Applied Optoelectronics, Inc. (NASDAQ:AAOI) Given Average Recommendation of “Hold” by Analysts

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have earned an average recommendation of “Hold” from the six brokerages that are currently covering the stock, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. The average 12 month price target among analysts that have covered the stock in the last year is $141.80.

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Tuesday, July 7th. Needham & Company LLC reduced their price objective on Applied Optoelectronics from $260.00 to $220.00 and set a “buy” rating for the company in a research note on Wednesday, July 22nd. Rosenblatt Securities reissued a “buy” rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a research note on Monday, June 22nd. Wall Street Zen downgraded Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. Finally, Raymond James Financial reaffirmed an “outperform” rating on shares of Applied Optoelectronics in a research report on Wednesday, June 10th.

Insider Buying and Selling at Applied Optoelectronics

In other news, 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 completion of the transaction, the insider directly owned 286,124 shares in the company, valued at $48,812,754.40. This trade represents a 12.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.53, for a total transaction of $9,825,270.00. Following the sale, the chief executive officer directly owned 1,302,436 shares of the company’s stock, valued at approximately $216,894,667.08. The trade was a 4.33% decrease in their ownership of the stock. 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 a total of 500,215 shares of company stock worth $86,658,774 in the last ninety days. 3.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. purchased a new position in shares of Applied Optoelectronics during the first quarter valued at approximately $4,125,000. Next Century Growth Investors LLC purchased a new stake in Applied Optoelectronics in the 4th quarter valued at $16,220,000. Andar Capital Management HK Ltd bought a new position in Applied Optoelectronics during the 1st quarter valued at $11,335,000. Penn Capital Management Company LLC lifted its stake in Applied Optoelectronics by 4.7% during the 4th quarter. Penn Capital Management Company LLC now owns 446,032 shares of the semiconductor company’s stock valued at $15,565,000 after acquiring an additional 20,077 shares in the last quarter. Finally, 1492 Capital Management LLC purchased a new position in Applied Optoelectronics during the 4th quarter worth $7,529,000. Institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Stock Performance

NASDAQ:AAOI opened at $100.15 on Monday. Applied Optoelectronics has a 12 month low of $18.50 and a 12 month high of $233.67. The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18. The stock has a market capitalization of $8.04 billion, a price-to-earnings ratio of -151.74 and a beta of 3.69. The firm has a fifty day simple moving average of $150.48 and a two-hundred day simple moving average of $113.64.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.02). The company had revenue of $151.14 million for 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%. Applied Optoelectronics’s revenue for the quarter was up 51.3% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.02) EPS. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Analysts expect that Applied Optoelectronics will post 0.6 EPS for the current fiscal year.

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.