Applied Optoelectronics (NASDAQ:AAOI) Trading Down 5.9% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) dropped 5.9% on Friday . The stock traded as low as $38.55 and last traded at $38.60. Approximately 1,254,715 shares were traded during trading, a decline of 74% from the average daily volume of 4,735,812 shares. The stock had previously closed at $41.00.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Northland Securities set a $45.00 price objective on Applied Optoelectronics in a research note on Thursday, December 11th. B. Riley restated a “sell” rating and set a $15.00 target price on shares of Applied Optoelectronics in a research note on Monday, November 10th. Needham & Company LLC upped their price target on shares of Applied Optoelectronics from $38.00 to $43.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $50.00 price target on shares of Applied Optoelectronics in a research note on Friday, December 19th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Applied Optoelectronics currently has an average rating of “Hold” and an average target price of $35.60.

Applied Optoelectronics Trading Down 9.3%

The stock has a market cap of $2.54 billion, a P/E ratio of -11.54 and a beta of 3.25. The stock’s 50-day moving average is $29.50 and its two-hundred day moving average is $26.97. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63.

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

Institutional Trading of Applied Optoelectronics

Large investors have recently added to or reduced their stakes in the company. Nisa Investment Advisors LLC boosted its position in shares of Applied Optoelectronics by 497.5% during the 2nd quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company’s stock valued at $25,000 after acquiring an additional 801 shares during the last quarter. Comerica Bank purchased a new stake in Applied Optoelectronics during the third quarter valued at $28,000. AlphaQuest LLC raised its stake in Applied Optoelectronics by 243.9% during the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company’s stock valued at $35,000 after purchasing an additional 1,629 shares in the last quarter. GAMMA Investing LLC lifted its position in Applied Optoelectronics by 85.9% during the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company’s stock valued at $46,000 after purchasing an additional 825 shares during the last quarter. Finally, Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in shares of Applied Optoelectronics in the 2nd quarter worth $49,000. Institutional investors own 61.70% 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.