Applied Optoelectronics (NASDAQ:AAOI) Reaches New 12-Month High – What’s Next?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) hit a new 52-week high during trading on Wednesday . The company traded as high as $41.96 and last traded at $40.64, with a volume of 9331694 shares trading hands. The stock had previously closed at $39.10.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on AAOI shares. Needham & Company LLC upped their target price on shares of Applied Optoelectronics from $38.00 to $43.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Rosenblatt Securities restated a “buy” rating and issued a $50.00 price objective on shares of Applied Optoelectronics in a research note on Friday, December 19th. Northland Securities set a $45.00 price objective on Applied Optoelectronics in a research report on Thursday, December 11th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Wednesday, October 8th. Finally, B. Riley reaffirmed a “sell” rating and set a $15.00 price target on shares of Applied Optoelectronics in a report on Monday, November 10th. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $35.60.

Applied Optoelectronics Trading Up 3.9%

The business has a fifty day moving average price of $29.04 and a 200-day moving average price of $26.55. The company has a quick ratio of 1.63, a current ratio of 2.31 and a debt-to-equity ratio of 0.23. The company has a market cap of $2.77 billion, a P/E ratio of -12.62 and a beta of 3.25.

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

Hedge Funds Weigh In On Applied Optoelectronics

Institutional investors and hedge funds have recently modified their holdings of the business. Nisa Investment Advisors LLC raised its stake in Applied Optoelectronics by 497.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company’s stock worth $25,000 after purchasing an additional 801 shares in the last quarter. Comerica Bank bought a new position in shares of Applied Optoelectronics during the third quarter worth approximately $28,000. GAMMA Investing LLC raised its position in shares of Applied Optoelectronics by 85.9% in the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company’s stock valued at $46,000 after buying an additional 825 shares in the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. bought a new stake in shares of Applied Optoelectronics in the second quarter valued at approximately $49,000. Finally, CWM LLC grew its position in Applied Optoelectronics by 175.5% during the second quarter. CWM LLC now owns 2,218 shares of the semiconductor company’s stock worth $57,000 after buying an additional 1,413 shares in the last quarter. 61.70% of the stock is currently owned by institutional investors and hedge funds.

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.