Applied Optoelectronics (NASDAQ:AAOI) Stock Falls 1.9% – Time to Sell?

Posted by Francis Steltz on Oct 22nd, 2026

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report) traded down 1.9% on Tuesday. The stock traded as low as $73.05 and last traded at $76.74. Approximately 8,752,863 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 10,397,017 shares. The stock had previously closed at $78.20.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Raymond James Financial reiterated an “outperform” rating and issued a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. B. Riley Financial lowered their price target on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating on the stock in a research report on Thursday, October 15th. Needham & Company LLC lowered their price target on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research report on Friday, August 7th. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Finally, Rosenblatt Securities reiterated a “buy” rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a report on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $147.00.

Read Our Latest Stock Analysis on Applied Optoelectronics

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 $6.54 billion, a P/E ratio of -99.13 and a beta of 3.85. The firm’s 50 day simple moving average is $106.93 and its two-hundred day simple moving average is $132.94.

Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04. The firm had revenue of $191.92 million for the quarter, compared to analysts’ expectations of $190.48 million. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. The company’s revenue for the quarter was up 86.3% compared to the same quarter last year. During the same period last year, the firm earned ($0.16) earnings per share. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, analysts predict that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Insider Buying and Selling

In other Applied Optoelectronics news, insider Shu-Hua Yeh sold 6,000 shares of the company’s stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the completion of the transaction, the insider owned 371,498 shares of the company’s stock, valued at $44,590,904.94. This represents a 1.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. Murry sold 4,000 shares of the company’s stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the transaction, the chief financial officer owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. This represents a 1.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 56,887 shares of company stock worth $6,581,484 in the last ninety days. 3.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new stake in Applied Optoelectronics in the second quarter worth $955,672,000. Renaissance Technologies LLC purchased a new position in Applied Optoelectronics during the first quarter valued at $47,817,000. William Blair Investment Management LLC purchased a new position in Applied Optoelectronics during the second quarter valued at $74,703,000. Bank of America Corp DE bought a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at $33,712,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at $32,567,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

Applied Optoelectronics Company Profile

(Get Free Report)

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.