Applied Optoelectronics, Inc. (NASDAQ:AAOI) Given Average Rating of “Hold” by Analysts

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has been assigned a consensus recommendation of “Hold” from the seven brokerages that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating on the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $113.80.

Several brokerages recently issued reports on AAOI. Northland Securities restated a “market perform” rating and issued a $55.00 target price on shares of Applied Optoelectronics in a report on Friday, February 27th. Rosenblatt Securities reiterated a “buy” rating and set a $220.00 price target on shares of Applied Optoelectronics in a research note on Monday. Needham & Company LLC lifted their price target on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the stock a “buy” rating in a research note on Friday, February 27th. Raymond James Financial reiterated an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Finally, Wall Street Zen cut shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Monday, April 13th.

Applied Optoelectronics Trading Down 0.3%

Shares of AAOI stock opened at $146.97 on Thursday. Applied Optoelectronics has a 12-month low of $18.50 and a 12-month high of $233.67. The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18. The firm’s 50 day moving average is $170.14 and its 200 day moving average is $100.32. The stock has a market capitalization of $11.79 billion, a P/E ratio of -222.68 and a beta of 3.66.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Applied Optoelectronics had a negative return on equity of 4.64% and a negative net margin of 8.55%.The company 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 business posted ($0.02) EPS. The company’s revenue for the quarter was up 51.3% compared to the same quarter last year. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Research analysts expect that Applied Optoelectronics will post 0.6 earnings per share for the current year.

Insider Buying and Selling at Applied Optoelectronics

In other news, insider Shu-Hua (Joshua) Yeh sold 39,154 shares of Applied Optoelectronics stock in a transaction on Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total transaction of $6,783,822.04. Following the transaction, the insider owned 462,430 shares in the company, valued at $80,120,621.80. This trade represents a 7.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the transaction, the insider owned 286,124 shares in the company, valued at $48,812,754.40. This represents a 12.35% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 500,215 shares of company stock worth $86,716,414. Insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Allworth Financial LP boosted its stake in shares of 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 acquiring an additional 731 shares during the last quarter. Comerica Bank purchased a new position in shares of Applied Optoelectronics during the 3rd quarter worth $28,000. Northwestern Mutual Wealth Management Co. boosted its stake 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 worth $42,000 after acquiring an additional 750 shares during the last quarter. Kohmann Bosshard Financial Services LLC purchased a new position in shares of Applied Optoelectronics during the 4th quarter worth $55,000. Finally, Headlands Technologies LLC bought a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at $57,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

About Applied Optoelectronics

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.