Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 11.5% - Time to Buy?

Key Points

• Applied Optoelectronics' stock experienced an 11.5% increase during mid-day trading, rising from a previous close of $23.72 to $26.44, with about 2.9 million shares traded.
• Analyst ratings for the company range from a "buy" with a $32.00 price target by Needham & Company to a "sell" rating from Wall Street Zen, resulting in a consensus of "Moderate Buy" and an average target price of $27.20.
• The company reported earnings of ($0.16) per share for the last quarter, missing analyst expectations, but showed a substantial year-over-year revenue increase of 137.9%.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shot up 11.5% during mid-day trading on Wednesday . The stock traded as high as $26.30 and last traded at $26.44. 2,947,873 shares traded hands during trading, a decline of 34% from the average session volume of 4,446,481 shares. The stock had previously closed at $23.72.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on AAOI. Wolfe Research began coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They issued a "peer perform" rating for the company. B. Riley reiterated a "neutral" rating and issued a $15.00 price target (up from $13.00) on shares of Applied Optoelectronics in a research report on Friday, August 8th. Rosenblatt Securities upped their price target on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the stock a "buy" rating in a research report on Thursday, June 26th. Northland Securities set a $30.00 price target on shares of Applied Optoelectronics in a research report on Friday, August 8th. Finally, Wall Street Zen lowered shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Four research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $27.20.

Applied Optoelectronics Price Performance

The firm's fifty day moving average price is $24.89 and its 200 day moving average price is $19.85. 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 stock has a market cap of $1.84 billion, a PE ratio of -8.80 and a beta of 2.91.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last released its 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 return on equity of 10.60% and a negative net margin of 42.29%.The company had revenue of $102.95 million during the quarter, compared to analysts' expectations of $104.96 million. During the same period last year, the firm posted ($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. As a group, equities analysts expect that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, Director William H. Yeh purchased 4,000 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The shares were bought at an average price of $21.40 per share, with a total value of $85,600.00. Following the completion of the purchase, the director directly owned 253,819 shares in the company, valued at $5,431,726.60. This trade represents a 1.60% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Hung-Lun (Fred) Chang sold 15,784 shares of the company's stock in a transaction on Wednesday, August 13th. The shares were sold at an average price of $22.70, for a total transaction of $358,296.80. Following the sale, the insider directly owned 256,326 shares in the company, valued at approximately $5,818,600.20. The trade was a 5.80% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have bought 44,100 shares of company stock valued at $1,000,878 and have sold 30,784 shares valued at $709,117. Company insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Applied Optoelectronics

A number of hedge funds have recently bought and sold shares of the business. Squarepoint Ops LLC purchased a new stake in Applied Optoelectronics during the second quarter valued at $4,283,000. Marex Group plc purchased a new stake in Applied Optoelectronics during the second quarter valued at $1,420,000. Headlands Technologies LLC purchased a new stake in Applied Optoelectronics during the second quarter valued at $57,000. Tower Research Capital LLC TRC raised its stake in Applied Optoelectronics by 244.0% during the second quarter. Tower Research Capital LLC TRC now owns 6,832 shares of the semiconductor company's stock valued at $176,000 after purchasing an additional 4,846 shares in the last quarter. Finally, E Fund Management Co. Ltd. purchased a new stake in Applied Optoelectronics during the second quarter valued at $2,939,000. 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.