3rd quarter worth approximately $99,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Applied Optoelectronics in the 3rd quarter worth approximately $14,087,000. Pilgrim Partners Asia Pte Ltd acquired a new position in Applied Optoelectronics during the 3rd quarter valued at approximately $695,000. MGO One Seven LLC boosted its position in Applied Optoelectronics by 79.8% during the 3rd quarter. MGO One Seven LLC now owns 4,510 shares of the semiconductor company’s stock valued at $448,000 after purchasing an additional 2,002 shares during the period. Finally, M & L Capital Management Ltd bought a new position in Applied Optoelectronics during the 3rd quarter worth $1,568,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

About Applied Optoelectronics

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.