Applied Optoelectronics (NASDAQ:AAOI) Shares Up 6.6% – Time to Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price shot up 6.6% during trading on Monday. The company traded as high as $74.39 and last traded at $71.94. Approximately 11,156,561 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 10,401,553 shares. The stock had previously closed at $67.51.

Wall Street Analyst Weigh In

AAOI has been the topic of several recent analyst reports. Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday, August 7th. B. Riley Financial decreased their target price on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a research report on Thursday, October 15th. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Raymond James Financial reiterated an “outperform” rating and issued a $178.00 price target on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Finally, Needham & Company LLC decreased their price objective on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a report on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $147.00.

Applied Optoelectronics Price Performance

The firm has a 50-day simple moving average of $104.03 and a 200-day simple moving average of $132.40. The firm has a market capitalization of $6.08 billion, a PE ratio of -92.23 and a beta of 3.85. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.02 by $0.04. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The firm had revenue of $191.92 million for the quarter, compared to analysts’ expectations of $190.48 million. During the same quarter in the prior year, the business earned ($0.16) EPS. The business’s quarterly revenue was up 86.3% on a year-over-year basis. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, equities analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Insider Activity at Applied Optoelectronics

In other news, insider Shu-Hua Yeh sold 6,000 shares of the firm’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $120.03, for a total value of $720,180.00. Following the transaction, the insider owned 371,498 shares of the company’s stock, valued at $44,590,904.94. This trade represents a 1.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the transaction, the chief financial officer directly owned 363,168 shares in the company, valued at approximately $37,359,092.16. The trade was a 1.09% decrease in their ownership of the stock. 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 three months, insiders have sold 56,887 shares of company stock worth $6,581,484. Corporate insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently added to or reduced their stakes in the company. Signaturefd LLC raised its holdings in Applied Optoelectronics by 206.8% during the third quarter. Signaturefd LLC now owns 2,043 shares of the semiconductor company’s stock valued at $203,000 after acquiring an additional 1,377 shares during the period. Wedbush Securities Inc. boosted its stake in Applied Optoelectronics by 99.0% in the 3rd quarter. Wedbush Securities Inc. now owns 6,244 shares of the semiconductor company’s stock worth $620,000 after purchasing an additional 3,106 shares during the period. Inspire Investing LLC bought a new position in Applied Optoelectronics in the 3rd quarter worth approximately $481,000. MBL Wealth LLC grew its holdings in Applied Optoelectronics by 364.7% during the 3rd quarter. MBL Wealth LLC now owns 14,331 shares of the semiconductor company’s stock valued at $1,422,000 after buying an additional 11,247 shares in the last quarter. Finally, Oakmont Investment Advisors Inc. purchased a new stake in Applied Optoelectronics during the 3rd quarter valued at approximately $526,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.