Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 11.6% – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price dropped 11.6% on Wednesday . The stock traded as low as $40.28 and last traded at $40.7920. Approximately 3,195,479 shares traded hands during trading, a decline of 40% from the average daily volume of 5,370,367 shares. The stock had previously closed at $46.12.

Wall Street Analyst Weigh In

AAOI has been the topic of several research reports. Rosenblatt Securities reaffirmed a “buy” rating and issued a $50.00 target price on shares of Applied Optoelectronics in a research report on Friday, December 19th. Northland Securities set a $45.00 price objective on Applied Optoelectronics in a research note on Thursday, December 11th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, January 21st. Needham & Company LLC raised their price objective on Applied Optoelectronics from $38.00 to $43.00 and gave the stock a “buy” rating in a research report on Thursday, December 11th. Finally, B. Riley reissued a “sell” rating and set a $15.00 price objective on shares of Applied Optoelectronics in a report on Monday, November 10th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $35.60.

Applied Optoelectronics Price Performance

The company has a 50-day moving average of $34.65 and a 200 day moving average of $29.45. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 2.31. The firm has a market cap of $2.72 billion, a P/E ratio of -12.39 and a beta of 3.32.

Applied Optoelectronics (NASDAQ:AAOI) last issued its quarterly earnings data on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, beating 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 company had revenue of $118.63 million during the quarter, compared to analysts’ expectations of $119.77 million. During the same period last year, the business earned ($0.21) earnings per share. The business’s revenue was up 82.1% on a year-over-year basis. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. On average, sell-side analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Insiders Place Their Bets

In other Applied Optoelectronics news, insider David C. Kuo sold 12,000 shares of Applied Optoelectronics stock in a transaction on Wednesday, January 28th. The stock was sold at an average price of $45.05, for a total value of $540,600.00. Following the completion of the transaction, the insider owned 114,636 shares in the company, valued at approximately $5,164,351.80. The trade was a 9.48% 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 934 shares of the stock in a transaction on Tuesday, January 13th. The stock was sold at an average price of $35.00, for a total value of $32,690.00. Following the sale, the chief financial officer owned 283,037 shares in the company, valued at $9,906,295. The trade was a 0.33% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 28,500 shares of company stock valued at $1,178,726 over the last ninety days. Insiders own 4.50% of the company’s stock.

Institutional Trading of Applied Optoelectronics

Several hedge funds have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Applied Optoelectronics by 10.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock valued at $393,000 after buying an additional 2,415 shares during the period. KLP Kapitalforvaltning AS grew its position in shares of Applied Optoelectronics by 47.9% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 10,500 shares of the semiconductor company’s stock worth $270,000 after buying an additional 3,400 shares during the period. Sovereign Financial Group Inc. acquired a new stake in shares of Applied Optoelectronics during the 2nd quarter worth approximately $287,000. CWM LLC raised its position in shares of Applied Optoelectronics by 175.5% during the 2nd quarter. CWM LLC now owns 2,218 shares of the semiconductor company’s stock valued at $57,000 after acquiring an additional 1,413 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC acquired a new position in Applied Optoelectronics in the second quarter valued at about $7,201,000. 61.70% of the stock is owned by 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.