Applied Optoelectronics (NASDAQ:AAOI) Stock Price Expected to Rise, Needham & Company LLC Analyst Says

Applied Optoelectronics (NASDAQ:AAOI) had its price target lifted by equities researchers at Needham & Company LLC from $38.00 to $43.00 in a report released on Thursday, MarketBeat Ratings reports. The brokerage presently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s price objective indicates a potential upside of 34.12% from the company’s current price.

Several other equities analysts have also weighed in on the company. Rosenblatt Securities raised their target price on Applied Optoelectronics from $35.00 to $50.00 and gave the company a “buy” rating in a report on Thursday. Northland Securities raised their price objective on Applied Optoelectronics from $30.00 to $35.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. B. Riley reaffirmed a “sell” rating and set a $15.00 target price on shares of Applied Optoelectronics in a research report on Monday, November 10th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $35.60.

Applied Optoelectronics Trading Down 11.7%

NASDAQ:AAOI opened at $32.06 on Thursday. The company has a market capitalization of $2.19 billion, a P/E ratio of -9.96 and a beta of 3.25. The stock’s 50 day moving average price is $28.80 and its 200 day moving average price is $25.66. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 2.31. Applied Optoelectronics has a 52 week low of $9.71 and a 52 week high of $41.27.

Applied Optoelectronics (NASDAQ:AAOI) last posted its earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) EPS for the quarter, topping the consensus estimate of ($0.10) by $0.01. The company had revenue of $118.63 million during the quarter, compared to the consensus estimate of $119.77 million. Applied Optoelectronics had a negative net margin of 36.97% and a negative return on equity of 7.34%. The company’s revenue for the quarter was up 82.1% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.21) earnings per share. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. On average, research analysts forecast that Applied Optoelectronics will post -1.18 EPS for the current fiscal year.

Institutional Investors Weigh In On Applied Optoelectronics

Several hedge funds have recently made changes to their positions in AAOI. AlphaQuest LLC boosted its stake in shares of Applied Optoelectronics by 7.9% in the 3rd quarter. AlphaQuest LLC now owns 7,503 shares of the semiconductor company’s stock valued at $195,000 after purchasing an additional 551 shares in the last quarter. Rhumbline Advisers boosted its position in Applied Optoelectronics by 1.1% in the first quarter. Rhumbline Advisers now owns 61,017 shares of the semiconductor company’s stock valued at $937,000 after buying an additional 669 shares in the last quarter. Nisa Investment Advisors LLC grew its stake in Applied Optoelectronics by 497.5% during the second quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company’s stock worth $25,000 after buying an additional 801 shares during the last quarter. GAMMA Investing LLC grew its stake in Applied Optoelectronics by 85.9% during the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company’s stock worth $46,000 after buying an additional 825 shares during the last quarter. Finally, Corebridge Financial Inc. increased its holdings in shares of Applied Optoelectronics by 4.2% during the first quarter. Corebridge Financial Inc. now owns 21,096 shares of the semiconductor company’s stock worth $324,000 after buying an additional 843 shares in the last quarter. Institutional investors own 61.72% of the company’s stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.