Applied Optoelectronics (NASDAQ:AAOI) Shares Up 7% – Here’s What Happened

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded up 7% on Monday. The stock traded as high as $71.99 and last traded at $72.25. Approximately 3,782,236 shares traded hands during trading, a decline of 63% from the average session volume of 10,361,657 shares. The stock had previously closed at $67.51.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on AAOI shares. Weiss Ratings upgraded Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday. B. Riley Financial reduced their target price on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a report on Thursday, October 15th. Needham & Company LLC decreased their price target on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Raymond James Financial reissued an “outperform” rating and issued a $178.00 price target on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Finally, Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Three research 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. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $147.00.

Applied Optoelectronics Stock Performance

The firm’s 50-day simple moving average is $104.03 and its two-hundred day simple moving average is $132.40. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $6.26 billion, a PE ratio of -94.43 and a beta of 3.85.

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

Insider Buying and Selling

In other Applied Optoelectronics news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the transaction, the insider owned 371,498 shares of the company’s stock, valued at $44,590,904.94. The trade was a 1.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were 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 owned 249,276 shares in the company, valued at $27,472,707.96. This represents a 11.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 56,887 shares of company stock valued at $6,581,484. Corporate insiders own 3.80% of the company’s stock.

Institutional Trading of Applied Optoelectronics

A number of hedge funds have recently made changes to their positions in AAOI. BlackRock Inc. bought a new stake in Applied Optoelectronics in the second quarter valued at approximately $955,672,000. Renaissance Technologies LLC acquired a new stake in Applied Optoelectronics in the first quarter worth $47,817,000. William Blair Investment Management LLC bought a new position in shares of Applied Optoelectronics during the second quarter worth $74,703,000. Bank of America Corp DE bought a new position in shares of Applied Optoelectronics during the second quarter worth $33,712,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Applied Optoelectronics during the second quarter worth $32,567,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.