Applied Optoelectronics, Inc. (NASDAQ:AAOI) Receives $27.20 Average Price Target from Analysts

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have earned an average rating of “Hold” from the seven analysts that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have issued a buy recommendation on the company. The average 12-month price target among brokerages that have covered the stock in the last year is $27.20.

AAOI has been the subject of a number of research analyst reports. Raymond James Financial raised their target price on Applied Optoelectronics from $18.00 to $25.00 and gave the company an “outperform” rating in a report on Friday, August 8th. Wolfe Research assumed coverage on shares of Applied Optoelectronics in a research note on Tuesday, July 8th. They issued a “peer perform” rating for the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. Needham & Company LLC began coverage on shares of Applied Optoelectronics in a report on Friday, July 25th. They set a “buy” rating and a $32.00 target price on the stock. Finally, B. Riley reissued a “neutral” rating and issued a $15.00 price target (up previously from $13.00) on shares of Applied Optoelectronics in a research report on Friday, August 8th.

Applied Optoelectronics Stock Performance

Shares of AAOI stock opened at $34.14 on Friday. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.47 and a current ratio of 2.11. The firm has a market cap of $2.13 billion, a P/E ratio of -10.16 and a beta of 2.92. The firm’s 50 day moving average price is $26.85 and its 200-day moving average price is $21.96. Applied Optoelectronics has a one year low of $9.71 and a one year high of $44.50.

Applied Optoelectronics (NASDAQ:AAOI) last announced its earnings results on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The firm had revenue of $102.95 million during the quarter, compared to analysts’ expectations of $104.96 million. During the same period in the previous year, the firm earned ($0.28) EPS. The firm’s revenue for the quarter was up 137.9% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2025 guidance at -0.100–0.030 EPS. As a group, equities research analysts predict that Applied Optoelectronics will post -1.18 EPS for the current year.

Insider Transactions at Applied Optoelectronics

In related news, Director Min-Chu (Mike) Chen acquired 7,500 shares of the firm’s stock in a transaction dated Wednesday, August 13th. The stock was acquired at an average price of $22.91 per share, for a total transaction of $171,825.00. Following the purchase, the director owned 22,500 shares of the company’s stock, valued at $515,475. This represents a 50.00% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Chih-Hsiang (Thompson) Lin acquired 8,850 shares of the stock in a transaction dated Wednesday, August 13th. The shares were bought at an average cost of $22.53 per share, with a total value of $199,390.50. Following the completion of the transaction, the chief executive officer owned 1,652,165 shares of the company’s stock, valued at approximately $37,223,277.45. This represents a 0.54% increase in their position. The disclosure for this purchase can be found here. Insiders bought a total of 44,100 shares of company stock valued at $1,000,878 in the last 90 days. Insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Nisa Investment Advisors LLC raised its holdings in shares of Applied Optoelectronics by 497.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 801 shares in the last quarter. AlphaQuest LLC increased its holdings in Applied Optoelectronics by 243.9% in the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company’s stock valued at $35,000 after buying an additional 1,629 shares during the last quarter. GAMMA Investing LLC increased its holdings in 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 during the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in Applied Optoelectronics in the second quarter valued at $49,000. Finally, CWM LLC lifted its holdings in Applied Optoelectronics by 175.5% during the 2nd quarter. CWM LLC now owns 2,218 shares of the semiconductor company’s stock worth $57,000 after buying an additional 1,413 shares during the last quarter. Institutional investors and hedge funds own 61.72% of the company’s stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.