Brokerages Set Applied Optoelectronics, Inc. (NASDAQ:AAOI) PT at $113.80

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has received an average recommendation of “Hold” from the six brokerages that are currently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, two have issued a hold rating and three have given a buy rating to the company. The average twelve-month target price among analysts that have issued a report on the stock in the last year is $141.80.

Several analysts recently issued reports on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Tuesday, July 7th. Raymond James Financial reaffirmed an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Wall Street Zen cut shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Monday, April 13th. Needham & Company LLC reduced their price target on shares of Applied Optoelectronics from $260.00 to $220.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Rosenblatt Securities restated a “buy” rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a report on Monday, June 22nd.

Applied Optoelectronics Price Performance

AAOI stock opened at $110.52 on Monday. The business has a fifty day moving average of $154.12 and a two-hundred day moving average of $112.68. The company has a quick ratio of 3.03, a current ratio of 3.83 and a debt-to-equity ratio of 0.18. The stock has a market cap of $8.87 billion, a price-to-earnings ratio of -167.45 and a beta of 3.69. Applied Optoelectronics has a 52-week low of $18.50 and a 52-week high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.02). The business had revenue of $151.14 million during the quarter, compared to analyst estimates of $156.98 million. Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The business’s revenue for the quarter was up 51.3% on a year-over-year basis. During the same period last year, the company earned ($0.02) EPS. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. As a group, research analysts anticipate that Applied Optoelectronics will post 0.6 earnings per share for the current year.

Insider Transactions at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 4,000 shares of the firm’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $122.09, for a total transaction of $488,360.00. Following the completion of the transaction, the chief financial officer directly owned 380,576 shares in the company, valued at $46,464,523.84. This trade represents a 1.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David C. Kuo sold 29,227 shares of Applied Optoelectronics stock in a transaction on Friday, June 12th. The shares were sold at an average price of $166.53, for a total value of $4,867,172.31. Following the completion of the sale, the insider directly owned 149,078 shares of the company’s stock, valued at $24,825,959.34. The trade was a 16.39% decrease in their ownership of the stock. 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 500,215 shares of company stock worth $86,658,774 in the last three months. Company insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in Applied Optoelectronics by 7.7% in the 4th quarter. Vanguard Group Inc. now owns 4,982,660 shares of the semiconductor company’s stock valued at $173,696,000 after acquiring an additional 358,090 shares in the last quarter. Invesco Ltd. lifted its position in shares of Applied Optoelectronics by 5,208.9% during the fourth quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock worth $122,439,000 after purchasing an additional 3,446,150 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its position in shares of Applied Optoelectronics by 5,321.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock worth $77,730,000 after purchasing an additional 2,188,630 shares in the last quarter. Hawk Ridge Capital Management LP boosted its stake in shares of Applied Optoelectronics by 106.2% in the fourth quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock valued at $59,293,000 after purchasing an additional 875,903 shares during the period. Finally, Morgan Stanley boosted its stake in shares of Applied Optoelectronics by 157.1% in the fourth quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock valued at $59,257,000 after purchasing an additional 1,038,775 shares during the period. 61.70% of the stock is currently owned by hedge funds and other institutional investors.

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.