Applied Optoelectronics (NASDAQ:AAOI) Receives Buy Rating from Rosenblatt Securities

Rosenblatt Securities reaffirmed their buy rating on shares of Applied Optoelectronics (NASDAQ:AAOI) in a research report report published on Friday,Benzinga reports. Rosenblatt Securities currently has a $220.00 price objective on the semiconductor company’s stock.

Other analysts have also issued research reports about the stock. Raymond James Financial reaffirmed an “outperform” rating on shares of Applied Optoelectronics in a research report on Wednesday, June 10th. Wall Street Zen cut Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Monday, April 13th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Tuesday, July 7th. Finally, Needham & Company LLC reduced their target price on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research report on Friday. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $134.00.

Applied Optoelectronics Stock Up 9.2%

Applied Optoelectronics stock opened at $135.63 on Friday. The company has a market capitalization of $10.88 billion, a PE ratio of -173.88 and a beta of 3.76. Applied Optoelectronics has a 12-month low of $18.50 and a 12-month high of $233.67. The firm’s fifty day moving average is $137.34 and its 200 day moving average is $118.14. 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 announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.02 by $0.04. Applied Optoelectronics had a negative return on equity of 2.52% and a negative net margin of 9.57%.The business had revenue of $191.92 million for the quarter, compared to analyst estimates of $190.48 million. During the same quarter in the prior year, the company earned ($0.16) earnings per share. The company’s quarterly 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. As a group, sell-side analysts predict that Applied Optoelectronics will post 0.6 EPS 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 value of $6,880,127.40. Following the transaction, the insider owned 286,124 shares in the company, valued at approximately $48,812,754.40. The trade was a 12.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. Murry sold 33,000 shares of the business’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total value of $5,717,580.00. Following the completion of the sale, the chief financial officer directly owned 451,906 shares of the company’s stock, valued at approximately $78,297,233.56. This trade represents a 6.81% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 506,215 shares of company stock worth $87,409,447 over the last 90 days. Insiders own 3.80% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Large investors have recently bought and sold shares of the stock. Citizens Financial Group Inc. RI purchased a new stake in shares of Applied Optoelectronics during the second quarter valued at approximately $1,675,000. BlackRock Inc. bought a new position in shares of Applied Optoelectronics in the second quarter worth approximately $955,672,000. Deutsche Bank AG purchased a new position in shares of Applied Optoelectronics in the second quarter worth $7,516,000. Perigon Wealth Management LLC purchased a new position in shares of Applied Optoelectronics in the second quarter worth $208,000. Finally, Rice Hall James & Associates LLC bought a new stake in Applied Optoelectronics during the 2nd quarter valued at $8,263,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

More Applied Optoelectronics News

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: Q2 results exceeded expectations: Applied Optoelectronics reported adjusted EPS of $0.06 versus consensus estimates near $0.02–$0.03. Revenue reached approximately $191.9 million, ahead of estimates and up about 86% year over year from $103 million. Applied Optoelectronics Q2 Earnings Beat Estimates, Revenues Up Y/Y
• Positive Sentiment: AI datacenter demand is accelerating: Growth was driven by datacenter products, including rapidly expanding 800G optical transceivers. Management is also increasing capacity for 800G and 1.6T products, with demand reportedly exceeding available supply through at least mid-2027. AAOI Q2 Earnings Call Focuses on Capacity-Led 800G Ramp
• Positive Sentiment: Analyst support and industry momentum helped sentiment: Rosenblatt Securities reaffirmed its “buy” rating and assigned a $220 price target. Photonics and optics companies also benefited from strong sector earnings and expectations that potential U.S. restrictions on Chinese optical-transceiver imports could reduce overseas competition. Benzinga analyst rating report
• Neutral Sentiment: Expansion is being limited by supply: Management said it could sell more products if it had greater manufacturing capacity. Component shortages are expected to constrain near-term growth, even as they demonstrate strong underlying demand. Applied Optoelectronics says it could sell more if it could make more
• Negative Sentiment: Q3 profit guidance disappointed: The company forecast EPS of $0.11–$0.26, below the roughly $0.27 analyst consensus, although projected revenue of $255 million–$290 million brackets consensus near $265.7 million. Analysts also flagged competition, a setback in 100G products and valuation concerns after the stock’s substantial rally. Applied Optoelectronics slides amid mixed Q2 results and guidance

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.