Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 5.1% – Still a Buy?

Applied Optoelectronics, Inc. (NASDAQ:AAOIGet Free Report) rose 5.1% during mid-day trading on Tuesday . The company traded as high as $114.39 and last traded at $112.9060. Approximately 2,577,742 shares were traded during trading, a decline of 71% from the average daily volume of 8,739,835 shares. The stock had previously closed at $107.45.

Analyst Upgrades and Downgrades

AAOI has been the subject of a number of recent research reports. Rosenblatt Securities reissued a “buy” rating and set a $50.00 price target on shares of Applied Optoelectronics in a research report on Thursday, February 19th. Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Sunday. B. Riley Financial raised shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 price target for the company in a research report on Friday, February 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. Finally, Northland Securities reissued a “market perform” rating and set a $55.00 price target on shares of Applied Optoelectronics in a research report on Friday, February 27th. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Applied Optoelectronics has a consensus rating of “Hold” and an average price target of $52.80.

Get Our Latest Analysis on Applied Optoelectronics

Applied Optoelectronics Price Performance

The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.18. The firm has a market capitalization of $9.98 billion, a PE ratio of -204.15 and a beta of 3.23. The firm’s fifty day simple moving average is $78.50 and its 200-day simple moving average is $47.74.

Applied Optoelectronics (NASDAQ:AAOIGet Free Report) last issued its earnings results on Thursday, February 26th. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.11. The business had revenue of $134.27 million during the quarter, compared to analysts’ expectations of $131.56 million. Applied Optoelectronics had a negative net margin of 8.39% and a negative return on equity of 5.29%. The business’s revenue for the quarter was up 33.9% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.02) earnings per share. Applied Optoelectronics has set its Q1 2026 guidance at -0.090-0.000 EPS. On average, research analysts forecast that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Applied Optoelectronics news, insider Shu-Hua (Joshua) Yeh sold 50,000 shares of Applied Optoelectronics stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $97.10, for a total value of $4,855,000.00. Following the completion of the transaction, the insider directly owned 322,051 shares of the company’s stock, valued at approximately $31,271,152.10. The trade was a 13.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Cynthia Delaney sold 21,000 shares of Applied Optoelectronics stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $98.02, for a total transaction of $2,058,420.00. Following the completion of the transaction, the director directly owned 116,222 shares of the company’s stock, valued at $11,392,080.44. This trade represents a 15.30% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 326,333 shares of company stock valued at $29,392,957. 4.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in 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 buying an additional 358,090 shares during the last quarter. Invesco Ltd. raised its holdings in Applied Optoelectronics by 5,208.9% in the fourth quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock worth $122,439,000 after buying an additional 3,446,150 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in shares of Applied Optoelectronics by 5,321.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock worth $77,730,000 after acquiring an additional 2,188,630 shares during the period. Hawk Ridge Capital Management LP grew its stake in shares of Applied Optoelectronics by 106.2% in the fourth quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock worth $59,293,000 after acquiring an additional 875,903 shares during the period. Finally, Morgan Stanley grew its stake in shares of Applied Optoelectronics by 157.1% in the fourth quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock worth $59,257,000 after acquiring an additional 1,038,775 shares during the period. 61.70% of the stock is owned by hedge funds and other institutional investors.

About Applied Optoelectronics

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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.

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