Applied Optoelectronics (NASDAQ:AAOI) Shares Climb 2.4% on Analyst Upgrade

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) traded up 2.4% during mid-day trading on Tuesday after Northland Securities upgraded the stock from a market perform rating to an outperform rating. Northland Securities now has a $120.00 price target on the stock. Applied Optoelectronics traded as high as $66.58 and last traded at $63.97. 10,898,946 shares traded hands during trading, an increase of 4% from the average daily volume of 10,452,680 shares. The stock had previously closed at $62.50.

Several other equities analysts have also commented on AAOI. Weiss Ratings raised Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, October 21st. Rosenblatt Securities reissued a “buy” rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday, August 7th. B. Riley Financial reduced their price objective on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a report on Thursday, October 15th. Raymond James Financial restated an “outperform” rating and issued a $178.00 price objective on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Finally, Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $156.00.

Insider Buying and Selling

In related news, insider Shu-Hua Yeh sold 6,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $147.73, for a total transaction of $886,380.00. Following the completion of the transaction, the insider owned 377,498 shares of the company’s stock, valued at approximately $55,767,779.54. This trade represents a 1.56% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction that occurred 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 owned 363,168 shares of the company’s stock, valued at $37,359,092.16. This trade represents a 1.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 52,172 shares of company stock valued at $5,985,036. Company insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Institutional investors have recently modified their holdings of the company. Polaris Financial Partners acquired a new position in Applied Optoelectronics during the 3rd quarter worth about $26,000. EFG International AG purchased a new position in Applied Optoelectronics during the 2nd quarter valued at about $44,000. Persistent Asset Partners Ltd purchased a new position in Applied Optoelectronics during the 2nd quarter valued at about $47,000. Fiduciary Financial Advisors acquired a new position in Applied Optoelectronics in the 2nd quarter valued at about $48,000. Finally, Integrated Wealth Concepts LLC acquired a new position in Applied Optoelectronics in the 2nd quarter valued at about $58,000. 61.70% of the stock is owned by institutional investors and hedge funds.

Applied Optoelectronics Price Performance

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 market capitalization of $5.41 billion, a PE ratio of -82.01 and a beta of 4.04. The stock’s 50 day simple moving average is $97.51 and its 200-day simple moving average is $112.88.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings results 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. 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 for the quarter, compared to analysts’ expectations of $190.48 million. During the same quarter in the prior year, the company earned ($0.16) earnings per share. The business’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. As a group, equities analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

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.