Applied Optoelectronics, Inc. (NASDAQ:AAOI) Stock Has Average Price Target of $143.00 According to Analysts

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have been given a consensus recommendation of “Moderate Buy” by the six analysts that are covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating on the company. The average twelve-month price target among brokers that have issued a report on the stock in the last year is $156.00.

Several brokerages have recently commented on AAOI. Raymond James Financial restated an “outperform” rating and set a $178.00 price target on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Northland Securities upgraded shares of Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 price objective for the company in a report on Monday. Needham & Company LLC lowered their target price on shares of Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating on the stock in a research report on Tuesday, October 27th. Finally, B. Riley Financial cut their target price on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a report on Thursday, October 15th.

Trending Headlines about Applied Optoelectronics

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: Northland Securities upgraded AAOI from “market perform” to “outperform” and set a $120 price target, a bullish signal ahead of earnings. Northland Securities upgrade
• Positive Sentiment: Pre-earnings coverage points to strong AI-infrastructure demand and expanding capacity as potential growth drivers. A separate preview highlights the company’s growth outlook going into the report. Zacks Q3 earnings outlook Seeking Alpha earnings preview
• Positive Sentiment: AAOI participated in a rebound among optical-networking stocks, suggesting sector-wide buying helped sentiment. Optical stocks rebound
• Neutral Sentiment: Investors are focused on the upcoming Q3 results for evidence that demand and capacity expansion are translating into execution and growth. Investor attention ahead of earnings
• Negative Sentiment: Coverage flags supply constraints and valuation as risks. AAOI has also fallen sharply since June, leaving the shares vulnerable if results or outlook disappoint. Risks ahead of Q3 earnings Valuation and outlook discussion

Applied Optoelectronics Trading Up 2.4%

NASDAQ:AAOI opened at $63.97 on Wednesday. The company has a market capitalization of $5.41 billion, a P/E ratio of -82.01 and a beta of 4.04. The stock’s 50 day moving average price is $96.64 and its 200 day moving average price is $113.03. 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 has a 52 week low of $18.50 and a 52 week high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last posted 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 firm had revenue of $191.92 million during the quarter, compared to analysts’ expectations of $190.48 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company’s revenue was up 86.3% compared to the same quarter last year. During the same period in the previous 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, research analysts forecast that Applied Optoelectronics will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other news, insider Hung-Lun Chang sold 32,172 shares of the company’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the sale, the insider owned 249,276 shares in the company, valued at approximately $27,472,707.96. This represents a 11.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Stefan Murry sold 4,000 shares of the stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the transaction, the chief financial officer directly owned 363,168 shares in the company, valued at approximately $37,359,092.16. This represents a 1.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 52,172 shares of company stock worth $5,985,036. 3.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of large investors have recently added to or reduced their stakes in the stock. California State Teachers Retirement System boosted its holdings in Applied Optoelectronics by 23.2% during the first quarter. California State Teachers Retirement System now owns 70,464 shares of the semiconductor company’s stock valued at $5,961,000 after acquiring an additional 13,265 shares during the period. Handelsbanken Fonder AB acquired a new stake in shares of Applied Optoelectronics in the second quarter valued at about $7,719,000. BlackRock Inc. acquired a new position in shares of Applied Optoelectronics during the 2nd quarter worth about $955,672,000. Capstone Capital Management Ltd bought a new stake in Applied Optoelectronics during the 3rd quarter valued at approximately $2,101,000. Finally, Bank of America Corp DE acquired a new stake in Applied Optoelectronics in the 2nd quarter valued at approximately $33,712,000. Institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

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.