Applied Optoelectronics (NASDAQ:AAOI) Trading 5.5% Higher – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price was up 5.5% on Tuesday . The stock traded as high as $115.08 and last traded at $113.5640. Approximately 1,984,950 shares changed hands during trading, a decline of 82% from the average daily volume of 10,755,803 shares. The stock had previously closed at $107.63.

Wall Street Analyst Weigh In

A number of brokerages recently commented on AAOI. Rosenblatt Securities restated a “buy” rating and issued a $220.00 target price on shares of Applied Optoelectronics in a research note on Friday, August 7th. B. Riley Financial reissued a “neutral” rating on shares of Applied Optoelectronics in a report on Friday, August 7th. Weiss Ratings cut shares of Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, August 17th. Needham & Company LLC reduced their price objective on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a report on Friday, August 7th. Finally, Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Three research 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. Based on data from MarketBeat, Applied Optoelectronics presently has a consensus rating of “Hold” and an average target price of $139.40.

Applied Optoelectronics Stock Up 0.5%

The firm has a fifty day moving average price of $123.82 and a 200 day moving average price of $126.90. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. The company has a market cap of $9.62 billion, a P/E ratio of -145.85 and a beta of 3.76.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.04. The firm had revenue of $191.92 million during the quarter, compared to analysts’ expectations of $190.48 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 86.3% compared to the same quarter last year. During the same quarter last year, the company posted ($0.16) EPS. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. Equities research analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Insider Buying and Selling at Applied Optoelectronics

In related news, insider Hung-Lun (Fred) Chang sold 40,329 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total value of $6,880,127.40. Following the transaction, the insider owned 286,124 shares in the company, valued at $48,812,754.40. This trade represents a 12.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of Applied Optoelectronics stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $9,825,270.00. Following the completion of the sale, the chief executive officer owned 1,302,436 shares of the company’s stock, valued at approximately $216,894,667.08. The trade was a 4.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 272,629 shares of company stock valued at $45,881,654 over the last ninety days. Company insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several institutional investors have recently modified their holdings of AAOI. Allworth Financial LP lifted its holdings in Applied Optoelectronics by 1,923.7% in the fourth quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 731 shares during the period. Comerica Bank acquired a new stake in Applied Optoelectronics during the 3rd quarter worth $28,000. Northwestern Mutual Wealth Management Co. raised its position in shares of Applied Optoelectronics by 166.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock valued at $42,000 after acquiring an additional 750 shares during the last quarter. EFG International AG bought a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at $44,000. Finally, Persistent Asset Partners Ltd bought a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at $47,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

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.