Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 8.9% – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price dropped 8.9% during trading on Tuesday . The stock traded as low as $141.80 and last traded at $141.1220. 2,499,625 shares traded hands during trading, a decline of 77% from the average daily volume of 10,700,515 shares. The stock had previously closed at $154.89.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Needham & Company LLC cut their price target on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a research note on Friday, August 7th. Weiss Ratings lowered Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday. Raymond James Financial restated an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Finally, Rosenblatt Securities restated a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $139.40.

Applied Optoelectronics Trading Down 7.0%

The company’s fifty day simple moving average is $129.48 and its two-hundred day simple moving average is $124.25. The company has a market capitalization of $10.33 billion, a price-to-earnings ratio of -156.65 and a beta of 3.76. 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 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. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company had revenue of $191.92 million during the quarter, compared to analyst estimates of $190.48 million. During the same quarter in the previous year, the business earned ($0.16) EPS. The firm’s 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. Research analysts forecast that Applied Optoelectronics, Inc. will post 0.6 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the transaction, the insider owned 286,124 shares in the company, valued at $48,812,754.40. The trade was a 12.35% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua (Joshua) Yeh sold 4,715 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $126.50, for a total value of $596,447.50. Following the completion of the transaction, the insider owned 383,498 shares of the company’s stock, valued at $48,512,497. This represents a 1.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 323,204 shares of company stock valued at $55,700,961. 3.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Applied Optoelectronics by 10.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock worth $393,000 after acquiring an additional 2,415 shares in the last quarter. Cetera Investment Advisers acquired a new stake in shares of Applied Optoelectronics during the second quarter worth $377,000. New York State Common Retirement Fund lifted its position in Applied Optoelectronics by 36.0% in the 2nd quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company’s stock valued at $437,000 after acquiring an additional 4,500 shares in the last quarter. Invesco Ltd. lifted its position in Applied Optoelectronics by 50.0% in the 2nd quarter. Invesco Ltd. now owns 60,817 shares of the semiconductor company’s stock valued at $1,562,000 after acquiring an additional 20,261 shares in the last quarter. Finally, First Trust Advisors LP acquired a new position in Applied Optoelectronics in the 2nd quarter worth $952,000. Institutional investors own 61.70% of the company’s stock.

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.