Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report) shares fell 2.9% during trading on Tuesday. The company traded as low as $95.08 and last traded at $97.78. Approximately 10,467,806 shares were traded during mid-day trading, an increase of 1% from the average daily volume of 10,316,849 shares. The stock had previously closed at $100.68.
Key Stories Impacting Applied Optoelectronics
Here are the key news stories impacting Applied Optoelectronics this week:
- Positive Sentiment: Recent operating results provide a fundamental counterpoint: Applied Optoelectronics reported record second-quarter 2026 revenue of $191.9 million, up 86.3% year over year, exceeded EPS and revenue estimates, and returned to non-GAAP profitability. A technical analysis also identified a potential “buy the dip” setup. Struggling Photonics Stock Flashing Buy the Dip Signal
- Neutral Sentiment: B. Riley Financial lowered its AAOI price target from $109 to $92 and maintained a “neutral” rating. The revised target still implies upside from recent trading levels, but the reduction signals less confidence in the near-term valuation. Benzinga analyst update
- Negative Sentiment: AAOI is declining alongside Coherent and Lumentum as investors question the pace, funding and returns of AI data-center construction. Money moving into defensive sectors is further weighing on the group. Optical Stocks Extend Slide as Money Rotates Into Defensives
- Negative Sentiment: The stock’s high volatility and substantial retreat below its 50-day and 200-day moving averages indicate worsening technical momentum after a major 2026 rally. Hot inflation has also increased concern that interest rates could remain restrictive, pressuring richly valued growth shares. Applied Optoelectronics Stock Fell on Hot Inflation
- Negative Sentiment: CFO Stefan Murry sold 4,000 shares for approximately $411,480 under a pre-arranged Rule 10b5-1 plan. The sale was relatively small compared with his remaining holdings, but it adds to investor sensitivity around insider selling. SEC Insider Ownership Filing
Wall Street Analysts Forecast Growth
Several equities analysts recently issued reports on AAOI shares. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. 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. Needham & Company LLC lowered their target price on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Raymond James Financial restated an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Finally, Weiss Ratings lowered shares of Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. Three 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. According to data from MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and a consensus target price of $147.00.
View Our Latest Stock Analysis on AAOI
Applied Optoelectronics Price Performance
The stock has a market cap of $7.08 billion, a PE ratio of -107.35 and a beta of 3.85. The stock’s fifty day moving average is $112.40 and its 200-day moving average is $133.41. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13.
Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last posted 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. The company had revenue of $191.92 million for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.16) earnings per share. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, equities analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current year.
Insider Buying and Selling at Applied Optoelectronics
In related news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $120.03, for a total value of $720,180.00. Following the completion of the transaction, the insider owned 371,498 shares in the company, valued at $44,590,904.94. The trade was a 1.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of Applied Optoelectronics stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the sale, the insider directly owned 249,276 shares of the company’s stock, valued at approximately $27,472,707.96. This trade represents a 11.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 58,172 shares of company stock valued at $6,735,709 in the last quarter. Corporate insiders own 3.80% of the company’s stock.
Hedge Funds Weigh In On Applied Optoelectronics
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Geneos Wealth Management Inc. grew its stake in Applied Optoelectronics by 1.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock worth $1,529,000 after acquiring an additional 243 shares during the period. Allworth Financial LP increased its stake in Applied Optoelectronics by 68.8% during the second quarter. Allworth Financial LP now owns 596 shares of the semiconductor company’s stock worth $88,000 after acquiring an additional 243 shares during the last quarter. Polaris Financial Partners acquired a new stake in shares of Applied Optoelectronics in the third quarter worth $26,000. EFG International AG acquired a new position in shares of Applied Optoelectronics during the 2nd quarter valued at $44,000. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Applied Optoelectronics during the second quarter worth about $47,000. 61.70% of the stock is currently owned by hedge funds and other institutional investors.
Applied Optoelectronics Company Profile
Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.
The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.
Featured Articles
- Five stocks we like better than Applied Optoelectronics
- ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing
- Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans
- AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle
- Beyond the GPU: Credo Paves the Next AI Data Superhighway
Receive News & Ratings for Applied Optoelectronics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Applied Optoelectronics and related companies with MarketBeat.com's FREE daily email newsletter.
