Analysts Set Applied Optoelectronics, Inc. (NASDAQ:AAOI) PT at $27.20

Key Points

• Applied Optoelectronics, Inc. (NASDAQ:AAOI) has a consensus recommendation of "Moderate Buy" from six brokerages, with a 12-month average target price of $27.20.
• The company recently reported a net loss of ($0.16) earnings per share, missing expectations and showing a year-over-year revenue increase of 137.9%.
• Insider transactions indicate confidence in the company, with directors purchasing a total of 11,500 shares recently, increasing their ownership stakes significantly.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) has earned a consensus rating of "Moderate Buy" from the six analysts that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $27.20.

A number of equities analysts have issued reports on AAOI shares. Wolfe Research started coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. Rosenblatt Securities increased their price target on Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. B. Riley reaffirmed a "neutral" rating and set a $15.00 price target (up from $13.00) on shares of Applied Optoelectronics in a research report on Friday, August 8th. Needham & Company LLC began coverage on shares of Applied Optoelectronics in a research note on Friday, July 25th. They set a "buy" rating and a $32.00 price objective on the stock. Finally, Wall Street Zen cut shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th.

Insider Buying and Selling at Applied Optoelectronics

In other news, CFO Stefan J. Murry sold 12,000 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $22.37, for a total transaction of $268,440.00. Following the sale, the chief financial officer owned 298,477 shares of the company's stock, valued at $6,676,930.49. This trade represents a 3.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Min-Chu (Mike) Chen acquired 7,500 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were purchased at an average cost of $22.91 per share, for a total transaction of $171,825.00. Following the purchase, the director directly owned 22,500 shares in the company, valued at approximately $515,475. This trade represents a 50.00% increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last ninety days, insiders have acquired 44,100 shares of company stock worth $1,000,878 and have sold 32,784 shares worth $741,217. Company insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. SG Americas Securities LLC purchased a new position in shares of Applied Optoelectronics during the 1st quarter valued at approximately $370,000. Royce & Associates LP lifted its position in shares of Applied Optoelectronics by 15.2% during the 1st quarter. Royce & Associates LP now owns 876,543 shares of the semiconductor company's stock valued at $13,455,000 after buying an additional 115,853 shares in the last quarter. China Universal Asset Management Co. Ltd. lifted its position in shares of Applied Optoelectronics by 31.1% during the 1st quarter. China Universal Asset Management Co. Ltd. now owns 40,000 shares of the semiconductor company's stock valued at $614,000 after buying an additional 9,500 shares in the last quarter. Swiss National Bank lifted its position in shares of Applied Optoelectronics by 15.4% during the 1st quarter. Swiss National Bank now owns 88,200 shares of the semiconductor company's stock valued at $1,354,000 after buying an additional 11,800 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in shares of Applied Optoelectronics by 1,058.6% during the 4th quarter. Bank of America Corp DE now owns 339,550 shares of the semiconductor company's stock valued at $12,516,000 after buying an additional 310,243 shares in the last quarter. Hedge funds and other institutional investors own 61.72% of the company's stock.

Applied Optoelectronics Stock Down 5.1%

Shares of AAOI traded down $1.29 during mid-day trading on Friday, hitting $24.20. 3,695,546 shares of the company traded hands, compared to its average volume of 5,706,557. Applied Optoelectronics has a 1-year low of $9.13 and a 1-year high of $44.50. The company has a quick ratio of 1.47, a current ratio of 2.11 and a debt-to-equity ratio of 0.36. The company has a market capitalization of $1.51 billion, a PE ratio of -7.20 and a beta of 2.72. The business has a 50 day moving average of $25.18 and a 200 day moving average of $19.99.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The company had revenue of $102.95 million for the quarter, compared to analyst estimates of $104.96 million. During the same quarter last year, the company earned ($0.28) EPS. The business's revenue was up 137.9% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. Equities research analysts anticipate that Applied Optoelectronics will post -1.18 EPS for the current year.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.