Applied Optoelectronics (NASDAQ:AAOI) Shares Down 6.4% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares dropped 6.4% on Wednesday. The stock traded as low as $120.60 and last traded at $121.8230. Approximately 2,011,705 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 10,192,755 shares. The stock had previously closed at $130.16.

Wall Street Analyst Weigh In

Several equities analysts have commented on AAOI shares. Raymond James Financial reiterated an “outperform” rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a report on Friday, August 7th. Rosenblatt Securities reiterated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research report on Friday, August 7th. Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings downgraded Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $139.40.

Applied Optoelectronics Trading Down 7.0%

The stock has a fifty day moving average of $112.57 and a 200-day moving average of $133.32. The company has a market cap of $10.24 billion, a PE ratio of -155.13 and a beta of 3.85. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78.

Applied Optoelectronics (NASDAQ:AAOI) last released its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.04. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%.The business had revenue of $191.92 million during the quarter, compared to the consensus estimate of $190.48 million. During the same period last year, the company earned ($0.16) earnings per share. The business’s revenue for the quarter was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. Sell-side analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other news, CFO Stefan Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $105.33, for a total transaction of $421,320.00. Following the completion of the sale, the chief financial officer owned 367,168 shares of the company’s stock, valued at approximately $38,673,805.44. The trade was a 1.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total value of $3,545,676.12. Following the completion of the transaction, the insider directly owned 249,276 shares in the company, valued at approximately $27,472,707.96. This trade represents a 11.43% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 52,172 shares of company stock valued at $6,092,409. 3.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Several institutional investors have recently made changes to their positions in AAOI. Polaris Financial Partners bought a new stake in shares of Applied Optoelectronics in the third quarter valued at about $26,000. EFG International AG purchased a new position in Applied Optoelectronics during the 2nd quarter valued at about $44,000. Persistent Asset Partners Ltd purchased a new position in Applied Optoelectronics during the 2nd quarter valued at about $47,000. Fiduciary Financial Advisors bought a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at about $48,000. Finally, Integrated Wealth Concepts LLC purchased a new stake in shares of Applied Optoelectronics in the 2nd quarter worth approximately $58,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.

The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.