Applied Optoelectronics (NASDAQ:AAOI) Stock Falls 7.3% – What’s Next?

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) dropped 7.3% during trading on Wednesday. The company traded as low as $57.24 and last traded at $59.27. 15,506,996 shares changed hands during trading, an increase of 48% from the average session volume of 10,485,362 shares. The stock had previously closed at $63.97.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on AAOI. Weiss Ratings upgraded Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, October 21st. Needham & Company LLC decreased their price target on Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating for the company in a research note on Tuesday, October 27th. Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. B. Riley Financial cut their price objective on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a research report on Thursday, October 15th. Finally, Northland Securities upgraded Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a research note on Monday. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $156.00.

Applied Optoelectronics Price Performance

The firm has a 50 day simple moving average of $96.64 and a 200-day simple moving average of $113.03. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. The company has a market cap of $5.01 billion, a PE ratio of -75.99 and a beta of 4.04.

Applied Optoelectronics (NASDAQ:AAOI) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.02 by $0.04. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The company had revenue of $191.92 million during the quarter, compared to the consensus estimate of $190.48 million. During the same period last year, the firm earned ($0.16) earnings per share. Applied Optoelectronics’s revenue was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, research analysts predict that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 4,000 shares of the business’s stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total value of $411,480.00. Following the completion of the transaction, the chief financial officer owned 363,168 shares of the company’s stock, valued at $37,359,092.16. The trade was a 1.09% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total value of $3,545,676.12. Following the transaction, the insider owned 249,276 shares of the company’s stock, valued at approximately $27,472,707.96. This represents a 11.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 52,172 shares of company stock worth $5,985,036 over the last quarter. Insiders own 3.80% of the company’s stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several hedge funds have recently bought and sold shares of AAOI. BlackRock Inc. acquired a new stake in Applied Optoelectronics during the second quarter valued at $955,672,000. William Blair Investment Management LLC purchased a new position in Applied Optoelectronics in the second quarter valued at $74,703,000. Renaissance Technologies LLC purchased a new position in Applied Optoelectronics in the first quarter valued at $47,817,000. Bank of America Corp DE acquired a new position in shares of Applied Optoelectronics in the second quarter worth about $33,712,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Applied Optoelectronics in the second quarter worth about $32,567,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.