Applied Optoelectronics (NASDAQ:AAOI) Stock Falls 2.9% – Here’s What Happened

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price fell 2.9% during trading on Tuesday. The company traded as low as $95.08 and last traded at $97.78. Approximately 10,467,806 shares changed hands during mid-day trading, an increase of 1% from the average session volume of 10,316,849 shares. The stock had previously closed at $100.68.

Analysts Set New Price Targets

AAOI has been the subject of a number of research analyst reports. Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Rosenblatt Securities restated a “buy” rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a report on Friday, August 7th. B. Riley Financial restated a “neutral” rating on shares of Applied Optoelectronics in a report on Friday, August 7th. Weiss Ratings cut shares of Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. Finally, Needham & Company LLC lowered their target price on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $139.40.

Applied Optoelectronics Stock Down 2.9%

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 business has a 50 day simple moving average of $113.92 and a 200 day simple moving average of $133.60. The company has a market capitalization of $8.27 billion, a price-to-earnings ratio of -125.36 and a beta of 3.85.

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

Insider Buying and Selling

In other Applied Optoelectronics news, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total value of $3,545,676.12. Following the completion of the transaction, the insider directly owned 249,276 shares of the company’s stock, valued at $27,472,707.96. The trade was 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 J. Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $105.33, for a total value of $421,320.00. Following the completion of the transaction, the chief financial officer directly owned 367,168 shares of the company’s stock, valued at approximately $38,673,805.44. This represents a 1.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 54,172 shares of company stock valued at $6,324,229. Corporate insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Geneos Wealth Management Inc. increased its stake in Applied Optoelectronics by 1.4% during the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock worth $1,529,000 after buying an additional 243 shares during the period. Allworth Financial LP lifted its holdings in Applied Optoelectronics by 68.8% during the 2nd quarter. Allworth Financial LP now owns 596 shares of the semiconductor company’s stock worth $88,000 after buying an additional 243 shares in the last quarter. Polaris Financial Partners acquired a new stake in Applied Optoelectronics during the 3rd quarter worth approximately $26,000. EFG International AG purchased a new position in Applied Optoelectronics in the 2nd quarter valued at approximately $44,000. Finally, Persistent Asset Partners Ltd purchased a new position in Applied Optoelectronics in the 2nd quarter valued at approximately $47,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

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.