Applied Optoelectronics (NASDAQ:AAOI) Given New $115.00 Price Target at Rosenblatt Securities

Applied Optoelectronics (NASDAQ:AAOI) had its price objective lowered by Rosenblatt Securities from $220.00 to $115.00 in a report published on Friday,Benzinga reports. Rosenblatt Securities currently has a buy rating on the semiconductor company’s stock.

Other analysts have also recently issued reports about the company. B. Riley Financial lowered their target price on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a research note on Thursday, October 15th. Weiss Ratings upgraded shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, October 21st. Needham & Company LLC cut their price target on shares of Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Northland Securities raised shares of Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 price objective for the company in a research report on Monday, November 2nd. Four analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Applied Optoelectronics presently has a consensus rating of “Moderate Buy” and a consensus price target of $111.60.

Applied Optoelectronics Trading Up 6.9%

NASDAQ AAOI traded up $3.24 during trading on Friday, reaching $50.13. 21,665,772 shares of the stock traded hands, compared to its average volume of 12,628,997. The firm has a market cap of $4.24 billion, a price-to-earnings ratio of -116.58 and a beta of 4.04. The stock’s 50-day moving average price is $92.96 and its 200 day moving average price is $113.25. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. Applied Optoelectronics has a fifty-two week low of $18.50 and a fifty-two week high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Thursday, November 5th. The semiconductor company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.14 by $0.03. The firm had revenue of $269.88 million during the quarter, compared to the consensus estimate of $268.11 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The business’s quarterly revenue was up 127.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.09) earnings per share. Analysts predict that Applied Optoelectronics will post 0.55 EPS for the current year.

Insider Activity at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the sale, the chief financial officer directly owned 363,168 shares in the company, valued at $37,359,092.16. This trade represents a 1.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 the business’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the sale, the insider directly owned 249,276 shares in the company, valued at approximately $27,472,707.96. This represents a 11.43% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 52,172 shares of company stock valued at $5,985,036. 3.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Applied Optoelectronics

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. ACT Capital Partners L.P. acquired a new stake in shares of Applied Optoelectronics in the third quarter valued at about $1,191,000. William Blair Investment Management LLC boosted its holdings in shares of Applied Optoelectronics by 12.4% in the 3rd quarter. William Blair Investment Management LLC now owns 566,908 shares of the semiconductor company’s stock valued at $56,271,000 after buying an additional 62,706 shares during the last quarter. Ritholtz Wealth Management bought a new position in shares of Applied Optoelectronics in the third quarter valued at $476,000. Jacobi Capital Management LLC acquired a new position in Applied Optoelectronics during the third quarter worth $33,000. Finally, Knights of Columbus Asset Advisors LLC lifted its stake in Applied Optoelectronics by 1.1% in the third quarter. Knights of Columbus Asset Advisors LLC now owns 20,427 shares of the semiconductor company’s stock valued at $2,028,000 after acquiring an additional 221 shares during the last quarter. 61.70% of the stock is owned by institutional investors.

Key Applied Optoelectronics News

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

• Positive Sentiment: Third-quarter results beat estimates: adjusted earnings were $0.17 per share versus $0.14 expected, while revenue of $269.9 million rose 127.5% year over year. The company also reported a sixth consecutive quarter of record revenue and a return to GAAP profitability. Third-quarter results
• Positive Sentiment: Datacenter and CATV sales benefited from demand for 800G transceivers and record broadband equipment shipments. Management also cited accelerating demand for 1.6T products and a potential $1 billion–$1.5 billion hyperscaler deal, supporting the growth outlook. Q3 sales and demand
• Positive Sentiment: A rebound in AI optical stocks is providing a favorable sector backdrop, with investors revisiting recent earnings across the group. AI optical stocks rally
• Negative Sentiment: Fourth-quarter revenue guidance of $385 million–$420 million falls short of the $427.3 million consensus estimate, despite an EPS range that brackets expectations. Component shortages and delays ramping manufacturing capacity—including U.S. expansion issues—could limit the company’s ability to meet demand. Earnings call and capacity delays
• Negative Sentiment: Analysts lowered price targets: B. Riley cut its target to $45 and assigned a neutral rating, while Rosenblatt reduced its target to $115 but maintained a buy rating. The mixed revisions reflect uncertainty following the stock’s volatility. B. Riley analyst rating

About Applied Optoelectronics

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.