Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 7.6% – What’s Next?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) dropped 7.6% during mid-day trading on Monday . The stock traded as low as $110.09 and last traded at $110.8070. 1,186,543 shares were traded during trading, a decline of 89% from the average session volume of 10,513,644 shares. The stock had previously closed at $119.92.

Analyst Ratings Changes

Several brokerages have recently weighed in on AAOI. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Tuesday, July 7th. Wall Street Zen lowered Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. Raymond James Financial reissued an “outperform” rating on shares of Applied Optoelectronics in a report on Wednesday, June 10th. Finally, Rosenblatt Securities restated a “buy” rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Monday, June 22nd. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $113.80.

Applied Optoelectronics Stock Performance

The firm’s 50-day moving average price is $162.85 and its two-hundred day moving average price is $109.69. The firm has a market capitalization of $10.07 billion, a PE ratio of -190.08 and a beta of 3.69. The company has a quick ratio of 3.03, a current ratio of 3.83 and a debt-to-equity ratio of 0.18.

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

Insider Buying and Selling

In other news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $9,825,270.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $170.60, for a total value of $6,880,127.40. Following the transaction, the insider owned 286,124 shares in the company, valued at $48,812,754.40. This represents a 12.35% decrease in their position. 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 three months, insiders have sold 500,215 shares of company stock valued at $86,658,774. 3.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Applied Optoelectronics

Several institutional investors and hedge funds have recently bought and sold shares of AAOI. Vanguard Group Inc. lifted its position in shares of Applied Optoelectronics by 7.7% in the fourth quarter. Vanguard Group Inc. now owns 4,982,660 shares of the semiconductor company’s stock worth $173,696,000 after purchasing an additional 358,090 shares in the last quarter. Invesco Ltd. increased its stake in Applied Optoelectronics by 5,208.9% in the 4th quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock valued at $122,439,000 after buying an additional 3,446,150 shares during the period. Price T Rowe Associates Inc. MD lifted its position in 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 worth $77,730,000 after buying an additional 2,188,630 shares in the last quarter. Hawk Ridge Capital Management LP lifted its position in 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 worth $59,293,000 after buying an additional 875,903 shares in the last quarter. Finally, Morgan Stanley boosted its stake in shares of Applied Optoelectronics by 157.1% during the 4th quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock valued at $59,257,000 after buying an additional 1,038,775 shares during the period. Hedge funds and other 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.