Applied Optoelectronics (NASDAQ:AAOI) Trading Down 8.3% - Here's What Happened

Key Points

• Applied Optoelectronics' shares fell 8.3%, trading at $30.64 after hitting a low of $30.25, with trading volume down 68% from its average.
• Despite a 137.9% increase in revenue year-over-year, the company reported a loss of ($0.16) EPS for the last quarter, missing analysts' expectations.
• Research analysts have varying ratings on the stock: four buy, two hold, and one sell, with an average price target of $27.20.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares were down 8.3% on Wednesday . The stock traded as low as $30.25 and last traded at $30.64. Approximately 1,476,322 shares traded hands during trading, a decline of 68% from the average daily volume of 4,572,034 shares. The stock had previously closed at $33.40.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on AAOI shares. Needham & Company LLC started coverage on shares of Applied Optoelectronics in a research report on Friday, July 25th. They set a "buy" rating and a $32.00 target price for the company. Rosenblatt Securities increased their target price on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a research report on Thursday, June 26th. Northland Securities set a $30.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 8th. Wolfe Research assumed coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. Finally, B. Riley restated a "neutral" rating and set a $15.00 price target (up previously from $13.00) on shares of Applied Optoelectronics in a research note on Friday, August 8th. Four 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 company. According to MarketBeat, the company has an average rating of "Hold" and an average price target of $27.20.

Applied Optoelectronics Stock Down 13.6%

The firm has a market cap of $1.80 billion, a PE ratio of -8.61 and a beta of 2.92. The firm's 50-day moving average price is $27.07 and its two-hundred day moving average price is $22.04. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.47 and a current ratio of 2.11.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings results 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 revenue for the quarter was up 137.9% compared to the same quarter last year. During the same period last year, the company earned ($0.28) earnings per share. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. As a group, equities research analysts expect that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other news, Director William H. Yeh purchased 4,000 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was acquired at an average price of $21.40 per share, with a total value of $85,600.00. Following the purchase, the director owned 253,819 shares in the company, valued at $5,431,726.60. This represents a 1.60% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Min-Chu (Mike) Chen bought 7,500 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, August 13th. The stock was bought at an average price of $22.91 per share, with a total value of $171,825.00. Following the completion of the acquisition, the director owned 22,500 shares in the company, valued at approximately $515,475. The trade was a 50.00% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 44,100 shares of company stock valued at $1,000,878 in the last quarter. 4.50% of the stock is owned by company insiders.

Institutional Trading of Applied Optoelectronics

A number of large investors have recently bought and sold shares of AAOI. SG Americas Securities LLC bought a new stake in shares of Applied Optoelectronics during the first quarter worth $370,000. Swiss National Bank grew its holdings in shares of Applied Optoelectronics by 15.4% during the first quarter. Swiss National Bank now owns 88,200 shares of the semiconductor company's stock worth $1,354,000 after purchasing an additional 11,800 shares during the last quarter. Chung Wu Investment Group LLC bought a new stake in shares of Applied Optoelectronics during the second quarter worth $344,000. Royce & Associates LP raised its holdings in Applied Optoelectronics by 15.2% during the 1st quarter. Royce & Associates LP now owns 876,543 shares of the semiconductor company's stock worth $13,455,000 after purchasing an additional 115,853 shares during the last quarter. Finally, China Universal Asset Management Co. Ltd. raised its holdings in Applied Optoelectronics by 31.1% during the 1st quarter. China Universal Asset Management Co. Ltd. now owns 40,000 shares of the semiconductor company's stock worth $614,000 after purchasing an additional 9,500 shares during the last quarter. 61.72% of the stock is currently owned by institutional investors.

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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