Applied Optoelectronics (NASDAQ:AAOI) Shares Up 3.9% – Here’s Why

Posted by Brenda Bartman on Nov 9th, 2026

Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report) shares were up 3.9% on Monday. The company traded as high as $54.04 and last traded at $52.10. Approximately 15,277,094 shares traded hands during mid-day trading, an increase of 43% from the average session volume of 10,652,387 shares. The stock had previously closed at $50.13.

Analyst Ratings Changes

Several analysts have weighed in on AAOI shares. Rosenblatt Securities lowered their price target on shares of Applied Optoelectronics from $220.00 to $115.00 and set a “buy” rating for the company in a research note on Friday. Weiss Ratings upgraded shares of Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Needham & Company LLC reduced their price objective on Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a research note on Friday. Northland Securities upgraded Applied Optoelectronics from a “market perform” rating to an “outperform” rating and set a $120.00 price objective on the stock in a report on Monday, November 2nd. Finally, Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $111.60.

Get Our Latest Analysis on Applied Optoelectronics

Applied Optoelectronics Stock Up 3.9%

The company has a debt-to-equity ratio of 0.10, a current ratio of 2.34 and a quick ratio of 1.77. The stock has a 50 day simple moving average of $92.96 and a 200-day simple moving average of $113.25. The firm has a market cap of $4.41 billion, a PE ratio of -121.16 and a beta of 4.04.

Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last announced its earnings results on Thursday, November 5th. The semiconductor company reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.03. The company had revenue of $269.88 million for the quarter, compared to analysts’ expectations of $268.11 million. Applied Optoelectronics had a negative return on equity of 0.17% and a negative net margin of 4.39%. Applied Optoelectronics’s revenue for the quarter was up 127.5% compared to the same quarter last year. During the same period last year, the firm earned ($0.09) EPS. Sell-side analysts predict that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In other news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $147.73, for a total transaction of $886,380.00. Following the transaction, the insider directly owned 377,498 shares of the company’s stock, valued at $55,767,779.54. The trade was a 1.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 stock was sold at an average price of $102.87, for a total transaction of $411,480.00. Following the completion of the transaction, the chief financial officer owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. The trade was a 1.09% decrease in their ownership of the stock. 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 52,172 shares of company stock valued at $5,985,036 over the last quarter. 3.80% of the stock is currently owned by company insiders.

Institutional Trading of Applied Optoelectronics

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in shares of Applied Optoelectronics during the second quarter valued at about $955,672,000. William Blair Investment Management LLC raised its stake in shares of Applied Optoelectronics by 12.4% in the 3rd quarter. William Blair Investment Management LLC now owns 566,908 shares of the semiconductor company’s stock valued at $56,271,000 after acquiring an additional 62,706 shares during the period. Renaissance Technologies LLC acquired a new position in shares of Applied Optoelectronics in the 1st quarter worth approximately $47,817,000. Bank of America Corp DE acquired a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $33,712,000. Finally, Bank of New York Mellon Corp acquired a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $32,567,000. 61.70% of the stock is currently owned by institutional investors.

Applied Optoelectronics Company Profile

(Get Free Report)

Applied Optoelectronics, Inc designs and manufactures fiber-optic networking products used to transmit data over cable, telecommunications and data center networks. Its offerings include optical transceivers and other optical components and equipment.

The company serves customers in markets including broadband access, telecommunications and data centers. Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics has operations in the United States and Asia and serves customers internationally.

Founder Thompson Lin has served as the company’s chief executive officer.