Applied Optoelectronics (NASDAQ:AAOI) Shares Down 9.7% - Here's Why

Key Points

• Applied Optoelectronics shares experienced a significant 9.7% drop in trading, falling to $30.52, with trading volume down 25% from average levels.
• Despite recent declines, analysts have varying ratings, with some raising price targets; the consensus rating is currently a "Hold" with a target price of $27.20.
• The company reported a quarterly loss of ($0.16) EPS, missing expectations, and has negative net margins, but revenue increased 137.9% year-over-year.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) was down 9.7% during trading on Tuesday . The stock traded as low as $31.00 and last traded at $30.52. Approximately 3,415,348 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 4,532,917 shares. The stock had previously closed at $33.79.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on AAOI shares. Rosenblatt Securities raised their price objective on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a research note on Thursday, June 26th. Weiss Ratings reissued a "sell (d-)" rating on shares of Applied Optoelectronics in a report on Saturday, September 27th. Raymond James Financial upped their price objective on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. Wolfe Research began coverage on Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating on the stock. Finally, Wall Street Zen cut Applied Optoelectronics from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $27.20.

Applied Optoelectronics Stock Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.47 and a current ratio of 2.11. The firm has a 50 day moving average price of $25.10 and a two-hundred day moving average price of $20.96. The company has a market capitalization of $1.95 billion, a P/E ratio of -9.29 and a beta of 2.92.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The semiconductor company reported ($0.16) 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 during the quarter, compared to analyst estimates of $104.96 million. During the same period in the prior year, the firm earned ($0.28) EPS. Applied Optoelectronics's quarterly 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. On average, research analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, Director Min-Chu (Mike) Chen bought 7,500 shares of Applied Optoelectronics stock in a transaction dated Wednesday, August 13th. The shares were acquired at an average cost of $22.91 per share, with a total value of $171,825.00. Following the acquisition, the director directly owned 22,500 shares of the company's stock, valued at $515,475. The trade was a 50.00% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director William H. Yeh purchased 4,000 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The shares were acquired at an average cost of $21.40 per share, with a total value of $85,600.00. Following the completion of the acquisition, the director directly owned 253,819 shares in the company, valued at approximately $5,431,726.60. This represents a 1.60% 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 30,784 shares worth $709,117. Company insiders own 4.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in AAOI. California State Teachers Retirement System grew its holdings in Applied Optoelectronics by 4.4% during the 4th quarter. California State Teachers Retirement System now owns 36,471 shares of the semiconductor company's stock worth $1,344,000 after acquiring an additional 1,524 shares during the last quarter. GAMMA Investing LLC lifted its position in shares of Applied Optoelectronics by 9,789.9% during the first quarter. GAMMA Investing LLC now owns 14,736 shares of the semiconductor company's stock worth $2,260,000 after purchasing an additional 14,587 shares in the last quarter. SG Americas Securities LLC bought a new stake in shares of Applied Optoelectronics during the first quarter valued at approximately $370,000. Assenagon Asset Management S.A. increased its holdings in shares of Applied Optoelectronics by 182.7% in the first quarter. Assenagon Asset Management S.A. now owns 976,520 shares of the semiconductor company's stock valued at $14,990,000 after purchasing an additional 631,128 shares in the last quarter. Finally, Bank of New York Mellon Corp raised its position in Applied Optoelectronics by 3.5% in the 1st quarter. Bank of New York Mellon Corp now owns 129,490 shares of the semiconductor company's stock worth $1,988,000 after purchasing an additional 4,359 shares during the last quarter. 61.72% of the stock is owned by institutional investors.

About Applied Optoelectronics

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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