Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Down – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price gapped down before the market opened on Monday . The stock had previously closed at $105.36, but opened at $96.77. Applied Optoelectronics shares last traded at $98.6770, with a volume of 1,814,360 shares.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the stock. Raymond James Financial reiterated an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a research note on Friday, August 7th. Wall Street Zen upgraded shares of 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 shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a report on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $139.40.

Applied Optoelectronics Stock Performance

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’s 50-day moving average price is $113.49 and its two-hundred day moving average price is $132.45. The stock has a market cap of $8.06 billion, a price-to-earnings ratio of -122.17 and a beta of 3.79.

Applied Optoelectronics (NASDAQ:AAOI) last released 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. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The firm had revenue of $191.92 million during the quarter, compared to analysts’ expectations of $190.48 million. During the same period last year, the business earned ($0.16) earnings per share. Applied Optoelectronics’s revenue was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. On average, analysts expect that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, insider Hung-Lun Chang sold 32,172 shares of the firm’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the sale, the insider owned 249,276 shares of the company’s stock, valued at $27,472,707.96. This trade represents a 11.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $147.73, for a total value of $886,380.00. Following the completion of the sale, the insider owned 377,498 shares in the company, valued at $55,767,779.54. This represents a 1.56% decrease in their position. 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. Insiders sold 58,172 shares of company stock worth $7,123,749 in the last 90 days. Insiders own 3.80% of the company’s stock.

Institutional Trading of Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. acquired a new position in Applied Optoelectronics in the second quarter valued at about $955,672,000. William Blair Investment Management LLC acquired a new stake in shares of Applied Optoelectronics during the second quarter valued at about $74,703,000. Renaissance Technologies LLC purchased a new stake in shares of Applied Optoelectronics in the 1st quarter valued at approximately $47,817,000. Bank of America Corp DE purchased a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at approximately $33,712,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $32,567,000. 61.70% of the stock is owned by institutional investors and hedge funds.

About Applied Optoelectronics

Applied Optoelectronics, Inc develops and manufactures fiber-optic networking products and components. Its offerings include optical transceivers, transponders, modules and related equipment used to transmit data over fiber-optic networks.

The company serves several communications markets, including data centers, telecommunications, broadband access and cable television. Its products support applications such as high-speed data transmission, cloud computing, network infrastructure and fiber-based broadband services.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics serves customers in North America, Asia and other international markets.