Applied Optoelectronics’ (AAOI) Buy Rating Reaffirmed at Rosenblatt Securities

Rosenblatt Securities reaffirmed their buy rating on shares of Applied Optoelectronics (NASDAQ:AAOI) in a research note issued to investors on Friday,Benzinga reports. Rosenblatt Securities currently has a $50.00 price objective on the semiconductor company’s stock.

A number of other brokerages also recently issued reports on AAOI. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. Needham & Company LLC raised their price target on shares of 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 note on Thursday, December 11th. Finally, B. Riley reiterated a “sell” rating and set a $15.00 price objective on shares of Applied Optoelectronics in a research report on Monday, November 10th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $35.60.

Applied Optoelectronics Trading Up 7.1%

Shares of NASDAQ AAOI opened at $31.32 on Friday. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 2.31. Applied Optoelectronics has a 52-week low of $9.71 and a 52-week high of $41.27. The firm has a 50 day moving average price of $28.60 and a two-hundred day moving average price of $26.10. The stock has a market cap of $2.14 billion, a P/E ratio of -9.73 and a beta of 3.25.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) EPS for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. The company had revenue of $118.63 million for the quarter, compared to analyst estimates of $119.77 million. Applied Optoelectronics had a negative net margin of 36.97% and a negative return on equity of 7.34%. Applied Optoelectronics’s revenue was up 82.1% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.21) earnings per share. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. As a group, equities analysts forecast that Applied Optoelectronics will post -1.18 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its holdings in Applied Optoelectronics by 13.6% in the third quarter. Vanguard Group Inc. now owns 4,624,570 shares of the semiconductor company’s stock worth $119,915,000 after purchasing an additional 551,910 shares during the period. CloudAlpha Capital Management Limited Hong Kong grew its stake in shares of Applied Optoelectronics by 410.7% in the 2nd quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company’s stock valued at $36,197,000 after buying an additional 1,133,115 shares during the period. Geode Capital Management LLC grew its stake in shares of Applied Optoelectronics by 18.8% in the 2nd quarter. Geode Capital Management LLC now owns 1,285,693 shares of the semiconductor company’s stock valued at $33,034,000 after buying an additional 203,830 shares during the period. Citigroup Inc. increased its position in Applied Optoelectronics by 60.0% in the 3rd quarter. Citigroup Inc. now owns 1,160,456 shares of the semiconductor company’s stock valued at $30,091,000 after buying an additional 435,349 shares in the last quarter. Finally, Hawk Ridge Capital Management LP acquired a new position in Applied Optoelectronics during the 3rd quarter worth approximately $21,392,000. Institutional investors and hedge funds own 61.72% of the company’s stock.

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.