Applied Optoelectronics (NASDAQ:AAOI) Stock Price Target Lowered at Rosenblatt Securities

Applied Optoelectronics (NASDAQ:AAOI) had its price objective lowered by Rosenblatt Securities from $220.00 to $115.00 in a report issued on Friday, Benzinga reports. The firm currently has a “buy” rating on the semiconductor company’s stock. Rosenblatt Securities‘s price target points to a potential upside of 145.25% from the stock’s current price.

Other equities research analysts have also recently issued reports about the stock. B. Riley Financial decreased their price objective on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a research report on Thursday, October 15th. Raymond James Financial restated an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Weiss Ratings raised shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Needham & Company LLC cut their price target on shares of Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Optoelectronics has a consensus rating of “Moderate Buy” and an average price target of $121.00.

Applied Optoelectronics Stock Performance

NASDAQ:AAOI opened at $46.89 on Friday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. Applied Optoelectronics has a fifty-two week low of $18.50 and a fifty-two week high of $233.67. The company has a 50 day simple moving average of $94.22 and a two-hundred day simple moving average of $113.19. The company has a market capitalization of $3.97 billion, a PE ratio of -60.12 and a beta of 4.04.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.03. The firm had revenue of $269.88 million for the quarter, compared to the consensus estimate of $268.11 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company’s revenue for the quarter was up 127.5% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.09) EPS. Research analysts anticipate that Applied Optoelectronics will post 0.55 earnings per share for the current year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, insider Hung-Lun Chang sold 32,172 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the transaction, the insider directly owned 249,276 shares in the company, valued at approximately $27,472,707.96. This represents a 11.43% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Shu-Hua Yeh sold 6,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $147.73, for a total transaction of $886,380.00. Following the sale, the insider directly owned 377,498 shares of the company’s stock, valued at approximately $55,767,779.54. This trade represents a 1.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 52,172 shares of company stock valued at $5,985,036. 3.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in Applied Optoelectronics in the second quarter worth $955,672,000. William Blair Investment Management LLC acquired a new position in shares of Applied Optoelectronics during the second quarter valued at about $74,703,000. Renaissance Technologies LLC acquired a new position in shares of Applied Optoelectronics during the first quarter valued at about $47,817,000. Bank of America Corp DE acquired a new position in shares of Applied Optoelectronics during the second quarter valued at about $33,712,000. Finally, Bank of New York Mellon Corp bought a new position in shares of Applied Optoelectronics during the 2nd quarter worth about $32,567,000. 61.70% of the stock is owned by institutional investors.

Key Headlines Impacting Applied Optoelectronics

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: AAOI reported Q3 revenue of $269.9 million, up 127.5% year over year and slightly above analyst expectations. Adjusted earnings were $0.17 per share versus $0.14 expected; the company also said it recorded a sixth consecutive quarterly revenue record and returned to GAAP profitability. Applied Optoelectronics Reports Third Quarter 2026 Results
• Positive Sentiment: Datacenter sales more than tripled year over year, and next-quarter guidance points to another substantial increase, supporting the growth outlook tied to AI infrastructure demand. AOI Sales Up 127%, Gross Margin Stuck at 28%: Rapid Earnings Reaction
• Positive Sentiment: Northland sees 88% potential upside for AAOI, offering a bullish analyst view, though it is not a guarantee of future performance. Applied Optoelectronics Lost 17% in a Week. Northland Sees 88% Upside From Here
• Neutral Sentiment: The company granted inducement awards covering 1,346 shares to three new employees. The grants support hiring, but are small relative to the company’s share base. Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan
• Negative Sentiment: Gross margin remained around 28%, tempering the otherwise strong growth results. The company’s planned U.S. manufacturing expansion is also taking longer than expected because of power and construction issues. AOI Sales Up 127%, Gross Margin Stuck at 28%: Rapid Earnings Reaction
• Negative Sentiment: AAOI was caught in a broader selloff in AI optical stocks, with peers also falling despite strong earnings and outlooks. That sector-wide weakness appears to have outweighed the company’s Q3 beat in the near term. AI Optical Stocks Slide

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.