Applied Optoelectronics (NASDAQ:AAOI) Stock Price Target Lowered at Needham & Company LLC

Key Points

• Needham lowered Applied Optoelectronics’ price target from $190 to $170 but maintained a “buy” rating, implying 136.31% potential upside from the stock’s $71.94 price.
• Analyst sentiment is mixed: the stock has an overall “Hold” rating and an average target price of $143, based on three Buy, two Hold, and one Sell recommendation.
• Applied Optoelectronics reported quarterly EPS of $0.06, exceeding estimates of $0.02, while revenue rose 86.3% year over year to $191.92 million; insiders have sold 56,887 shares worth $6.58 million over the past 90 days.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) had its price objective reduced by equities research analysts at Needham & Company LLC from $190.00 to $170.00 in a research note issued to investors on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's target price suggests a potential upside of 136.31% from the stock's current price.

Other research analysts also recently issued reports about the company. Weiss Ratings upgraded Applied Optoelectronics from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, October 21st. B. Riley Financial lowered their target price on Applied Optoelectronics from $109.00 to $92.00 and set a "neutral" rating on the stock in a report on Thursday, October 15th. Wall Street Zen raised Applied Optoelectronics from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Raymond James Financial reaffirmed an "outperform" rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $143.00.

Applied Optoelectronics Stock Performance

NASDAQ:AAOI opened at $71.94 on Tuesday. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The firm has a 50-day moving average price of $103.36 and a two-hundred day moving average price of $111.90. Applied Optoelectronics has a twelve month low of $18.50 and a twelve month high of $233.67. The company has a market capitalization of $6.08 billion, a P/E ratio of -92.23 and a beta of 3.85.

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

Insider Buying and Selling

In other Applied Optoelectronics news, 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 value of $3,545,676.12. Following the completion of the transaction, the insider directly owned 249,276 shares in the company, valued at approximately $27,472,707.96. The trade was a 11.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Stefan J. Murry sold 4,000 shares of the stock in a transaction on Monday, October 12th. The stock was sold at an average price of $102.87, for a total value of $411,480.00. Following the transaction, the chief financial officer directly owned 363,168 shares in the company, valued at approximately $37,359,092.16. This represents a 1.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 56,887 shares of company stock worth $6,581,484. 3.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Applied Optoelectronics

A number of hedge funds have recently made changes to their positions in the stock. Geneos Wealth Management Inc. increased its position in shares of Applied Optoelectronics by 1.4% during the first quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company's stock worth $1,529,000 after acquiring an additional 243 shares during the last quarter. Allworth Financial LP grew its stake in Applied Optoelectronics by 68.8% in the second quarter. Allworth Financial LP now owns 596 shares of the semiconductor company's stock worth $88,000 after purchasing an additional 243 shares in the last quarter. Polaris Financial Partners acquired a new position in Applied Optoelectronics in the third quarter worth about $26,000. EFG International AG bought a new stake in Applied Optoelectronics in the second quarter valued at about $44,000. Finally, Persistent Asset Partners Ltd bought a new stake in Applied Optoelectronics in the second quarter valued at about $47,000. Institutional investors and hedge funds own 61.70% of the company's stock.

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.

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