Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped up before the market opened on Tuesday . The stock had previously closed at $111.88, but opened at $119.42. Applied Optoelectronics shares last traded at $118.8520, with a volume of 2,085,676 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Raymond James Financial reissued an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Rosenblatt Securities restated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research report on Monday, June 22nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Tuesday, July 7th. Finally, Wall Street Zen downgraded Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Monday, April 13th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Applied Optoelectronics presently has a consensus rating of “Hold” and a consensus price target of $113.80.

Applied Optoelectronics Stock Performance

The firm has a 50 day simple moving average of $163.96 and a 200-day simple moving average of $109.09. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.83 and a quick ratio of 3.03. The company has a market cap of $9.88 billion, a price-to-earnings ratio of -186.45 and a beta of 3.69.

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, analysts predict that Applied Optoelectronics, Inc. will post 0.6 EPS for the current fiscal year.

Insider Buying and Selling

In other Applied Optoelectronics news, insider Shu-Hua (Joshua) Yeh sold 39,154 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total transaction of $6,783,822.04. Following the completion of the transaction, the insider owned 462,430 shares of the company’s stock, valued at $80,120,621.80. This trade represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the sale, the insider owned 286,124 shares of the company’s stock, valued at approximately $48,812,754.40. This represents a 12.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 496,215 shares of company stock valued at $86,170,414 over the last three months. Company insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds have recently made changes to their positions in the stock. Geneos Wealth Management Inc. increased its holdings in Applied Optoelectronics by 1.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock valued at $1,529,000 after purchasing an additional 243 shares during the last quarter. Comerica Bank lifted its stake in Applied Optoelectronics by 27.6% during the fourth quarter. Comerica Bank now owns 1,386 shares of the semiconductor company’s stock worth $48,000 after purchasing an additional 300 shares in the last quarter. Tema ETFs LLC acquired a new position in Applied Optoelectronics during the second quarter worth $62,000. Silverleafe Capital Partners LLC boosted its position in shares of Applied Optoelectronics by 13.4% during the second quarter. Silverleafe Capital Partners LLC now owns 3,637 shares of the semiconductor company’s stock worth $539,000 after buying an additional 429 shares during the period. Finally, Police & Firemen s Retirement System of New Jersey boosted its position in shares of Applied Optoelectronics by 3.6% during the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 16,073 shares of the semiconductor company’s stock worth $560,000 after buying an additional 556 shares during the period. Hedge funds and other institutional investors own 61.70% of the company’s stock.

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.