Rosenblatt Securities Issues Positive Forecast for Applied Optoelectronics (NASDAQ:AAOI) Stock Price

Applied Optoelectronics (NASDAQ:AAOI) had its target price raised by Rosenblatt Securities from $50.00 to $125.00 in a research note issued on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the semiconductor company’s stock. Rosenblatt Securities’ target price would suggest a potential upside of 52.44% from the company’s current price.

Several other research analysts also recently commented on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, January 21st. Needham & Company LLC lifted their price target on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the company a “buy” rating in a research report on Friday. Northland Securities reiterated a “market perform” rating and set a $55.00 price objective on shares of Applied Optoelectronics in a research note on Friday. Finally, B. Riley Financial upgraded Applied Optoelectronics from a “sell” rating to a “neutral” rating and lifted their price target for the company from $15.00 to $54.00 in a research note on Friday. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Applied Optoelectronics has a consensus rating of “Hold” and a consensus price target of $67.80.

Applied Optoelectronics Stock Up 52.7%

Applied Optoelectronics stock traded up $28.31 during mid-day trading on Friday, reaching $82.00. The company’s stock had a trading volume of 21,112,273 shares, compared to its average volume of 5,524,961. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 2.31. Applied Optoelectronics has a 12 month low of $9.71 and a 12 month high of $82.31. The business’s 50 day simple moving average is $41.10 and its 200 day simple moving average is $32.15. The company has a market capitalization of $5.60 billion, a price-to-earnings ratio of -25.47 and a beta of 3.32.

Insider Activity

In other news, insider David C. Kuo sold 17,467 shares of the business’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $50.17, for a total value of $876,319.39. Following the transaction, the insider directly owned 111,663 shares of the company’s stock, valued at $5,602,132.71. The trade was a 13.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Stefan J. Murry sold 11,693 shares of the stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $50.25, for a total value 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 disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 66,520 shares of company stock valued at $3,080,367. Corporate insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

Several large investors have recently bought and sold shares of the stock. Nisa Investment Advisors LLC lifted its position in shares of Applied Optoelectronics by 497.5% during the second quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 801 shares in the last quarter. Allworth Financial LP increased its stake in Applied Optoelectronics by 1,923.7% in the 4th quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock valued at $27,000 after buying an additional 731 shares during the last quarter. Comerica Bank purchased a new stake in Applied Optoelectronics in the 3rd quarter valued at about $28,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Applied Optoelectronics by 166.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after buying an additional 750 shares in the last quarter. Finally, Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $49,000. 61.70% of the stock is currently owned by institutional investors.

Key Applied Optoelectronics News

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

• Positive Sentiment: Q4 beat and strong top-line performance — AAOI reported Q4 EPS of ($0.01) versus consensus ($0.12) and revenue of $134.3M (up ~34% YoY), and management commentary/earnings call signaled robust demand, which triggered the rally. AAOI’s 10x Moment: $456M in 2025, $378M Per Month by Next Year
• Positive Sentiment: Official results and outlook — The company’s press release and filings reiterated the stronger revenue trajectory and provided a view that revenue momentum should continue, reinforcing investor confidence. Applied Optoelectronics Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Analyst lift from Needham — Needham raised its price target to $80 and kept a “buy” rating, providing direct analyst support that likely helped push sentiment higher. Needham raises PT to $80
• Neutral Sentiment: Q1 guidance is mixed — management guided Q1 revenue $150–$165M (above consensus ~$145.6M) but gave EPS guidance of -$0.09 to $0.00 versus a consensus of -$0.07; revenue strength is supportive while EPS range leaves some uncertainty. Q4 press release / guidance
• Neutral Sentiment: B. Riley upgraded the stock to “neutral” from “sell” and lifted its price target to $54 (upgrade signals reduced pessimism but the PT implies downside versus current levels). B. Riley upgrade
• Negative Sentiment: Some analyst targets remain well below current prices — Northland reaffirmed “market perform” with a $55 target, a reminder that not all analysts are convinced the rally is fully priced in and that downside risk is perceived by some. Finviz – Northland reaffirmation
• Neutral Sentiment: Short-interest data appears noisy/insufficient — recent reports show anomalous zero-share short-interest figures, which are not reliable signals for current positioning. Market data / short interest

About Applied Optoelectronics

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.