Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 9.5% – Here’s What Happened

Applied Optoelectronics, Inc. (NASDAQ:AAOI) shares traded down 9.5% during trading on Monday. The stock traded as low as $61.88 and last traded at $62.50. 14,798,599 shares changed hands during mid-day trading, an increase of 42% from the average session volume of 10,455,648 shares. The stock had previously closed at $69.05.

Analysts Set New Price Targets

Several brokerages have weighed in on AAOI. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. B. Riley Financial lowered their price target on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a report on Thursday, October 15th. Raymond James Financial reaffirmed an “outperform” rating and issued a $178.00 price objective on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Northland Securities raised shares of Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a research note on Monday. Finally, Needham & Company LLC dropped their price target on shares of Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating on the stock in a research report on Tuesday, October 27th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Applied Optoelectronics currently has a consensus rating of “Moderate Buy” and a consensus target price of $156.00.

Applied Optoelectronics Trading Down 9.5%

The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The firm has a market cap of $5.29 billion, a PE ratio of -80.13 and a beta of 4.04. The company’s 50-day moving average is $98.76 and its 200 day moving average is $112.74.

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

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the transaction, the insider owned 371,498 shares of the company’s stock, valued at $44,590,904.94. The trade was a 1.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total value of $3,545,676.12. Following the transaction, the insider directly owned 249,276 shares in the company, valued at approximately $27,472,707.96. This trade represents a 11.43% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 56,887 shares of company stock valued at $6,581,484. Company insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AAOI. Commonwealth Equity Services LLC grew its holdings in shares of Applied Optoelectronics by 6.9% during the 3rd quarter. Commonwealth Equity Services LLC now owns 82,530 shares of the semiconductor company’s stock valued at $8,192,000 after acquiring an additional 5,317 shares in the last quarter. BOCHK Asset Management Ltd purchased a new stake in shares of Applied Optoelectronics during the 3rd quarter worth about $99,000. Mirae Asset Global Investments Co. Ltd. bought a new stake in shares of Applied Optoelectronics in the 3rd quarter valued at approximately $14,087,000. Pilgrim Partners Asia Pte Ltd acquired a new position in Applied Optoelectronics in the third quarter worth approximately $695,000. Finally, MGO One Seven LLC increased its holdings in Applied Optoelectronics by 79.8% in the third quarter. MGO One Seven LLC now owns 4,510 shares of the semiconductor company’s stock worth $448,000 after buying an additional 2,002 shares during the last quarter. Institutional investors and hedge funds 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.