Applied Optoelectronics (NASDAQ:AAOI) Issues Earnings Results, Beats Expectations By $0.11 EPS

Applied Optoelectronics (NASDAQ:AAOI) posted its quarterly earnings data on Thursday. The semiconductor company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.11, FiscalAI reports. The firm had revenue of $134.27 million for the quarter, compared to analyst estimates of $131.56 million. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%. Applied Optoelectronics updated its Q1 2026 guidance to -0.090-0.000 EPS.

Applied Optoelectronics Price Performance

NASDAQ:AAOI traded down $4.43 during trading hours on Thursday, hitting $53.69. The company’s stock had a trading volume of 5,154,143 shares, compared to its average volume of 5,102,567. Applied Optoelectronics has a twelve month low of $9.71 and a twelve month high of $59.25. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63. The stock has a fifty day simple moving average of $40.61 and a 200-day simple moving average of $32.00. The company has a market capitalization of $3.67 billion, a P/E ratio of -16.67 and a beta of 3.32.

Insider Activity

In related news, insider David C. Kuo sold 17,467 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $50.17, for a total transaction of $876,319.39. Following the sale, the insider directly owned 111,663 shares of the company’s stock, valued at approximately $5,602,132.71. The trade was a 13.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Stefan J. Murry sold 11,693 shares of the stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $50.25, for a total transaction of $587,573.25. Following the completion of the transaction, the chief financial officer directly owned 290,050 shares of the company’s stock, valued at approximately $14,575,012.50. The trade was a 3.88% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 66,520 shares of company stock valued at $3,080,367. Insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Comerica Bank bought a new position in shares of Applied Optoelectronics in the 3rd quarter valued at $28,000. Northwestern Mutual Wealth Management Co. grew its position in Applied Optoelectronics by 166.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after acquiring an additional 750 shares during the last quarter. Headlands Technologies LLC acquired a new position in Applied Optoelectronics in the 2nd quarter worth about $57,000. Wexford Capital LP bought a new position in Applied Optoelectronics in the third quarter valued at about $95,000. Finally, State of Wyoming acquired a new stake in shares of Applied Optoelectronics during the fourth quarter valued at about $160,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on AAOI shares. Needham & Company LLC increased their target price on Applied Optoelectronics from $38.00 to $43.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. Northland Securities set a $45.00 price objective on shares of Applied Optoelectronics in a research report on Thursday, December 11th. Rosenblatt Securities reiterated a “buy” rating and set a $50.00 price objective on shares of Applied Optoelectronics in a research note on Thursday, February 19th. B. Riley Financial reissued a “sell” rating and issued a $15.00 target price on shares of Applied Optoelectronics in a report on Monday, November 10th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Applied Optoelectronics has a consensus rating of “Hold” and an average price target of $35.60.

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.