Applied Optoelectronics (NASDAQ:AAOI) Trading Down 5.9% – What’s Next?

Applied Optoelectronics, Inc. (NASDAQ:AAOI) was down 5.9% during mid-day trading on Friday . The company traded as low as $38.55 and last traded at $38.60. Approximately 1,254,715 shares were traded during mid-day trading, a decline of 74% from the average daily volume of 4,735,812 shares. The stock had previously closed at $41.00.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Northland Securities set a $45.00 target price on shares of Applied Optoelectronics in a research report on Thursday, December 11th. Needham & Company LLC upped their price objective on Applied Optoelectronics from $38.00 to $43.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $50.00 target price on shares of Applied Optoelectronics in a research report on Friday, December 19th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. Finally, B. Riley reaffirmed a “sell” rating and issued a $15.00 price target on shares of Applied Optoelectronics in a research note on Monday, November 10th. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $35.60.

Applied Optoelectronics Trading Down 6.6%

The firm has a market capitalization of $2.62 billion, a price-to-earnings ratio of -11.90 and a beta of 3.25. The firm’s 50-day moving average is $29.39 and its 200 day moving average is $26.75. The company has a current ratio of 2.31, a quick ratio of 1.63 and a debt-to-equity ratio of 0.23.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Thursday, November 6th. The semiconductor company reported ($0.09) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.01. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%.The business had revenue of $118.63 million during the quarter, compared to the consensus estimate of $119.77 million. During the same period in the prior year, the business posted ($0.21) earnings per share. Applied Optoelectronics’s quarterly revenue was up 82.1% on a year-over-year basis. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. On average, equities analysts predict that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Applied Optoelectronics

Several large investors have recently modified their holdings of the company. CloudAlpha Capital Management Limited Hong Kong increased its stake in Applied Optoelectronics by 410.7% in the second quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company’s stock valued at $36,197,000 after purchasing an additional 1,133,115 shares in the last quarter. Chung Wu Investment Group LLC bought a new position in shares of Applied Optoelectronics during the 2nd quarter worth about $344,000. Sovereign Financial Group Inc. acquired a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at about $287,000. Allspring Global Investments Holdings LLC bought a new stake in Applied Optoelectronics in the 2nd quarter valued at about $7,201,000. Finally, Squarepoint Ops LLC acquired a new position in Applied Optoelectronics during the 2nd quarter worth approximately $4,283,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

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.