Applied Optoelectronics (NASDAQ:AAOI) Stock Falls 1.9% – Here’s What Happened

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price was down 1.9% on Tuesday. The company traded as low as $73.05 and last traded at $76.74. 8,752,863 shares were traded during trading, a decline of 16% from the average session volume of 10,397,017 shares. The stock had previously closed at $78.20.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on the company. Raymond James Financial reissued an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price target on shares of Applied Optoelectronics in a report on Friday, August 7th. Weiss Ratings lowered shares of Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. Finally, Needham & Company LLC dropped their price objective on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Applied Optoelectronics has a consensus rating of “Hold” and an average price target of $147.00.

Applied Optoelectronics Trading Down 1.9%

The firm has a market capitalization of $6.49 billion, a price-to-earnings ratio of -98.38 and a beta of 3.85. The business’s 50 day moving average price is $109.30 and its 200-day moving average price is $133.19. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates 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 firm had revenue of $191.92 million during the quarter, compared to the consensus estimate of $190.48 million. During the same quarter last year, the firm earned ($0.16) earnings per share. The firm’s 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. Equities analysts forecast that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other Applied Optoelectronics news, insider Hung-Lun Chang sold 32,172 shares of the stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total value of $3,545,676.12. Following the completion of the transaction, the insider owned 249,276 shares in the company, valued at approximately $27,472,707.96. This represents a 11.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Stefan J. Murry sold 4,000 shares of the firm’s stock in a transaction on Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the completion of the sale, the chief financial officer directly owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. This trade represents a 1.09% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 56,887 shares of company stock valued at $6,581,484. Corporate insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several institutional investors have recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in shares of Applied Optoelectronics in the 2nd quarter valued at about $955,672,000. Renaissance Technologies LLC acquired a new stake in shares of Applied Optoelectronics in the first quarter valued at about $47,817,000. William Blair Investment Management LLC acquired a new stake in shares of Applied Optoelectronics in the second quarter valued at about $74,703,000. Bank of America Corp DE purchased a new stake in Applied Optoelectronics during the second quarter worth about $33,712,000. Finally, Bank of New York Mellon Corp purchased a new stake in Applied Optoelectronics during the second quarter worth about $32,567,000. 61.70% of the stock is currently owned by hedge funds and other institutional investors.

About Applied Optoelectronics

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.