Applied Optoelectronics, Inc. (NASDAQ:AAOI) Receives Consensus Recommendation of “Hold” from Brokerages

Applied Optoelectronics, Inc. (NASDAQ:AAOI) has been assigned an average rating of “Hold” from the seven brokerages that are covering the company, Marketbeat.com reports. Two research analysts have rated the stock with a sell rating, one has issued a hold rating and four have issued a buy rating on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $35.60.

AAOI has been the subject of a number of recent research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, January 21st. B. Riley Financial reaffirmed a “sell” rating and issued a $15.00 price target on shares of Applied Optoelectronics in a report on Monday, November 10th. Northland Securities set a $45.00 price objective on Applied Optoelectronics in a research note on Thursday, December 11th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $50.00 price objective on shares of Applied Optoelectronics in a research note on Thursday, February 19th. Finally, Needham & Company LLC lifted their target price on Applied Optoelectronics from $38.00 to $43.00 and gave the stock a “buy” rating in a report on Thursday, December 11th.

More Applied Optoelectronics News

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

• Positive Sentiment: Q4 beat on EPS and revenue: AAOI reported a loss of $0.01/share versus a consensus loss of $0.12 and revenue of $134.27M (up 33.9% YoY), beating analyst estimates. Applied Optoelectronics Q4 results / MarketBeat
• Positive Sentiment: Revenue guidance lifted above consensus: management set Q1 FY2026 revenue guidance of $150M–$165M vs. a $145.6M consensus, signaling stronger demand for optical products. Applied Optoelectronics surges on Q4 beat, strong revenue outlook
• Neutral Sentiment: Official press release with full results and financial tables posted for Q4 and FY2025. Useful for modeling but reiterates the same mixed datapoints. Applied Optoelectronics Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Company hosted a conference call; replay/transcript available for additional color on demand drivers and margin cadence. Q4 press release / transcript
• Negative Sentiment: Q1 EPS guidance below Street: AAOI guided to EPS of -$0.090 to $0.000 vs. a -$0.070 consensus, introducing near‑term earnings risk despite decent revenue guidance. Applied Optoelectronics Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Company remains unprofitable on the quarter (net margin ≈ -37%, negative ROE) and some research/analyst notes show continued negative EPS outlook for the year, which caps valuation upside. Applied Optoelectronics: Q4 Earnings Snapshot
• Negative Sentiment: At least one outlet flagged weaker revenue versus its model (Zacks), highlighting that some estimates vary and reports are mixed — increasing short‑term volatility. Applied Optoelectronics (AAOI) Reports Q4 Loss, Lags Revenue Estimates

Applied Optoelectronics Trading Down 7.6%

AAOI stock opened at $53.69 on Friday. The firm has a fifty day moving average price of $41.10 and a 200 day moving average price of $32.15. Applied Optoelectronics has a fifty-two week low of $9.71 and a fifty-two week high of $59.25. The firm has a market cap of $3.67 billion, a PE ratio of -16.67 and a beta of 3.32. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 2.31.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 11,693 shares of the business’s stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $50.25, for a total transaction of $587,573.25. Following the transaction, the chief financial officer owned 290,050 shares in the company, valued at $14,575,012.50. The trade was a 3.88% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider David C. Kuo sold 17,467 shares of the firm’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $50.17, for a total transaction of $876,319.39. Following the completion of the sale, the insider owned 111,663 shares of the company’s stock, valued at $5,602,132.71. This trade represents a 13.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 66,520 shares of company stock valued at $3,080,367 over the last ninety days. 4.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of AAOI. Invesco Ltd. raised its holdings in shares of 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 period. XTX Topco Ltd grew its position in Applied Optoelectronics by 167.6% in the 4th quarter. XTX Topco Ltd now owns 24,771 shares of the semiconductor company’s stock valued at $864,000 after acquiring an additional 15,513 shares during the last quarter. SummitTX Capital L.P. purchased a new stake in Applied Optoelectronics in the fourth quarter worth $254,000. Quadrature Capital Ltd bought a new stake in shares of Applied Optoelectronics during the fourth quarter worth $1,453,000. Finally, Millennium Management LLC bought a new stake in shares of Applied Optoelectronics during the fourth quarter worth $358,000. 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.