Applied Optoelectronics (NASDAQ:AAOI) Trading Down 12.6% – Here’s Why

Applied Optoelectronics, Inc. (NASDAQ:AAOI) was down 12.6% during mid-day trading on Monday . The stock traded as low as $25.07 and last traded at $24.9710. Approximately 3,050,059 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 4,637,303 shares. The stock had previously closed at $28.57.

Analyst Ratings Changes

Several brokerages have recently commented on AAOI. Wall Street Zen lowered Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Saturday, August 9th. Needham & Company LLC assumed coverage on Applied Optoelectronics in a research report on Friday, July 25th. They set a “buy” rating and a $32.00 target price on the stock. Raymond James Financial raised their price target on Applied Optoelectronics from $18.00 to $25.00 and gave the stock an “outperform” rating in a report on Friday, August 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. Finally, B. Riley reaffirmed a “sell” rating and issued a $15.00 price objective on shares of Applied Optoelectronics in a research report on Monday. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $27.20.

Applied Optoelectronics Price Performance

The stock has a fifty day moving average of $29.44 and a 200 day moving average of $24.15. The stock has a market cap of $1.60 billion, a price-to-earnings ratio of -7.94 and a beta of 2.88. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. The company had revenue of $118.63 million during the quarter, compared to analyst estimates of $119.77 million. Applied Optoelectronics had a negative net margin of 36.97% and a negative return on equity of 7.34%. Applied Optoelectronics’s revenue for the quarter was up 82.1% compared to the same quarter last year. During the same period last year, the firm posted ($0.21) EPS. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. On average, analysts expect that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, insider Hung-Lun (Fred) Chang sold 15,784 shares of Applied Optoelectronics stock in a transaction dated Wednesday, August 13th. The stock was sold at an average price of $22.70, for a total transaction of $358,296.80. Following the completion of the transaction, the insider owned 256,326 shares in the company, valued at approximately $5,818,600.20. This trade represents a 5.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director William H. Yeh acquired 4,000 shares of the firm’s stock in a transaction dated Thursday, August 14th. The stock was bought at an average cost of $21.40 per share, with a total value of $85,600.00. Following the acquisition, the director owned 253,819 shares in the company, valued at approximately $5,431,726.60. This trade represents a 1.60% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 44,100 shares of company stock worth $1,000,878 in the last three months. Company insiders own 4.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Nisa Investment Advisors LLC increased its stake in shares of Applied Optoelectronics by 497.5% in the 2nd quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 801 shares in the last quarter. AlphaQuest LLC increased its position in shares of Applied Optoelectronics by 243.9% in the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company’s stock valued at $35,000 after buying an additional 1,629 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Applied Optoelectronics by 85.9% during the 2nd quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company’s stock worth $46,000 after buying an additional 825 shares during the period. Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in shares of Applied Optoelectronics during the 2nd quarter valued at approximately $49,000. Finally, CWM LLC grew its stake in Applied Optoelectronics by 175.5% in 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 period. Hedge funds and other institutional investors own 61.72% of the company’s stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.