Applied Optoelectronics, Inc. (NASDAQ:AAOI) Receives $113.80 Consensus Target Price from Analysts

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) have been given a consensus rating of “Hold” by the seven analysts that are currently covering the stock, MarketBeat Ratings reports. One research analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and three have given a buy recommendation to the company. The average 12 month price objective among brokers that have updated their coverage on the stock in the last year is $113.80.

Several equities analysts recently commented on AAOI shares. Wall Street Zen cut shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Monday, April 13th. Rosenblatt Securities reiterated a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research note on Monday, June 22nd. Finally, Raymond James Financial restated an “outperform” rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th.

Applied Optoelectronics Price Performance

NASDAQ AAOI opened at $150.10 on Thursday. The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18. The company has a fifty day simple moving average of $169.71 and a 200 day simple moving average of $102.72. The company has a market cap of $12.04 billion, a P/E ratio of -227.42 and a beta of 3.67. Applied Optoelectronics has a 1 year low of $18.50 and a 1 year high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02). The firm had revenue of $151.14 million for the quarter, compared to the consensus estimate of $156.98 million. Applied Optoelectronics had a negative return on equity of 4.64% and a negative net margin of 8.55%.Applied Optoelectronics’s quarterly revenue was up 51.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.02) earnings per share. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. On average, sell-side analysts predict that Applied Optoelectronics will post 0.6 EPS for the current year.

Insider Buying and Selling

In related news, insider Shu-Hua (Joshua) Yeh sold 39,154 shares of the stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total transaction of $6,783,822.04. Following the completion of the sale, the insider owned 462,430 shares in the company, valued at $80,120,621.80. This trade represents a 7.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.53, for a total transaction of $9,825,270.00. Following the sale, the chief executive officer owned 1,302,436 shares of the company’s stock, valued at $216,894,667.08. This trade represents a 4.33% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 500,215 shares of company stock worth $86,716,414. Insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

A number of hedge funds have recently added to or reduced their stakes in AAOI. Invesco Ltd. grew its holdings in Applied Optoelectronics by 5,208.9% during the 4th quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock worth $122,439,000 after acquiring an additional 3,446,150 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Applied Optoelectronics by 5,321.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock valued at $77,730,000 after purchasing an additional 2,188,630 shares during the last quarter. Morgan Stanley boosted its stake in shares of Applied Optoelectronics by 157.1% in the 4th quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock valued at $59,257,000 after purchasing an additional 1,038,775 shares during the last quarter. Hawk Ridge Capital Management LP boosted its stake in shares of Applied Optoelectronics by 106.2% in the 4th quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock valued at $59,293,000 after purchasing an additional 875,903 shares during the last quarter. Finally, Artemis Investment Management LLP bought a new position in shares of Applied Optoelectronics in the 4th quarter valued at about $26,923,000. 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.