Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 3.5% – Here’s Why

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) rose 3.5% during trading on Monday. The stock traded as high as $80.47 and last traded at $78.20. Approximately 11,326,262 shares traded hands during mid-day trading, an increase of 9% from the average session volume of 10,403,335 shares. The stock had previously closed at $75.57.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on AAOI. Weiss Ratings cut Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. 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. Raymond James Financial reaffirmed an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Finally, Needham & Company LLC lowered their target price on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Applied Optoelectronics currently has an average rating of “Hold” and a consensus target price of $147.00.

Applied Optoelectronics Price Performance

The stock has a market capitalization of $6.49 billion, a P/E ratio of -98.38 and a beta of 3.85. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The company has a fifty day simple moving average of $108.14 and a two-hundred day simple moving average of $133.12.

Applied Optoelectronics (NASDAQ:AAOI) last announced 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. 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 analyst estimates of $190.48 million. During the same period in the prior year, the business posted ($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. Sell-side analysts expect that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Activity at Applied Optoelectronics

In related news, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the transaction, 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 position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the transaction, the insider directly owned 371,498 shares in the company, valued at $44,590,904.94. The trade was a 1.59% 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. Insiders have sold 56,887 shares of company stock worth $6,581,484 in the last ninety days. Company insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several hedge funds have recently bought and sold shares of AAOI. BlackRock Inc. bought a new position in Applied Optoelectronics during the 2nd quarter worth about $955,672,000. William Blair Investment Management LLC acquired a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at about $74,703,000. Renaissance Technologies LLC bought a new stake in shares of Applied Optoelectronics in the first quarter valued at about $47,817,000. Bank of America Corp DE bought a new stake in shares of Applied Optoelectronics in the second quarter valued at about $33,712,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Applied Optoelectronics in the second quarter valued at about $32,567,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

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.