Applied Optoelectronics (NASDAQ:AAOI) Trading Up 18.3% - Here's Why

Key Points

• Applied Optoelectronics (NASDAQ:AAOI) shares surged 18.3% on Monday, reaching a high of $30.78 before closing at $33.04, despite a decrease in overall trading volume.
• Analysts have mixed opinions on AAOI, with some upgrades raising target prices while others maintain sell ratings, resulting in a current consensus rating of "Hold" and a price target of $27.20.
• The company reported negative earnings of ($0.16) per share in the latest quarter, missing estimates, but experienced a 137.9% revenue increase year-over-year with total revenue of $102.95 million.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) shares were up 18.3% on Monday . The company traded as high as $30.78 and last traded at $33.04. Approximately 3,548,617 shares changed hands during trading, a decline of 21% from the average daily volume of 4,502,523 shares. The stock had previously closed at $27.93.

Wall Street Analyst Weigh In

Several analysts recently weighed in on AAOI shares. Rosenblatt Securities lifted their target price on shares of Applied Optoelectronics from $30.00 to $34.00 and gave the company a "buy" rating in a report on Thursday, June 26th. Wolfe Research began coverage on shares of Applied Optoelectronics in a report on Tuesday, July 8th. They issued a "peer perform" rating for the company. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Optoelectronics in a research note on Saturday, September 27th. Wall Street Zen downgraded shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Finally, Raymond James Financial upped their target price on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the stock an "outperform" rating 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. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $27.20.

Applied Optoelectronics Trading Up 21.0%

The stock has a market capitalization of $2.11 billion, a price-to-earnings ratio of -10.06 and a beta of 2.92. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.11 and a quick ratio of 1.47. The business's 50-day simple moving average is $24.93 and its two-hundred day simple moving average is $20.86.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced 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). 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 analyst estimates of $104.96 million. The company's quarterly revenue was up 137.9% on a year-over-year basis. During the same period last year, the firm earned ($0.28) earnings per share. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. On average, research analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Activity at Applied Optoelectronics

In other news, insider Hung-Lun (Fred) Chang sold 15,784 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were 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 approximately $5,818,600.20. This trade represents a 5.80% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Chih-Hsiang (Thompson) Lin bought 8,850 shares of the firm's stock in a transaction on Wednesday, August 13th. The stock was purchased at an average price of $22.53 per share, with a total value of $199,390.50. Following the completion of the acquisition, the chief executive officer owned 1,652,165 shares of the company's stock, valued at approximately $37,223,277.45. This trade represents a 0.54% increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have purchased 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

Several hedge funds and other institutional investors have recently made changes to their positions in AAOI. Nisa Investment Advisors LLC boosted its holdings in shares of Applied Optoelectronics by 497.5% in 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 period. AlphaQuest LLC lifted its position in shares of Applied Optoelectronics by 243.9% in the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock worth $35,000 after purchasing an additional 1,629 shares in the last quarter. GAMMA Investing LLC lifted its position in shares of Applied Optoelectronics by 85.9% in the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock worth $46,000 after purchasing an additional 825 shares in the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. purchased a new stake in shares of Applied Optoelectronics in the second quarter worth approximately $49,000. Finally, CWM LLC lifted its position in shares of Applied Optoelectronics by 175.5% in the second quarter. CWM LLC now owns 2,218 shares of the semiconductor company's stock worth $57,000 after purchasing an additional 1,413 shares in the last quarter. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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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