Applied Optoelectronics, Inc. (NASDAQ:AAOI) Stock Rated “Hold” by Sell-Side Brokerages

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has been assigned a consensus rating of “Hold” from the six analysts that are currently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and three have assigned a buy rating to the company. The average 12-month target price among brokers that have covered the stock in the last year is $139.40.

AAOI has been the topic of a number of recent analyst reports. Needham & Company LLC reduced their price target on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a research report on Friday, August 7th. Rosenblatt Securities reiterated a “buy” rating and issued a $220.00 target price on shares of Applied Optoelectronics in a research note on Friday, August 7th. Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Weiss Ratings downgraded Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th.

Insider Activity

In other news, insider Hung-Lun Chang sold 32,172 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the transaction, the insider owned 249,276 shares of the company’s stock, valued at $27,472,707.96. This represents a 11.43% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Stefan Murry sold 4,000 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $105.33, for a total transaction of $421,320.00. Following the transaction, the chief financial officer owned 367,168 shares in the company, valued at approximately $38,673,805.44. The trade was a 1.08% 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 sold a total of 54,172 shares of company stock valued at $6,324,229 in the last 90 days. 3.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of large investors have recently bought and sold shares of the stock. California State Teachers Retirement System lifted its holdings in shares of Applied Optoelectronics by 23.2% during the 1st quarter. California State Teachers Retirement System now owns 70,464 shares of the semiconductor company’s stock valued at $5,961,000 after acquiring an additional 13,265 shares in the last quarter. Handelsbanken Fonder AB acquired a new stake in Applied Optoelectronics in the 2nd quarter valued at $7,719,000. BlackRock Inc. purchased a new position in Applied Optoelectronics in the second quarter valued at about $955,672,000. Bank of America Corp DE purchased a new position in Applied Optoelectronics in the second quarter valued at about $33,712,000. Finally, Quantitative Investment Management LLC acquired a new position in shares of Applied Optoelectronics during the second quarter worth about $1,474,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

More Applied Optoelectronics News

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

• Positive Sentiment: Optical stocks rallied after Lumentum indicated that optical capacity is effectively sold out through early 2029. The signal reinforced expectations that AI data-center demand for high-speed fiber-optic components will remain strong, benefiting Applied Optoelectronics. Optics Stocks Rally on Sold-Out Optical Capacity Through Early 2029
• Positive Sentiment: One Wall Street analyst reportedly believes AAOI could potentially double after losing more than half its value from its peak. The bullish view points to the company’s exposure to AI-driven optical networking and a possible recovery from recent financing and supply-chain pressures. Analyst Expects Applied Optoelectronics Could Double
• Positive Sentiment: A valuation analysis argues that Applied Optoelectronics may be trading below fair value following its equity offering, suggesting that the financing-related selloff could have created upside if operating growth continues. AAOI Stock May Be Below Fair Value After Equity Offering
• Positive Sentiment: The company’s latest reported quarter showed strong momentum: revenue rose 86.3% year over year to $191.92 million and earnings exceeded consensus estimates. Management’s third-quarter EPS guidance of $0.11 to $0.26 also supports the recovery narrative.

Applied Optoelectronics Stock Performance

Shares of NASDAQ AAOI opened at $109.64 on Friday. The company has a 50-day simple moving average of $114.11 and a 200-day simple moving average of $133.43. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13. The company has a market cap of $9.27 billion, a PE ratio of -140.56 and a beta of 3.85. Applied Optoelectronics has a 12 month low of $18.50 and a 12 month high of $233.67.

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

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.

The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.