Applied Optoelectronics (NASDAQ:AAOI) Shares Up 7.3% - Here's Why

Key Points

• Applied Optoelectronics shares rose 7.3% to about $145.56, with trading volume below the stock’s average session volume.
• The company reported quarterly EPS of $0.06, beating estimates by $0.04, while revenue reached $191.92 million—up 86.3% year over year and slightly above expectations.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $134; insiders sold approximately $87.4 million in stock last quarter, while institutional investors own 61.7% of shares.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares shot up 7.3% on Monday . The company traded as high as $148.53 and last traded at $145.5630. Approximately 5,050,581 shares were traded during mid-day trading, a decline of 52% from the average session volume of 10,592,223 shares. The stock had previously closed at $135.63.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Optoelectronics in a research report on Tuesday, July 7th. Rosenblatt Securities reissued a "buy" rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday. B. Riley Financial reaffirmed a "neutral" rating on shares of Applied Optoelectronics in a report on Friday. Needham & Company LLC decreased their price target on shares of Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating on the stock in a research note on Friday. Finally, Raymond James Financial set a $151.00 price target on shares of Applied Optoelectronics in a report on Friday. Three equities research 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. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $134.00.

Applied Optoelectronics Stock Down 1.2%

The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. The company has a market cap of $10.75 billion, a price-to-earnings ratio of -171.96 and a beta of 3.76. The stock has a fifty day moving average price of $137.34 and a two-hundred day moving average price of $118.71.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.02 by $0.04. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The firm had revenue of $191.92 million during the quarter, compared to the consensus estimate of $190.48 million. During the same quarter in the previous year, the firm posted ($0.16) EPS. The business's revenue for the quarter was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, sell-side analysts expect that Applied Optoelectronics, Inc. will post 0.6 EPS for the current year.

Insiders Place Their Bets

In other Applied Optoelectronics news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of Applied Optoelectronics stock in a transaction on Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $9,825,270.00. Following the completion of the transaction, the chief executive officer directly owned 1,302,436 shares of the company's stock, valued at $216,894,667.08. The trade was a 4.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Stefan J. Murry sold 4,000 shares of the company's stock in a transaction on Friday, July 10th. The shares were sold at an average price of $122.09, for a total value of $488,360.00. Following the sale, the chief financial officer owned 380,576 shares of the company's stock, valued at approximately $46,464,523.84. The trade was a 1.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 506,215 shares of company stock valued at $87,409,447 in the last quarter. Company insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of AAOI. Artemis Wealth Advisors LLC bought a new stake in Applied Optoelectronics during the second quarter worth about $7,447,000. Wealthfront Advisers LLC acquired a new position in shares of Applied Optoelectronics in the 2nd quarter valued at approximately $1,003,000. Timothy G. Youngquist 2020 Irrevocable Trust lifted its holdings in shares of Applied Optoelectronics by 16.5% during the 2nd quarter. Timothy G. Youngquist 2020 Irrevocable Trust now owns 55,796 shares of the semiconductor company's stock worth $8,267,000 after acquiring an additional 7,909 shares during the period. Citizens Financial Group Inc. RI bought a new stake in shares of Applied Optoelectronics during the 2nd quarter worth approximately $1,675,000. Finally, BlackRock Inc. acquired a new stake in shares of Applied Optoelectronics during the 2nd quarter worth approximately $955,672,000. Institutional investors own 61.70% of the company's stock.

About Applied Optoelectronics

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.

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