Applied Optoelectronics (NASDAQ:AAOI) Shares Gap Up – Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) gapped up prior to trading on Monday . The stock had previously closed at $32.06, but opened at $33.68. Applied Optoelectronics shares last traded at $31.3420, with a volume of 468,036 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on AAOI shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. Needham & Company LLC increased their target price on Applied Optoelectronics from $38.00 to $43.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. B. Riley reissued a “sell” rating and issued a $15.00 target price on shares of Applied Optoelectronics in a report on Monday, November 10th. Northland Securities set a $45.00 price objective on Applied Optoelectronics in a report on Thursday, December 11th. Finally, Rosenblatt Securities upped their target price on shares of Applied Optoelectronics from $35.00 to $50.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $35.60.

Applied Optoelectronics Stock Down 3.1%

The company has a market cap of $1.98 billion, a P/E ratio of -8.99 and a beta of 3.25. The company has a quick ratio of 1.63, a current ratio of 2.31 and a debt-to-equity ratio of 0.23. The company has a fifty day moving average of $28.68 and a 200 day moving average of $25.96.

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

Institutional Trading of Applied Optoelectronics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AAOI. Nisa Investment Advisors LLC boosted its stake 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 worth $25,000 after acquiring an additional 801 shares during the last quarter. Comerica Bank bought a new position in Applied Optoelectronics in the 3rd quarter worth $28,000. 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 in the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. bought a new stake in Applied Optoelectronics during the second quarter valued at about $49,000. Finally, CWM LLC grew its holdings in Applied Optoelectronics by 175.5% during the second quarter. CWM LLC now owns 2,218 shares of the semiconductor company’s stock valued at $57,000 after purchasing an additional 1,413 shares during the period. 61.72% of the stock is owned by hedge funds and other institutional investors.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.