Applied Optoelectronics (NASDAQ:AAOI) Shares Down 6.9% – Time to Sell?

by · The Markets Daily

Applied Optoelectronics, Inc. (NASDAQ:AAOI – Get Free Report)’s stock price traded down 6.9% during mid-day trading on Friday . The company traded as low as $34.00 and last traded at $33.8190. 994,481 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 4,709,452 shares. The stock had previously closed at $36.32.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on AAOI shares. Northland Securities set a $45.00 price target on Applied Optoelectronics in a report on Thursday. Needham & Company LLC lifted their price target on Applied Optoelectronics from $38.00 to $43.00 and gave the company a “buy” rating in a report on Thursday. Rosenblatt Securities increased their price objective on shares of Applied Optoelectronics from $35.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday. B. Riley reaffirmed a “sell” rating and issued a $15.00 target price on shares of Applied Optoelectronics in a research note on Monday, November 10th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Wednesday, October 8th. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $35.60.

View Our Latest Stock Report on AAOI

Applied Optoelectronics Stock Performance

The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.63 and a current ratio of 2.31. The company has a market cap of $2.25 billion, a price-to-earnings ratio of -10.28 and a beta of 3.25. The firm’s 50-day moving average price is $28.72 and its 200 day moving average price is $25.57.

Applied Optoelectronics (NASDAQ:AAOI – Get Free Report) last announced its quarterly earnings results on Thursday, November 6th. The semiconductor company reported ($0.09) EPS for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.01. Applied Optoelectronics had a negative return on equity of 7.34% and a negative net margin of 36.97%.The company had revenue of $118.63 million during the quarter, compared to analysts’ expectations of $119.77 million. During the same period in the prior year, the business posted ($0.21) EPS. Applied Optoelectronics’s revenue was up 82.1% on a year-over-year basis. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. On average, sell-side analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Institutional Investors Weigh In On Applied Optoelectronics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in shares of Applied Optoelectronics by 13.6% during the 3rd quarter. Vanguard Group Inc. now owns 4,624,570 shares of the semiconductor company’s stock valued at $119,915,000 after acquiring an additional 551,910 shares in the last quarter. CloudAlpha Capital Management Limited Hong Kong raised its position in shares of Applied Optoelectronics by 410.7% in the 2nd quarter. CloudAlpha Capital Management Limited Hong Kong now owns 1,408,983 shares of the semiconductor company’s stock worth $36,197,000 after acquiring an additional 1,133,115 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Applied Optoelectronics by 18.8% during the 2nd quarter. Geode Capital Management LLC now owns 1,285,693 shares of the semiconductor company’s stock valued at $33,034,000 after purchasing an additional 203,830 shares in the last quarter. Citigroup Inc. grew its stake in Applied Optoelectronics by 60.0% during the third quarter. Citigroup Inc. now owns 1,160,456 shares of the semiconductor company’s stock worth $30,091,000 after purchasing an additional 435,349 shares during the period. Finally, Hawk Ridge Capital Management LP bought a new stake in Applied Optoelectronics in the third quarter worth approximately $21,392,000. 61.72% of the stock is currently owned by institutional investors and hedge funds.

About Applied Optoelectronics

(Get Free Report)

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.

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