Applied Optoelectronics (NASDAQ:AAOI) Shares Up 6.2% – Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s stock price rose 6.2% on Tuesday. The company traded as high as $130.42 and last traded at $129.1450. Approximately 5,670,762 shares changed hands during trading, a decline of 44% from the average daily volume of 10,200,799 shares. The stock had previously closed at $121.57.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Raymond James Financial reiterated an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. B. Riley Financial restated a “neutral” rating on shares of Applied Optoelectronics in a research note on Friday, August 7th. Needham & Company LLC dropped their price objective on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Finally, Rosenblatt Securities restated a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Applied Optoelectronics presently has a consensus rating of “Hold” and a consensus price target of $139.40.

Applied Optoelectronics Price Performance

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 stock has a market capitalization of $10.36 billion, a PE ratio of -157.10 and a beta of 3.85. The firm has a 50 day moving average price of $113.49 and a 200 day moving average price of $133.47.

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

Insider Buying and Selling

In other news, insider Shu-Hua Yeh sold 6,000 shares of the stock in a transaction on 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 sale, the insider directly owned 371,498 shares of the company’s stock, valued at $44,590,904.94. This represents a 1.59% decrease in their ownership of the stock. The sale 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 Hung-Lun Chang sold 32,172 shares of the firm’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the sale, the insider owned 249,276 shares in the company, valued at $27,472,707.96. The trade was a 11.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 58,172 shares of company stock valued at $6,812,589. 3.80% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. lifted its stake in Applied Optoelectronics by 1.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock worth $1,529,000 after purchasing an additional 243 shares in the last quarter. Allworth Financial LP increased its position in Applied Optoelectronics by 68.8% in the second quarter. Allworth Financial LP now owns 596 shares of the semiconductor company’s stock worth $88,000 after purchasing an additional 243 shares during the last quarter. Polaris Financial Partners bought a new position in Applied Optoelectronics during the third quarter valued at $26,000. EFG International AG bought a new stake in shares of Applied Optoelectronics in the 2nd quarter worth about $44,000. Finally, Persistent Asset Partners Ltd purchased a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at about $47,000. 61.70% of the stock is owned by institutional investors.

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.

The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.