Rosenblatt Securities Reaffirms “Buy” Rating for Applied Optoelectronics (NASDAQ:AAOI)

Applied Optoelectronics (NASDAQ:AAOI)‘s stock had its “buy” rating reiterated by investment analysts at Rosenblatt Securities in a research note issued on Monday,Benzinga reports. They currently have a $220.00 price target on the semiconductor company’s stock. Rosenblatt Securities’ target price would suggest a potential upside of 35.93% from the company’s current price.

Other equities analysts have also issued reports about the stock. Needham & Company LLC increased their price objective on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the company a “buy” rating in a report on Friday, February 27th. Wall Street Zen lowered shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. B. Riley Financial upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 target price for the company in a research report on Friday, February 27th. Northland Securities reiterated a “market perform” rating and set a $55.00 target price on shares of Applied Optoelectronics in a research report on Friday, February 27th. Finally, Raymond James Financial reissued an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Applied Optoelectronics has an average rating of “Hold” and an average price target of $113.80.

Applied Optoelectronics Stock Performance

Shares of NASDAQ:AAOI opened at $161.85 on Monday. The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18. Applied Optoelectronics has a 1-year low of $18.50 and a 1-year high of $233.67. The stock has a market capitalization of $12.99 billion, a P/E ratio of -245.23 and a beta of 3.67. The business has a 50-day moving average price of $169.57 and a two-hundred day moving average price of $97.59.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The business had revenue of $151.14 million during the quarter, compared to the consensus estimate of $156.98 million. During the same period last year, the business posted ($0.02) EPS. The firm’s revenue for the quarter was up 51.3% compared to the same quarter last year. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Equities analysts predict that Applied Optoelectronics will post 0.6 earnings per share for the current year.

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, insider Shu-Hua (Joshua) Yeh sold 6,000 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $171.89, for a total value of $1,031,340.00. Following the sale, the insider directly owned 394,207 shares in the company, valued at approximately $67,760,241.23. This trade represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the transaction, the insider directly owned 286,124 shares in the company, valued at approximately $48,812,754.40. This represents a 12.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 500,215 shares of company stock valued at $86,716,414. Corporate insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP increased its holdings in shares of Applied Optoelectronics by 1,923.7% in the fourth quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock worth $27,000 after acquiring an additional 731 shares in the last quarter. Comerica Bank bought a new position in shares of Applied Optoelectronics during the 3rd quarter valued at about $28,000. Northwestern Mutual Wealth Management Co. grew its position in shares of Applied Optoelectronics by 166.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock valued at $42,000 after purchasing an additional 750 shares during the period. Kohmann Bosshard Financial Services LLC acquired a new position in shares of Applied Optoelectronics in the 4th quarter valued at approximately $55,000. Finally, Headlands Technologies LLC bought a new stake in Applied Optoelectronics during the 2nd quarter worth approximately $57,000. 61.70% of the stock is currently owned by institutional investors.

About Applied Optoelectronics

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.