Applied Optoelectronics, Inc. (NASDAQ:AAOI) Given Consensus Recommendation of “Hold” by Brokerages

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have received an average rating of “Hold” from the seven ratings firms that are presently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and three have given a buy recommendation to the company. The average 12 month target price among brokerages that have issued ratings on the stock in the last year is $79.80.

Several equities analysts recently weighed in on AAOI shares. Needham & Company LLC lifted their price target on Applied Optoelectronics from $43.00 to $80.00 and gave the company a “buy” rating in a research note on Friday, February 27th. Raymond James Financial restated an “outperform” rating and issued a $160.00 price target on shares of Applied Optoelectronics in a research note on Friday, May 8th. B. Riley Financial upgraded Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 price target for the company in a research note on Friday, February 27th. Wall Street Zen lowered Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Monday, April 13th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $50.00 price target on shares of Applied Optoelectronics in a research note on Thursday, February 19th.

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, insider Shu-Hua (Joshua) Yeh sold 50,000 shares of the business’s stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $97.10, for a total transaction of $4,855,000.00. Following the completion of the sale, the insider directly owned 322,051 shares in the company, valued at approximately $31,271,152.10. The trade was a 13.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin sold 58,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $173.26, for a total value of $10,049,080.00. Following the sale, the chief executive officer owned 2,255,693 shares of the company’s stock, valued at approximately $390,821,369.18. This trade represents a 2.51% 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 515,899 shares of company stock worth $69,774,638 over the last quarter. Company insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several large investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. increased its stake in Applied Optoelectronics by 1.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock worth $1,529,000 after buying an additional 243 shares in the last quarter. Comerica Bank increased its stake in Applied Optoelectronics by 27.6% during the 4th quarter. Comerica Bank now owns 1,386 shares of the semiconductor company’s stock worth $48,000 after buying an additional 300 shares in the last quarter. AlphaQuest LLC increased its stake in Applied Optoelectronics by 7.9% during the 3rd quarter. AlphaQuest LLC now owns 7,503 shares of the semiconductor company’s stock worth $195,000 after buying an additional 551 shares in the last quarter. Police & Firemen s Retirement System of New Jersey increased its stake in Applied Optoelectronics by 3.6% during the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 16,073 shares of the semiconductor company’s stock worth $560,000 after buying an additional 556 shares in the last quarter. Finally, Allworth Financial LP increased its stake in Applied Optoelectronics by 1,923.7% during the 4th quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock worth $27,000 after buying an additional 731 shares in the last quarter. 61.70% of the stock is currently owned by hedge funds and other institutional investors.

Applied Optoelectronics Price Performance

Shares of Applied Optoelectronics stock opened at $158.41 on Friday. The company has a quick ratio of 3.03, a current ratio of 3.83 and a debt-to-equity ratio of 0.18. Applied Optoelectronics has a twelve month low of $15.06 and a twelve month high of $233.67. The business has a 50-day moving average price of $146.55 and a 200 day moving average price of $80.74. The firm has a market cap of $12.71 billion, a PE ratio of -240.02 and a beta of 3.76.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The business had revenue of $151.14 million during the quarter, compared to analysts’ expectations of $156.98 million. During the same quarter in the prior year, the firm earned ($0.02) EPS. Applied Optoelectronics’s revenue for the quarter was up 51.3% on a year-over-year basis. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Sell-side analysts predict that Applied Optoelectronics will post 0.6 earnings per share for the current fiscal year.

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.