Applied Optoelectronics (NASDAQ:AAOI) Stock Price Down 10.2% – Should You Sell?

25 Jun 2026, 12:20 by Michael Walen · The Markets Daily

Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report)’s share price fell 10.2% during trading on Tuesday . The company traded as low as $154.70 and last traded at $153.7490. 4,450,631 shares were traded during trading, a decline of 58% from the average daily volume of 10,531,398 shares. The stock had previously closed at $171.23.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Raymond James Financial restated an “outperform” rating on shares of Applied Optoelectronics in a report on Wednesday, June 10th. B. Riley Financial raised shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 target price on the stock in a research note on Friday, February 27th. Wall Street Zen cut shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Monday, April 13th. Rosenblatt Securities reissued a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Monday. Finally, Needham & Company LLC raised their price objective on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the stock a “buy” rating in a report on Friday, February 27th. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Applied Optoelectronics has a consensus rating of “Hold” and an average target price of $113.80.

Get Our Latest Stock Report on AAOI

Applied Optoelectronics Stock Performance

The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18. The company’s 50 day moving average is $170.14 and its 200-day moving average is $100.32. The company has a market capitalization of $11.79 billion, a P/E ratio of -222.68 and a beta of 3.66.

Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.02). Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The business had revenue of $151.14 million for the quarter, compared to analysts’ expectations of $156.98 million. During the same period last year, the business earned ($0.02) earnings per share. The company’s revenue was up 51.3% on a year-over-year basis. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Equities analysts anticipate that Applied Optoelectronics, Inc. will post 0.6 EPS for the current fiscal year.

Insider Activity

In related news, insider Hung-Lun (Fred) Chang sold 40,329 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total value of $6,880,127.40. Following the sale, the insider owned 286,124 shares in the company, valued at $48,812,754.40. This represents a 12.35% decrease in their position. The transaction was disclosed in a filing with the SEC, 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 33,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $173.26, for a total value of $5,717,580.00. Following the transaction, the chief financial officer directly owned 451,906 shares of the company’s stock, valued at approximately $78,297,233.56. This trade represents a 6.81% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 500,215 shares of company stock valued at $86,716,414. 3.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Applied Optoelectronics

A number of institutional investors have recently modified their holdings of the stock. Allworth Financial LP boosted its stake in Applied Optoelectronics by 1,923.7% in the 4th quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock worth $27,000 after purchasing an additional 731 shares in the last quarter. NFSG Corp bought a new stake in Applied Optoelectronics during the 1st quarter valued at about $85,000. Comerica Bank bought a new position in shares of Applied Optoelectronics in the third quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Applied Optoelectronics by 166.7% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after buying an additional 750 shares in the last quarter. Finally, Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Applied Optoelectronics during the fourth quarter valued at approximately $55,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

About Applied Optoelectronics

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Applied Optoelectronics, Inc develops and manufactures high-speed fiber-optic networking products designed to support the growing bandwidth demands of data centers, telecommunications carriers and internet content providers. The company’s core offerings include pluggable optical transceiver modules, transponders and optical components that enable data transmission at rates ranging from 1G to 400G. These products are used to facilitate long-haul, metro and intra-data center connectivity, addressing the need for scalable, low-latency and energy-efficient solutions in modern network infrastructures.