Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 7.3% - Here's What Happened

Key Points

• AAOI fell 7.3% to $59.27, after trading as low as $57.24; trading volume was about 15.5 million shares, 48% above its average. The article does not identify a specific trigger for the decline.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $156. Recent target changes were mixed, including cuts from Needham and B. Riley.
• The company’s latest reported quarter beat EPS and revenue estimates, with revenue up 86.3% year over year. Insiders sold about 52,172 shares worth $6.0 million over the prior three months, with the cited sales made under pre-arranged trading plans.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report)'s stock price was down 7.3% on Wednesday. The stock traded as low as $57.24 and last traded at $59.27. Approximately 15,506,996 shares changed hands during mid-day trading, an increase of 48% from the average daily volume of 10,485,362 shares. The stock had previously closed at $63.97.

Wall Street Analyst Weigh In

AAOI has been the topic of several recent research reports. Raymond James Financial reiterated an "outperform" rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Needham & Company LLC cut their target price on Applied Optoelectronics from $190.00 to $170.00 and set a "buy" rating on the stock in a research note on Tuesday, October 27th. Weiss Ratings upgraded shares of Applied Optoelectronics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, October 21st. Rosenblatt Securities restated a "buy" rating and set a $220.00 price target on shares of Applied Optoelectronics in a research report on Friday, August 7th. Finally, B. Riley Financial decreased their target price on shares of Applied Optoelectronics from $109.00 to $92.00 and set a "neutral" rating for the company in a research note on Thursday, October 15th. Four investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Applied Optoelectronics presently has a consensus rating of "Moderate Buy" and an average price target of $156.00.

Applied Optoelectronics Price Performance

The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13. The firm has a market capitalization of $5.01 billion, a PE ratio of -75.99 and a beta of 4.04. The firm has a 50-day simple moving average of $96.64 and a 200-day simple moving average of $113.03.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 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 business had revenue of $191.92 million during the quarter, compared to analysts' expectations of $190.48 million. During the same period in the prior year, the company earned ($0.16) earnings per share. The firm's revenue was up 86.3% on a year-over-year basis. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, equities analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, CFO Stefan J. Murry sold 4,000 shares of the company's stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $102.87, for a total value of $411,480.00. Following the completion of the sale, the chief financial officer owned 363,168 shares in the company, valued at $37,359,092.16. This represents a 1.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the firm's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $147.73, for a total value of $886,380.00. Following the completion of the transaction, the insider directly owned 377,498 shares in the company, valued at $55,767,779.54. This trade represents a 1.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 52,172 shares of company stock worth $5,985,036. Corporate insiders own 3.80% of the company's stock.

Institutional Investors Weigh In On Applied Optoelectronics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AAOI. AlphaCore Capital LLC raised its holdings in Applied Optoelectronics by 125.6% during the 3rd quarter. AlphaCore Capital LLC now owns 4,077 shares of the semiconductor company's stock valued at $405,000 after buying an additional 2,270 shares during the period. Allspring Global Investments Holdings LLC lifted its position in Applied Optoelectronics by 24.8% in the third quarter. Allspring Global Investments Holdings LLC now owns 44,180 shares of the semiconductor company's stock worth $4,741,000 after buying an additional 8,786 shares during the last quarter. StoneX Group Inc. boosted its stake in Applied Optoelectronics by 231.6% during the third quarter. StoneX Group Inc. now owns 13,584 shares of the semiconductor company's stock worth $1,306,000 after buying an additional 9,488 shares during the period. Pictet Asset Management Holding SA boosted its stake in Applied Optoelectronics by 4.1% during the third quarter. Pictet Asset Management Holding SA now owns 12,045 shares of the semiconductor company's stock worth $1,196,000 after buying an additional 471 shares during the period. Finally, Fund Resources Investment Holding Group Co Ltd boosted its stake in Applied Optoelectronics by 283.0% during the third quarter. Fund Resources Investment Holding Group Co Ltd now owns 191,441 shares of the semiconductor company's stock worth $19,002,000 after buying an additional 141,453 shares during the period. 61.70% of the stock is owned by hedge funds and other institutional investors.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc NASDAQ: AAOI develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.