Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 12.6% – Here’s What Happened

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) dropped 12.6% during mid-day trading on Monday . The stock traded as low as $25.07 and last traded at $24.9710. Approximately 3,050,059 shares changed hands during mid-day trading, a decline of 34% from the average daily volume of 4,637,303 shares. The stock had previously closed at $28.57.

Analysts Set New Price Targets

Several equities research analysts have commented on AAOI shares. B. Riley reiterated a “sell” rating and set a $15.00 price objective on shares of Applied Optoelectronics in a research note on Monday. Weiss Ratings reiterated a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, October 8th. Wall Street Zen downgraded Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Saturday, August 9th. Raymond James Financial lifted 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. Finally, Northland Securities set a $30.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 8th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $27.20.

Applied Optoelectronics Stock Performance

The firm has a fifty day moving average price of $29.44 and a 200 day moving average price of $24.15. The company has a current ratio of 2.31, a quick ratio of 1.63 and a debt-to-equity ratio of 0.23. The firm has a market cap of $1.60 billion, a PE ratio of -7.94 and a beta of 2.88.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) EPS for the quarter, topping the consensus estimate of ($0.10) by $0.01. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%.The business had revenue of $118.63 million during the quarter, compared to analyst estimates of $119.77 million. During the same period last year, the business posted ($0.21) earnings per share. The company’s quarterly revenue was up 82.1% on a year-over-year basis. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. As a group, equities research analysts expect that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current fiscal year.

Insider Activity at Applied Optoelectronics

In other Applied Optoelectronics news, Director Min-Chu (Mike) Chen acquired 7,500 shares of the stock in a transaction dated 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 completion of the purchase, the director owned 22,500 shares in the company, valued at $515,475. This trade represents a 50.00% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Stefan J. Murry sold 12,000 shares of the company’s stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $22.37, for a total transaction of $268,440.00. Following the sale, the chief financial officer directly owned 298,477 shares in the company, valued at approximately $6,676,930.49. The trade was a 3.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders bought a total of 44,100 shares of company stock worth $1,000,878 over the last ninety days. Company insiders own 4.50% of the company’s stock.

Hedge Funds Weigh In On Applied Optoelectronics

A number of institutional investors have recently modified their holdings of the business. CloudAlpha Capital Management Limited Hong Kong grew its stake in shares of Applied Optoelectronics by 410.7% in the 2nd quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company’s stock valued at $36,197,000 after purchasing an additional 1,133,115 shares during the last quarter. Swiss National Bank raised its stake 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 acquired a new stake in shares of Applied Optoelectronics during the second quarter worth $344,000. Sovereign Financial Group Inc. acquired a new stake in shares of Applied Optoelectronics during the second quarter worth $287,000. Finally, Royce & Associates LP grew its position in Applied Optoelectronics by 15.2% in the 1st quarter. Royce & Associates LP now owns 876,543 shares of the semiconductor company’s stock valued at $13,455,000 after buying an additional 115,853 shares during the last quarter. 61.72% of the stock is owned by institutional investors and hedge funds.

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.