Applied Optoelectronics (NASDAQ:AAOI) Price Target Cut to $115.00 by Analysts at Rosenblatt Securities

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

Other equities analysts have also issued reports about the stock. Needham & Company LLC dropped their price objective 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. Northland Securities upgraded shares of Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 price target on the stock in a research note on Monday. B. Riley Financial lowered their price target on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a report on Thursday, October 15th. Raymond James Financial reissued an “outperform” rating and issued a $178.00 price target on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Finally, Weiss Ratings upgraded shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $121.00.

Applied Optoelectronics Stock Down 20.9%

AAOI stock opened at $46.89 on Friday. Applied Optoelectronics has a 1-year low of $18.50 and a 1-year high of $233.67. The business’s 50 day simple moving average is $94.22 and its 200 day simple moving average is $113.19. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The firm 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 announced its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.03. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. The business had revenue of $269.88 million during the quarter, compared to the consensus estimate of $268.11 million. During the same quarter last year, the firm posted ($0.09) EPS. The company’s quarterly revenue was up 127.5% on a year-over-year basis. As a group, research analysts anticipate that Applied Optoelectronics will post 0.55 EPS for the current year.

Insider Activity

In related 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 value 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Stefan Murry sold 4,000 shares of the firm’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total transaction of $411,480.00. Following the transaction, the chief financial officer directly owned 363,168 shares in the company, valued at approximately $37,359,092.16. This represents a 1.09% 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. Over the last 90 days, insiders sold 52,172 shares of company stock valued at $5,985,036. 3.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Polaris Financial Partners acquired a new stake in Applied Optoelectronics in the third quarter valued at $26,000. EFG International AG bought a new position in Applied Optoelectronics during the 2nd quarter worth $44,000. Persistent Asset Partners Ltd bought a new position in Applied Optoelectronics during the 2nd quarter worth $47,000. Fiduciary Financial Advisors acquired a new position in Applied Optoelectronics during the 2nd quarter worth about $48,000. Finally, Jacobi Capital Management LLC acquired a new position in Applied Optoelectronics during the 3rd quarter worth about $33,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

Key Applied Optoelectronics News

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.