Applied Optoelectronics (NASDAQ:AAOI) Shares Up 10.8% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares shot up 10.8% during trading on Monday . The stock traded as high as $22.90 and last traded at $22.8050. 2,888,644 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 4,697,981 shares. The stock had previously closed at $20.58.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AAOI. Wall Street Zen downgraded Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Saturday, August 9th. Northland Securities raised their price objective on Applied Optoelectronics from $30.00 to $35.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. B. Riley reiterated a “sell” rating and issued a $15.00 target price on shares of Applied Optoelectronics in a report on Monday, November 10th. Finally, Raymond James Financial boosted their price target on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the company an “outperform” rating in a research note on Friday, August 8th. Four investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Applied Optoelectronics has an average rating of “Hold” and an average target price of $28.20.

Applied Optoelectronics Stock Up 12.5%

The company has a market cap of $1.75 billion, a P/E ratio of -7.94 and a beta of 2.88. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63. The stock has a fifty day moving average price of $28.61 and a two-hundred day moving average price of $24.85.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings data on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.01. The business had revenue of $118.63 million for the quarter, compared to analysts’ expectations of $119.77 million. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%.The business’s revenue was up 82.1% on a year-over-year basis. During the same period last year, the business earned ($0.21) EPS. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. On average, research analysts expect that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Institutional Investors Weigh In On Applied Optoelectronics

Institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp lifted its position in shares of Applied Optoelectronics by 3.5% during the 1st quarter. Bank of New York Mellon Corp now owns 129,490 shares of the semiconductor company’s stock worth $1,988,000 after buying an additional 4,359 shares in the last quarter. Blueshift Asset Management LLC bought a new position in shares of Applied Optoelectronics in the first quarter valued at approximately $291,000. Vanguard Group Inc. increased its position in shares of Applied Optoelectronics by 14.4% during the first quarter. Vanguard Group Inc. now owns 2,779,563 shares of the semiconductor company’s stock valued at $42,666,000 after acquiring an additional 350,145 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in Applied Optoelectronics by 5.2% during the first quarter. Charles Schwab Investment Management Inc. now owns 124,432 shares of the semiconductor company’s stock worth $1,910,000 after acquiring an additional 6,183 shares during the period. Finally, Swiss National Bank boosted its position in Applied Optoelectronics by 15.4% in the first quarter. Swiss National Bank now owns 88,200 shares of the semiconductor company’s stock worth $1,354,000 after purchasing an additional 11,800 shares during the last quarter. 61.72% of the stock is owned by institutional investors.

About Applied Optoelectronics

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.