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

Key Points

• Applied Optoelectronics, Inc. (NASDAQ:AAOI) has an average analyst recommendation of "Hold," with one sell rating, two hold ratings, and four buy ratings among seven brokerages.
• The company's stock has seen a significant price target increase; Raymond James raised its target from $18.00 to $25.00, while B. Riley set a new target of $15.00.
• Recently, insider activity included Director William H. Yeh purchasing 4,000 shares and CFO Stefan J. Murry selling 12,000 shares, reflecting notable confidence and caution within the management regarding the stock's performance.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) has received an average recommendation of "Hold" from the seven brokerages that are presently covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, two have assigned a hold rating and four have issued a buy rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $27.20.

AAOI has been the topic of a number of recent research reports. Raymond James Financial boosted their price objective on Applied Optoelectronics from $18.00 to $25.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. Wall Street Zen lowered Applied Optoelectronics from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Optoelectronics in a research note on Wednesday, October 8th. Wolfe Research initiated coverage on Applied Optoelectronics in a research note on Tuesday, July 8th. They set a "peer perform" rating on the stock. Finally, B. Riley reissued a "neutral" rating and set a $15.00 price objective (up previously from $13.00) on shares of Applied Optoelectronics in a research note on Friday, August 8th.

Applied Optoelectronics Stock Performance

Shares of NASDAQ:AAOI opened at $31.92 on Friday. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.11 and a quick ratio of 1.47. The business's 50 day moving average price is $26.59 and its 200-day moving average price is $21.69. The firm has a market capitalization of $1.99 billion, a PE ratio of -9.50 and a beta of 2.92. Applied Optoelectronics has a 1 year low of $9.71 and a 1 year high of $44.50.

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

Insider Buying and Selling

In other Applied Optoelectronics news, Director William H. Yeh bought 4,000 shares of Applied Optoelectronics stock in a transaction on Thursday, August 14th. The shares were bought at an average price of $21.40 per share, for a total transaction of $85,600.00. Following the completion of the transaction, the director directly owned 253,819 shares of the company's stock, valued at $5,431,726.60. This trade represents a 1.60% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Stefan J. Murry sold 12,000 shares of Applied Optoelectronics stock in a transaction on Friday, August 15th. The shares were sold at an average price of $22.37, for a total value of $268,440.00. Following the completion of the sale, the chief financial officer owned 298,477 shares in the company, valued at $6,676,930.49. This represents a 3.87% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have bought 44,100 shares of company stock valued at $1,000,878. 4.50% of the stock is currently owned by company insiders.

Institutional Trading of Applied Optoelectronics

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AAOI. Nisa Investment Advisors LLC raised its position in Applied Optoelectronics by 497.5% in 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 during the period. AlphaQuest LLC raised its holdings in shares of Applied Optoelectronics by 243.9% in the 1st quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock valued at $35,000 after buying an additional 1,629 shares during the period. GAMMA Investing LLC raised its holdings in shares of Applied Optoelectronics by 85.9% in the 2nd quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock valued at $46,000 after buying an additional 825 shares during the period. Pinpoint Asset Management Singapore Pte. Ltd. purchased a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at $49,000. Finally, CWM LLC raised its holdings in shares of Applied Optoelectronics by 175.5% in the 2nd quarter. CWM LLC now owns 2,218 shares of the semiconductor company's stock valued at $57,000 after buying an additional 1,413 shares during the period. Hedge funds and other institutional investors own 61.72% of the company's stock.

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.

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