Applied Optoelectronics (NASDAQ:AAOI) Trading 6.5% Higher – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares were up 6.5% during trading on Monday . The company traded as high as $160.99 and last traded at $160.00. Approximately 9,585,600 shares were traded during mid-day trading, a decline of 11% from the average daily volume of 10,740,532 shares. The stock had previously closed at $150.28.

Wall Street Analysts Forecast Growth

AAOI has been the subject of a number of recent research reports. Rosenblatt Securities restated a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 7th. B. Riley Financial reiterated a “neutral” rating on shares of Applied Optoelectronics in a report on Friday, August 7th. Weiss Ratings lowered Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Raymond James Financial restated an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $139.40.

Applied Optoelectronics Price Performance

The company has a market capitalization of $11.11 billion, a price-to-earnings ratio of -168.47 and a beta of 3.76. The company has a 50-day moving average price of $130.54 and a 200-day moving average price of $123.66. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04. The business had revenue of $191.92 million for the quarter, compared to the consensus estimate of $190.48 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. Applied Optoelectronics’s revenue for the quarter was up 86.3% on a year-over-year basis. During the same period last year, the company posted ($0.16) EPS. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. On average, equities research analysts expect that Applied Optoelectronics, Inc. will post 0.6 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $166.53, for a total value of $9,825,270.00. Following the completion of the transaction, the chief executive officer owned 1,302,436 shares of the company’s stock, valued at $216,894,667.08. The trade was a 4.33% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David C. Kuo sold 29,227 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $4,867,172.31. Following the sale, the insider directly owned 149,078 shares in the company, valued at $24,825,959.34. The trade was a 16.39% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 323,204 shares of company stock worth $55,700,961 over the last ninety days. Insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Several institutional investors and hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. grew its stake in shares of 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 acquiring an additional 243 shares in the last quarter. Comerica Bank lifted its position in shares of Applied Optoelectronics by 27.6% in the fourth quarter. Comerica Bank now owns 1,386 shares of the semiconductor company’s stock worth $48,000 after purchasing an additional 300 shares in the last quarter. EFG International AG acquired a new position in Applied Optoelectronics during the second quarter worth $44,000. Persistent Asset Partners Ltd acquired a new position in Applied Optoelectronics during the second quarter worth $47,000. Finally, Fiduciary Financial Advisors acquired a new position in Applied Optoelectronics during the second quarter worth $48,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

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.