Applied Optoelectronics (NASDAQ:AAOI) Stock Price Target Cut by B. Riley Financial

Applied Optoelectronics (NASDAQ:AAOI) had its target price dropped by stock analysts at B. Riley Financial from $92.00 to $45.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has a “neutral” rating on the semiconductor company’s stock. B. Riley Financial‘s target price points to a potential downside of 6.44% from the company’s previous close.

Several other analysts have also weighed in on the company. Raymond James Financial restated an “outperform” rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Needham & Company LLC decreased their target price on Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating for the company in a research report on Friday. Northland Securities upgraded Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 target price for the company in a research report on Monday. Finally, Rosenblatt Securities lowered their price target on Applied Optoelectronics from $220.00 to $115.00 and set a “buy” rating for the company in a report on Friday. Four 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, Applied Optoelectronics presently has an average rating of “Moderate Buy” and an average target price of $111.60.

Applied Optoelectronics Stock Up 2.6%

Shares of AAOI traded up $1.21 during midday trading on Friday, hitting $48.10. The company had a trading volume of 8,418,125 shares, compared to its average volume of 10,561,360. The stock has a market cap of $4.07 billion, a price-to-earnings ratio of -62.54 and a beta of 4.04. The company’s 50 day moving average price is $94.22 and its 200 day moving average price is $113.19. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. Applied Optoelectronics has a 52 week low of $18.50 and a 52 week high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.14 by $0.03. The business had revenue of $269.88 million for the quarter, compared to analysts’ expectations of $268.11 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company’s quarterly revenue was up 127.5% compared to the same quarter last year. During the same quarter last year, the company posted ($0.09) earnings per share. On average, equities research analysts predict that Applied Optoelectronics will post 0.55 EPS for the current year.

Insider Transactions at Applied Optoelectronics

In related news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $147.73, for a total value of $886,380.00. Following the sale, the insider directly owned 377,498 shares in the company, valued at $55,767,779.54. This trade represents a 1.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. 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 transaction of $411,480.00. Following the completion of the sale, the chief financial officer owned 363,168 shares in the company, valued at approximately $37,359,092.16. This represents a 1.09% 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. Over the last quarter, insiders sold 52,172 shares of company stock worth $5,985,036. Insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several large investors have recently made changes to their positions in AAOI. BlackRock Inc. acquired a new stake in Applied Optoelectronics in the second quarter worth about $955,672,000. Renaissance Technologies LLC bought a new position in Applied Optoelectronics in the 1st quarter valued at about $47,817,000. William Blair Investment Management LLC bought a new position in Applied Optoelectronics in the 2nd quarter valued at about $74,703,000. Bank of America Corp DE bought a new position in Applied Optoelectronics in the 2nd quarter valued at about $33,712,000. Finally, Bank of New York Mellon Corp acquired a new position in Applied Optoelectronics during the 2nd quarter valued at about $32,567,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

Key Applied Optoelectronics News

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: AAOI reported third-quarter revenue of $269.88 million, up 127.5% year over year, and earnings of $0.17 per share, above analysts’ $0.14 estimate. The company also said it achieved a sixth consecutive quarter of record revenue and returned to GAAP profitability. Third-quarter results
• Positive Sentiment: Data-center sales more than tripled from a year earlier, and next-quarter guidance points to further growth—supportive signals for demand related to AI networking. Earnings reaction and outlook
• Neutral Sentiment: Rosenblatt cut its price target to $115 from $220 but maintained a Buy rating. The lower target signals a more cautious outlook, while the continued Buy recommendation remains supportive. Price target update
• Neutral Sentiment: The company granted 1,346 shares to three new employees under its inducement plan, a small equity award with limited apparent near-term financial impact. Employee equity grants
• Negative Sentiment: Gross margin remained around 28%, tempering the strong sales growth. Plans to expand U.S. manufacturing capacity in 2027 are also taking longer because of power and construction issues, which could constrain execution. Margins and manufacturing update
• Negative Sentiment: AAOI has faced selling alongside other AI-optical stocks, even as companies in the group report strong results. This sector-wide pullback may be weighing on shares independently of AAOI’s earnings beat. AI-optical sector selloff

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.