Applied Optoelectronics (NASDAQ:AAOI) Stock Jumps 6.8% – Should You Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price shot up 6.8% during mid-day trading on Wednesday. The company traded as high as $82.28 and last traded at $82.22. Approximately 10,185,296 shares were traded during mid-day trading, a decline of 2% from the average session volume of 10,388,024 shares. The stock had previously closed at $76.95.

Analysts Set New Price Targets

AAOI has been the topic of a number of analyst reports. Raymond James Financial reiterated an “outperform” rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Needham & Company LLC decreased their price objective on Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating on the stock in a report on Tuesday. B. Riley Financial reduced their price objective on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a research note on Thursday, October 15th. Rosenblatt Securities reissued a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a report on Friday, August 7th. Finally, Weiss Ratings raised shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, October 21st. 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 company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $143.00.

Applied Optoelectronics Stock Performance

The business’s fifty day moving average is $99.96 and its two-hundred day moving average is $112.57. The stock has a market capitalization of $5.84 billion, a PE ratio of -88.53 and a beta of 3.85. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12.

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

Insider Activity

In other news, CFO Stefan Murry sold 4,000 shares of the firm’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total transaction of $411,480.00. Following the sale, the chief financial officer owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. This trade represents a 1.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $120.03, for a total value of $720,180.00. Following the completion of the transaction, the insider owned 371,498 shares in the company, valued at $44,590,904.94. This trade represents a 1.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 56,887 shares of company stock valued at $6,581,484. 3.80% of the stock is currently owned by company insiders.

Institutional Trading of Applied Optoelectronics

A number of institutional investors have recently modified their holdings of AAOI. Polaris Financial Partners acquired a new position in Applied Optoelectronics in the third quarter worth about $26,000. EFG International AG acquired a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $44,000. Persistent Asset Partners Ltd bought a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at approximately $47,000. Fiduciary Financial Advisors bought a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at approximately $48,000. Finally, Integrated Wealth Concepts LLC bought a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at approximately $58,000. 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.