Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 6.5% – Here’s Why

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) rose 6.5% during mid-day trading on Monday . The stock traded as high as $160.99 and last traded at $160.00. Approximately 9,585,600 shares traded hands during trading, a decline of 11% from the average daily volume of 10,740,532 shares. The stock had previously closed at $150.28.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a report on Friday, August 7th. Needham & Company LLC cut their price objective on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Raymond James Financial restated an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Tuesday, July 7th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $139.40.

Applied Optoelectronics Stock Up 4.7%

The firm’s 50-day simple moving average is $132.01 and its 200 day simple moving average is $122.23. 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 company has a market cap of $13.31 billion, a P/E ratio of -201.79 and a beta of 3.76.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04. The company had revenue of $191.92 million during 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%.Applied Optoelectronics’s revenue was up 86.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.16) EPS. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. On average, research analysts forecast that Applied Optoelectronics, Inc. will post 0.6 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In related news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the firm’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $166.53, for a total value of $9,825,270.00. Following the completion of the transaction, the chief executive officer owned 1,302,436 shares of the company’s stock, valued at approximately $216,894,667.08. This trade represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Cynthia Delaney sold 56,575 shares of Applied Optoelectronics stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $189.23, for a total transaction of $10,705,687.25. Following the completion of the sale, the director owned 59,647 shares in the company, valued at $11,287,001.81. The trade was a 48.68% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 506,215 shares of company stock valued at $87,409,447 in the last 90 days. 3.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of large investors have recently modified their holdings of the business. EFG International AG acquired a new position in Applied Optoelectronics during the second quarter valued at approximately $44,000. Persistent Asset Partners Ltd acquired a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $47,000. Fiduciary Financial Advisors acquired a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $48,000. Tema ETFs LLC bought a new stake in shares of Applied Optoelectronics during the 2nd quarter worth approximately $62,000. Finally, Allworth Financial LP bought a new stake in shares of Applied Optoelectronics during the 2nd quarter worth approximately $88,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

About Applied Optoelectronics

Applied Optoelectronics, Inc develops and manufactures high-speed fiber-optic networking products designed to support the growing bandwidth demands of data centers, telecommunications carriers and internet content providers. The company’s core offerings include pluggable optical transceiver modules, transponders and optical components that enable data transmission at rates ranging from 1G to 400G. These products are used to facilitate long-haul, metro and intra-data center connectivity, addressing the need for scalable, low-latency and energy-efficient solutions in modern network infrastructures.

The company’s product portfolio spans small-form factor pluggable modules such as SFP+, QSFP+ and QSFP28 units, as well as more advanced form factors like CFP2 and OSFP for ultra-high-speed applications.