Applied Optoelectronics, Inc. (NASDAQ:AAOI) Receives Consensus Recommendation of “Hold” from Analysts

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has been given a consensus rating of “Hold” by the six ratings firms that are currently covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, two have given a hold rating and three have assigned a buy rating to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $113.80.

Several research firms recently commented on AAOI. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Tuesday, July 7th. Rosenblatt Securities reissued a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a report on Monday, June 22nd. Raymond James Financial reaffirmed an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Finally, Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th.

Applied Optoelectronics Stock Performance

NASDAQ AAOI opened at $102.41 on Monday. The company has a market capitalization of $8.22 billion, a PE ratio of -155.17 and a beta of 3.69. The company has a fifty day moving average of $159.39 and a 200 day moving average of $111.08. Applied Optoelectronics has a 1 year low of $18.50 and a 1 year high of $233.67. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.83 and a quick ratio of 3.03.

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

Insider Buying and Selling at Applied Optoelectronics

In other news, insider David C. Kuo sold 29,227 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.53, for a total transaction of $4,867,172.31. Following the sale, the insider directly owned 149,078 shares in the company, valued at $24,825,959.34. This trade represents a 16.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $170.60, for a total value of $6,880,127.40. Following the completion of the transaction, the insider owned 286,124 shares of the company’s stock, valued at approximately $48,812,754.40. This represents a 12.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 500,215 shares of company stock worth $86,658,774. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in Applied Optoelectronics by 7.7% during the fourth quarter. Vanguard Group Inc. now owns 4,982,660 shares of the semiconductor company’s stock valued at $173,696,000 after purchasing an additional 358,090 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Applied Optoelectronics by 5,208.9% during the fourth quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock worth $122,439,000 after buying an additional 3,446,150 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in Applied Optoelectronics by 5,321.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock worth $77,730,000 after purchasing an additional 2,188,630 shares in the last quarter. Hawk Ridge Capital Management LP increased its holdings in shares of Applied Optoelectronics by 106.2% in the fourth quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock valued at $59,293,000 after purchasing an additional 875,903 shares during the last quarter. Finally, Morgan Stanley raised its holdings in shares of Applied Optoelectronics by 157.1% during the 4th quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock worth $59,257,000 after acquiring an additional 1,038,775 shares during the period. Institutional investors and hedge funds 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.