Applied Optoelectronics, Inc. (NASDAQ:AAOI) Receives Average Rating of "Hold" from Analysts

Key Points

• Applied Optoelectronics (NASDAQ:AAOI) has a consensus analyst rating of “Hold” from seven brokerages, with an average 12-month price target of $79.80. The coverage is mixed, with one sell, three hold, and three buy ratings.
• The company reported mixed quarterly results, missing EPS and revenue estimates even as revenue rose 51.3% year over year. It also issued Q2 2026 guidance of -$0.03 to $0.03 EPS.
• Insider selling has been notable, including large share sales by directors Elizabeth G. Loboa and Cynthia Delaney. In the last three months, insiders sold 515,899 shares worth about $69.8 million.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) has earned a consensus recommendation of "Hold" from the seven brokerages that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, three have given a hold recommendation and three have assigned a buy recommendation to the company. The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $79.80.

AAOI has been the subject of a number of research reports. Wall Street Zen cut Applied Optoelectronics from a "hold" rating to a "sell" rating in a research report on Monday, April 13th. Northland Securities reaffirmed a "market perform" rating and set a $55.00 price target on shares of Applied Optoelectronics in a research report on Friday, February 27th. Needham & Company LLC lifted their price target on Applied Optoelectronics from $43.00 to $80.00 and gave the stock a "buy" rating in a research report on Friday, February 27th. Raymond James Financial reaffirmed an "outperform" rating and set a $160.00 price target on shares of Applied Optoelectronics in a research report on Friday, May 8th. Finally, B. Riley Financial raised Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $54.00 price target for the company in a research report on Friday, February 27th.

Applied Optoelectronics Stock Down 6.3%

Applied Optoelectronics stock opened at $158.41 on Friday. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.83 and a quick ratio of 3.03. The stock has a market capitalization of $12.71 billion, a price-to-earnings ratio of -240.02 and a beta of 3.76. Applied Optoelectronics has a 1-year low of $15.06 and a 1-year high of $233.67. The business has a fifty day moving average price of $146.55 and a 200-day moving average price of $80.74.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.02). The business had revenue of $151.14 million during the quarter, compared to analyst estimates of $156.98 million. Applied Optoelectronics had a negative return on equity of 4.64% and a negative net margin of 8.55%.The firm's revenue for the quarter was up 51.3% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.02) EPS. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Equities research analysts forecast that Applied Optoelectronics will post 0.6 EPS for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, Director Elizabeth G. Loboa sold 102,347 shares of Applied Optoelectronics stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.76, for a total transaction of $9,800,748.72. Following the completion of the transaction, the director owned 20,523 shares in the company, valued at approximately $1,965,282.48. This trade represents a 83.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Cynthia Delaney sold 56,575 shares of Applied Optoelectronics stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $189.23, for a total value of $10,705,687.25. Following the transaction, the director owned 59,647 shares of the company's stock, valued at $11,287,001.81. The trade was a 48.68% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 515,899 shares of company stock worth $69,774,638. Insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On Applied Optoelectronics

Institutional investors have recently modified their holdings of the stock. Cinctive Capital Management LP purchased a new position in shares of Applied Optoelectronics during the 3rd quarter valued at about $800,000. Diker Management LLC purchased a new position in shares of Applied Optoelectronics during the 3rd quarter valued at about $519,000. Vanguard Group Inc. raised its stake in shares of Applied Optoelectronics by 13.6% during the 3rd quarter. Vanguard Group Inc. now owns 4,624,570 shares of the semiconductor company's stock valued at $119,915,000 after buying an additional 551,910 shares during the last quarter. AI Squared Management Ltd purchased a new position in shares of Applied Optoelectronics during the 3rd quarter valued at about $5,043,000. Finally, Trilogy Capital Inc. purchased a new position in shares of Applied Optoelectronics during the 4th quarter valued at about $235,000. Hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.