Applied Optoelectronics, Inc. (NASDAQ:AAOI) Receives $35.60 Consensus Price Target from Brokerages

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have been assigned an average rating of “Hold” from the seven brokerages that are currently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell recommendation, one has assigned a hold recommendation and four have given a buy recommendation to the company. The average 1 year price objective among brokerages that have covered the stock in the last year is $35.60.

A number of research analysts recently issued reports on AAOI shares. Needham & Company LLC lifted their target price on Applied Optoelectronics from $38.00 to $43.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. B. Riley restated a “sell” rating and set a $15.00 price objective on shares of Applied Optoelectronics in a research report on Monday, November 10th. Northland Securities set a $45.00 target price on shares of Applied Optoelectronics in a report on Thursday, December 11th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, January 21st. Finally, Rosenblatt Securities restated a “buy” rating and issued a $50.00 price target on shares of Applied Optoelectronics in a research report on Friday, December 19th.

Applied Optoelectronics Trading Up 21.0%

Applied Optoelectronics stock opened at $45.23 on Monday. Applied Optoelectronics has a 12-month low of $9.71 and a 12-month high of $46.30. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63. The stock has a market capitalization of $3.09 billion, a PE ratio of -14.05 and a beta of 3.26. The firm has a 50 day simple moving average of $32.89 and a 200-day simple moving average of $29.06.

Applied Optoelectronics (NASDAQ:AAOI) last released its earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%.The firm had revenue of $118.63 million during the quarter, compared to the consensus estimate of $119.77 million. During the same period in the prior year, the firm posted ($0.21) earnings per share. The firm’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. As a group, equities research analysts expect that Applied Optoelectronics will post -1.18 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider David C. Kuo sold 12,500 shares of Applied Optoelectronics stock in a transaction dated Tuesday, December 23rd. The stock was sold at an average price of $40.15, for a total value of $501,875.00. Following the transaction, the insider owned 130,948 shares of the company’s stock, valued at approximately $5,257,562.20. This trade represents a 8.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Stefan J. Murry sold 3,000 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $33.75, for a total value of $101,250.00. Following the sale, the chief financial officer owned 283,971 shares in the company, valued at approximately $9,584,021.25. The trade was a 1.05% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 16,500 shares of company stock worth $638,126 over the last 90 days. Insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. CloudAlpha Capital Management Limited Hong Kong boosted its position in shares of Applied Optoelectronics by 410.7% in the second quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company’s stock worth $36,197,000 after buying an additional 1,133,115 shares during the period. Chung Wu Investment Group LLC purchased a new stake in Applied Optoelectronics in the 2nd quarter worth about $344,000. Sovereign Financial Group Inc. purchased a new stake in Applied Optoelectronics in the 2nd quarter worth about $287,000. Allspring Global Investments Holdings LLC acquired a new stake in Applied Optoelectronics during the 2nd quarter worth about $7,201,000. Finally, Squarepoint Ops LLC purchased a new position in Applied Optoelectronics during the 2nd quarter valued at about $4,283,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

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.