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

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have been given a consensus recommendation of “Hold” by the seven ratings firms that are currently covering the stock, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and three have given a buy rating to the company. The average 1 year target price among brokers that have covered the stock in the last year is $52.80.

A number of brokerages have weighed in on AAOI. Needham & Company LLC increased their price target 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. Northland Securities reaffirmed a “market perform” rating and set a $55.00 price objective on shares of Applied Optoelectronics in a research report on Friday, February 27th. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. B. Riley Financial raised Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 target price on the stock in a research report on Friday, February 27th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, January 21st.

Applied Optoelectronics Stock Down 2.8%

Shares of AAOI stock opened at $94.07 on Tuesday. Applied Optoelectronics has a 12 month low of $9.71 and a 12 month high of $128.96. The firm has a market cap of $7.07 billion, a PE ratio of -144.72 and a beta of 3.19. The stock has a 50 day moving average of $56.83 and a 200-day moving average of $38.98. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.18.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data on Thursday, February 26th. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.11. Applied Optoelectronics had a negative net margin of 8.39% and a negative return on equity of 5.29%. The business had revenue of $134.27 million for the quarter, compared to the consensus estimate of $131.56 million. During the same quarter last year, the company posted ($0.02) earnings per share. Applied Optoelectronics’s quarterly revenue was up 33.9% on a year-over-year basis. Applied Optoelectronics has set its Q1 2026 guidance at -0.090-0.000 EPS. On average, equities analysts predict that Applied Optoelectronics will post -1.18 EPS for the current year.

Insider Activity at Applied Optoelectronics

In related news, Director William H. Yeh sold 15,000 shares of the company’s stock in a transaction on Monday, March 9th. The stock was sold at an average price of $105.76, for a total value of $1,586,400.00. Following the completion of the transaction, the director directly owned 238,819 shares in the company, valued at approximately $25,257,497.44. This represents a 5.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Stefan J. Murry sold 4,000 shares of the firm’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $112.76, for a total value of $451,040.00. Following the completion of the transaction, the chief financial officer directly owned 280,070 shares of the company’s stock, valued at approximately $31,580,693.20. This trade represents a 1.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 273,433 shares of company stock worth $23,341,962 in the last three months. Company insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds have recently made changes to their positions in AAOI. Caitong International Asset Management Co. Ltd bought a new position in shares of Applied Optoelectronics during the 4th quarter worth about $1,375,000. Invesco Ltd. boosted its position in shares of Applied Optoelectronics by 5,208.9% during the 4th quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock valued at $122,439,000 after acquiring an additional 3,446,150 shares in the last quarter. XTX Topco Ltd increased its stake in Applied Optoelectronics by 167.6% in the fourth quarter. XTX Topco Ltd now owns 24,771 shares of the semiconductor company’s stock valued at $864,000 after acquiring an additional 15,513 shares during the period. SummitTX Capital L.P. acquired a new position in Applied Optoelectronics in the fourth quarter worth about $254,000. Finally, Quadrature Capital Ltd acquired a new position in Applied Optoelectronics in the fourth quarter worth about $1,453,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

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.