Applied Optoelectronics (NASDAQ:AAOI) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Applied Optoelectronics (NASDAQ:AAOI) released its quarterly earnings data on Thursday. The semiconductor company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.01, FiscalAI reports. Applied Optoelectronics had a negative return on equity of 8.70% and a negative net margin of 36.97%.The business had revenue of $118.63 million for the quarter, compared to analyst estimates of $119.77 million. During the same period last year, the firm posted ($0.21) earnings per share. Applied Optoelectronics’s revenue was up 82.1% compared to the same quarter last year. Applied Optoelectronics updated its Q4 2025 guidance to -0.130–0.040 EPS.

Applied Optoelectronics Stock Performance

NASDAQ AAOI opened at $28.57 on Friday. The company has a market capitalization of $1.78 billion, a price-to-earnings ratio of -8.87 and a beta of 2.88. The company has a quick ratio of 1.47, a current ratio of 2.11 and a debt-to-equity ratio of 0.36. Applied Optoelectronics has a twelve month low of $9.71 and a twelve month high of $44.50. The stock has a fifty day simple moving average of $29.44 and a 200 day simple moving average of $23.98.

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, insider Hung-Lun (Fred) Chang sold 15,784 shares of the company’s stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $22.70, for a total value of $358,296.80. Following the sale, the insider owned 256,326 shares in the company, valued at approximately $5,818,600.20. The trade was a 5.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Stefan J. Murry sold 12,000 shares of the firm’s stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $22.37, for a total value of $268,440.00. Following the transaction, the chief financial officer owned 298,477 shares of the company’s stock, valued at $6,676,930.49. This trade represents a 3.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have purchased 44,100 shares of company stock worth $1,000,878. 4.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AAOI. Headlands Technologies LLC bought a new position in shares of Applied Optoelectronics in the 2nd quarter worth $57,000. Tower Research Capital LLC TRC raised its holdings in Applied Optoelectronics by 244.0% during the second quarter. Tower Research Capital LLC TRC now owns 6,832 shares of the semiconductor company’s stock worth $176,000 after buying an additional 4,846 shares during the last quarter. Envestnet Asset Management Inc. acquired a new position in Applied Optoelectronics during the third quarter worth $235,000. Cetera Investment Advisers bought a new position in shares of Applied Optoelectronics in the second quarter valued at $377,000. Finally, New York State Common Retirement Fund grew its holdings in shares of Applied Optoelectronics by 36.0% during the second quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock valued at $437,000 after buying an additional 4,500 shares during the last quarter. Institutional investors and hedge funds own 61.72% of the company’s stock.

Analysts Set New Price Targets

AAOI has been the subject of a number of research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Wednesday, October 8th. Northland Securities set a $30.00 price objective on shares of Applied Optoelectronics in a research note on Friday, August 8th. B. Riley reiterated a “neutral” rating and set a $15.00 price target (up from $13.00) on shares of Applied Optoelectronics in a report on Friday, August 8th. Needham & Company LLC assumed coverage on Applied Optoelectronics in a research note on Friday, July 25th. They issued a “buy” rating and a $32.00 price target for the company. Finally, Wall Street Zen lowered Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Saturday, August 9th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and a consensus price target of $27.20.

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.