Applied Optoelectronics (NASDAQ:AAOI) Stock Price Up 11.6% - Time to Buy?

Key Points

• Applied Optoelectronics (NASDAQ:AAOI) saw a significant stock price increase of 11.6%, closing at $31.77 after trading as high as $31.15 amidst a notable decline in trading volume.
• Equities analysts have mixed views on AAOI, with four analysts rating it as a Buy, a consensus price target of $27.20, and one analyst issuing a Sell rating.
• Despite the stock's recent performance, the company reported a loss of ($0.16) EPS for the last quarter, missing expectations and showing a negative net margin of 42.29%.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s stock price was up 11.6% on Wednesday . The stock traded as high as $31.15 and last traded at $31.77. Approximately 1,553,341 shares traded hands during trading, a decline of 66% from the average daily volume of 4,557,625 shares. The stock had previously closed at $28.48.

Analysts Set New Price Targets

Several equities analysts recently weighed in on AAOI shares. Needham & Company LLC started coverage on shares of Applied Optoelectronics in a report on Friday, July 25th. They set a "buy" rating and a $32.00 target price on the stock. B. Riley reiterated a "neutral" rating and issued a $15.00 price objective (up previously from $13.00) on shares of Applied Optoelectronics in a report on Friday, August 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Applied Optoelectronics in a report on Wednesday, October 8th. Wall Street Zen lowered shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Wolfe Research started coverage on shares of Applied Optoelectronics in a report on Tuesday, July 8th. They issued a "peer perform" rating on the stock. Four 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 company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $27.20.

Applied Optoelectronics Trading Up 14.5%

The company has a current ratio of 2.11, a quick ratio of 1.47 and a debt-to-equity ratio of 0.36. The business's 50-day moving average is $26.01 and its two-hundred day moving average is $21.39. The firm has a market cap of $2.03 billion, a P/E ratio of -9.69 and a beta of 2.92.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced 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). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The business had revenue of $102.95 million for the quarter, compared to the consensus estimate of $104.96 million. During the same period in the prior year, the company earned ($0.28) EPS. Applied Optoelectronics's quarterly revenue was up 137.9% on a year-over-year basis. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. As a group, analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Activity

In other Applied Optoelectronics news, Director Min-Chu (Mike) Chen acquired 7,500 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, August 13th. The stock was acquired at an average price of $22.91 per share, with a total value of $171,825.00. Following the purchase, the director owned 22,500 shares in the company, valued at approximately $515,475. This trade represents a 50.00% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Hung-Lun (Fred) Chang sold 15,784 shares of Applied Optoelectronics stock in a transaction on Wednesday, August 13th. The stock was sold at an average price of $22.70, for a total transaction of $358,296.80. Following the completion of the transaction, the insider owned 256,326 shares in the company, valued at $5,818,600.20. This trade represents a 5.80% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders bought 44,100 shares of company stock worth $1,000,878. 4.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Rhumbline Advisers increased its holdings in shares of Applied Optoelectronics by 1.1% during the 1st quarter. Rhumbline Advisers now owns 61,017 shares of the semiconductor company's stock worth $937,000 after purchasing an additional 669 shares during the period. Nisa Investment Advisors LLC grew its stake in Applied Optoelectronics by 497.5% during the second quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company's stock worth $25,000 after buying an additional 801 shares during the last quarter. GAMMA Investing LLC grew its stake in Applied Optoelectronics by 85.9% during the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock worth $46,000 after buying an additional 825 shares during the last quarter. Corebridge Financial Inc. grew its stake in shares of Applied Optoelectronics by 4.2% during the first quarter. Corebridge Financial Inc. now owns 21,096 shares of the semiconductor company's stock valued at $324,000 after purchasing an additional 843 shares during the last quarter. Finally, Ameritas Investment Partners Inc. grew its stake in shares of Applied Optoelectronics by 28.8% during the second quarter. Ameritas Investment Partners Inc. now owns 5,488 shares of the semiconductor company's stock valued at $141,000 after purchasing an additional 1,226 shares during the last quarter. 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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