Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 3.7% – Here’s Why

Posted by Stanley Muller on Oct 31st, 2026

Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report) shares dropped 3.7% during mid-day trading on Thursday. The stock traded as low as $76.98 and last traded at $79.19. 9,381,400 shares were traded during trading, a decline of 10% from the average daily volume of 10,399,748 shares. The stock had previously closed at $82.22.

Analyst Ratings Changes

Several brokerages recently commented on AAOI. B. Riley Financial decreased their price objective on shares of Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a research report on Thursday, October 15th. Raymond James Financial reissued an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Needham & Company LLC decreased their price target on shares of Applied Optoelectronics from $190.00 to $170.00 and set a “buy” rating for the company in a report on Tuesday. Weiss Ratings raised shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, October 21st. Finally, Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Applied Optoelectronics presently has a consensus rating of “Hold” and a consensus target price of $143.00.

View Our Latest Report on AAOI

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 stock has a market cap of $5.84 billion, a price-to-earnings ratio of -88.53 and a beta of 3.85. The stock has a fifty day moving average of $98.76 and a 200 day moving average of $112.74.

Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $191.92 million for the quarter, compared to the consensus estimate of $190.48 million. During the same quarter in the prior year, the company earned ($0.16) EPS. Applied Optoelectronics’s quarterly 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. On average, analysts expect that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Buying and Selling at Applied Optoelectronics

In other Applied Optoelectronics news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction dated 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 in the company, valued at approximately $44,590,904.94. This trade represents a 1.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. Murry sold 4,000 shares of the business’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total value of $411,480.00. Following the completion of the transaction, the chief financial officer directly owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. This trade 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. Over the last three months, insiders have sold 56,887 shares of company stock valued at $6,581,484. 3.80% of the stock is owned by insiders.

Institutional Trading of Applied Optoelectronics

Hedge funds and other institutional investors have recently bought and sold shares of the stock. BOCHK Asset Management Ltd acquired a new position in shares of Applied Optoelectronics during the third quarter valued at approximately $99,000. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Applied Optoelectronics in the third quarter worth approximately $14,087,000. Pilgrim Partners Asia Pte Ltd purchased a new stake in shares of Applied Optoelectronics during the third quarter worth approximately $695,000. MGO One Seven LLC increased its position in shares of Applied Optoelectronics by 79.8% during the third quarter. MGO One Seven LLC now owns 4,510 shares of the semiconductor company’s stock worth $448,000 after purchasing an additional 2,002 shares in the last quarter. Finally, M & L Capital Management Ltd acquired a new position in Applied Optoelectronics in the 3rd quarter valued at $1,568,000. 61.70% of the stock is owned by institutional investors and hedge funds.

About Applied Optoelectronics

(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.