Analysts Set Applied Optoelectronics, Inc. (NASDAQ:AAOI) Target Price at $139.40

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have been given a consensus recommendation of “Hold” by the six research firms that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and three have given a buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $139.40.

A number of research analysts have weighed in on the company. Raymond James Financial restated an “outperform” rating and issued a $178.00 price target on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Needham & Company LLC dropped their target price on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a report on Friday, August 7th. Weiss Ratings lowered Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Rosenblatt Securities restated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Friday, August 7th.

Insider Buying and Selling at Applied Optoelectronics

In related news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the stock in a transaction on Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $9,825,270.00. Following the transaction, the chief executive officer directly owned 1,302,436 shares in the company, valued at $216,894,667.08. This trade represents a 4.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David C. Kuo sold 29,227 shares of Applied Optoelectronics stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $166.53, for a total value of $4,867,172.31. Following the transaction, the insider owned 149,078 shares of the company’s stock, valued at $24,825,959.34. This trade represents a 16.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 329,204 shares of company stock valued at $56,587,341 over the last three months. 3.80% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. EFG International AG bought a new position in Applied Optoelectronics in the 2nd quarter worth about $44,000. Persistent Asset Partners Ltd bought a new position in Applied Optoelectronics in the second quarter valued at $47,000. Fiduciary Financial Advisors bought a new position in shares of Applied Optoelectronics during the 2nd quarter valued at about $48,000. Tema ETFs LLC bought a new stake in shares of Applied Optoelectronics in the 2nd quarter worth approximately $62,000. Finally, Allworth Financial LP purchased a new stake in Applied Optoelectronics during the second quarter valued at about $88,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Trading Up 5.7%

AAOI stock opened at $129.10 on Friday. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. The company has a market cap of $10.92 billion, a P/E ratio of -165.51 and a beta of 3.76. The business has a fifty day moving average of $128.61 and a 200-day moving average of $124.85. Applied Optoelectronics has a twelve month low of $18.50 and a twelve month high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.04. The business had revenue of $191.92 million for the quarter, compared to analyst estimates of $190.48 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. Applied Optoelectronics’s quarterly revenue was up 86.3% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.16) EPS. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, equities research analysts expect that Applied Optoelectronics will post 0.55 EPS for the current year.

About Applied Optoelectronics

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.