Applied Optoelectronics (NASDAQ:AAOI) Trading Up 7.9% – What’s Next?

by · The Cerbat Gem

Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report)’s share price was up 7.9% during mid-day trading on Thursday . The stock traded as high as $175.07 and last traded at $178.3210. Approximately 1,716,336 shares changed hands during trading, a decline of 82% from the average daily volume of 9,773,253 shares. The stock had previously closed at $165.26.

Analyst Ratings Changes

AAOI has been the subject of several recent analyst reports. Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Monday, April 13th. Needham & Company LLC raised their price objective on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the stock a “buy” rating in a research report on Friday, February 27th. Rosenblatt Securities reaffirmed a “buy” rating and set a $50.00 price objective on shares of Applied Optoelectronics in a research report on Thursday, February 19th. B. Riley Financial raised shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 price objective for the company in a research report on Friday, February 27th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and a consensus target price of $79.80.

Read Our Latest Analysis on AAOI

Applied Optoelectronics Trading Up 6.0%

The company has a market cap of $14.05 billion, a price-to-earnings ratio of -265.22 and a beta of 3.76. 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 price is $136.52 and its 200 day moving average price is $74.00.

Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last posted its quarterly 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 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 analyst estimates of $156.98 million. During the same period in the previous year, the business posted ($0.02) EPS. The business’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. As a group, equities analysts expect that Applied Optoelectronics, Inc. will post 0.66 EPS for the current year.

Insiders Place Their Bets

In related 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 value of $6,783,822.04. Following the completion of the sale, the insider owned 462,430 shares of the company’s stock, valued at approximately $80,120,621.80. This trade represents a 7.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Chih-Hsiang (Thompson) Lin sold 58,000 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 $10,049,080.00. Following the completion of the sale, the chief executive officer directly owned 2,255,693 shares of the company’s stock, valued at approximately $390,821,369.18. The trade was a 2.51% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 459,324 shares of company stock worth $59,068,951 in the last quarter. Insiders own 3.80% of the company’s stock.

Institutional Trading of Applied Optoelectronics

Several hedge funds have recently bought and sold shares of the business. Janus Henderson Group PLC grew its position in Applied Optoelectronics by 23.2% in the 1st quarter. Janus Henderson Group PLC now owns 29,755 shares of the semiconductor company’s stock valued at $2,518,000 after purchasing an additional 5,600 shares during the period. California State Teachers Retirement System boosted its holdings in Applied Optoelectronics by 23.2% during the 1st quarter. California State Teachers Retirement System now owns 70,464 shares of the semiconductor company’s stock worth $5,961,000 after acquiring an additional 13,265 shares during the last quarter. Royal Bank of Canada boosted its holdings in Applied Optoelectronics by 2,075.3% during the 1st quarter. Royal Bank of Canada now owns 127,971 shares of the semiconductor company’s stock worth $10,825,000 after acquiring an additional 122,088 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Applied Optoelectronics by 3.7% during the 1st quarter. The Manufacturers Life Insurance Company now owns 32,125 shares of the semiconductor company’s stock worth $2,717,000 after acquiring an additional 1,148 shares during the last quarter. Finally, Maverick Capital Ltd. purchased a new position in Applied Optoelectronics during the 1st quarter worth $1,370,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

About Applied Optoelectronics

(Get Free Report)

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.

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