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

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have been given an average rating of “Hold” by the six analysts that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and three have issued a buy rating on the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $113.80.

Several brokerages have weighed in on AAOI. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Tuesday, July 7th. Raymond James Financial restated an “outperform” rating on shares of Applied Optoelectronics in a report on Wednesday, June 10th. Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Monday, June 22nd. Finally, Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th.

Applied Optoelectronics Price Performance

NASDAQ:AAOI opened at $102.41 on Monday. Applied Optoelectronics has a 52 week low of $18.50 and a 52 week high of $233.67. The stock’s fifty day moving average is $159.39 and its two-hundred day moving average is $111.08. The company has a market capitalization of $8.22 billion, a P/E ratio of -155.17 and a beta of 3.69. 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 (NASDAQ:AAOI) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.02). The business had revenue of $151.14 million for the quarter, compared to analysts’ expectations of $156.98 million. Applied Optoelectronics had a negative return on equity of 4.64% and a negative net margin of 8.55%.The business’s revenue for the quarter was up 51.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.02) earnings per share. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Equities analysts expect that Applied Optoelectronics will post 0.6 EPS for the current year.

Insider Buying and Selling at Applied Optoelectronics

In related news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the business’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $9,825,270.00. Following the sale, the chief executive officer owned 1,302,436 shares in the company, valued at approximately $216,894,667.08. The trade was a 4.33% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Shu-Hua (Joshua) Yeh sold 39,154 shares of the stock in a transaction dated Tuesday, May 19th. The stock was sold at an average price of $173.26, for a total value of $6,783,822.04. Following the transaction, the insider directly owned 462,430 shares in the company, valued at approximately $80,120,621.80. The trade was a 7.81% decrease in their position. 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. Over the last 90 days, insiders sold 500,215 shares of company stock valued at $86,658,774. Corporate insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in Applied Optoelectronics by 7.7% in the 4th quarter. Vanguard Group Inc. now owns 4,982,660 shares of the semiconductor company’s stock valued at $173,696,000 after acquiring an additional 358,090 shares in the last quarter. Invesco Ltd. lifted its position in shares of Applied Optoelectronics by 5,208.9% during the fourth quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock worth $122,439,000 after purchasing an additional 3,446,150 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Applied Optoelectronics by 5,321.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock worth $77,730,000 after purchasing an additional 2,188,630 shares in the last quarter. Hawk Ridge Capital Management LP boosted its stake in shares of Applied Optoelectronics by 106.2% in the fourth quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock valued at $59,293,000 after purchasing an additional 875,903 shares during the period. Finally, Morgan Stanley boosted its stake in shares of Applied Optoelectronics by 157.1% in the fourth quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock valued at $59,257,000 after purchasing an additional 1,038,775 shares during the period. 61.70% of the stock is currently owned by hedge funds and other institutional investors.

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.