Applied Optoelectronics Experiences High Options Trading Activity (NASDAQ:AAOI)

On Thursday, March 1, 2025, Applied Optoelectronics, Inc. (NASDAQ:AAOI) saw a significant spike in its options trading, with investors purchasing a total of 11,569 call options. This marks a striking 62% increase from the usual daily volume of about 7,148 call options.

Performance of Applied Optoelectronics Stock

As of Friday, NASDAQ:AAOI opened at $21.86. Over the past year, the stock has fluctuated, with a low of $6.70 and a high of $44.50. The fifty-day moving average is currently at $30.33, while the two-hundred-day moving average stands at $24.02. The company boasts a market capitalization of $1.02 billion, with a negative Price-to-Earnings (P/E) ratio of -10.61 and a beta of 2.36, indicating higher volatility. Financial ratios reveal a quick ratio of 1.06 and a current ratio of 1.61, with a debt-to-equity ratio of 0.36.

Recently, on February 26, Applied Optoelectronics released its quarterly earnings report, revealing earnings per share (EPS) of ($0.09), which was lower than the expected ($0.02) by a margin of $0.07. The report highlighted a negative return on equity of 22.36% and a negative net margin of 38.61%. The company’s revenue was reported at $100.27 million, exceeding analyst estimates of $99.92 million. Analysts predict that the company will report an EPS of -1.18 for the current year.

Insider Transactions within Applied Optoelectronics

On December 3rd, director William H. Yeh sold 10,000 shares for approximately $430,800 at an average price of $43.08. Following this transaction, Yeh retained 223,538 shares, valued at about $9.63 million, representing a decrease of 4.28% in his holdings. The transaction details were filed with the Securities and Exchange Commission. Furthermore, CFO Stefan J. Murry sold 2,298 shares on January 21st at an average price of $35.17 for a total of $80,820.66. After this sale, Murry holds 209,831 shares valued at around $7.38 million, signifying a 1.08% decrease in his position. Over the past three months, insiders have sold a total of 36,298 shares amounting to $1.28 million, with corporate insiders owning 5.40% of the company stock.

Institutional Investors Adjust Positions in AAOI

In recent months, various institutional investors have adjusted their holdings in Applied Optoelectronics. GF Fund Management CO. LTD. acquired a new stake valued at approximately $5.07 million in the fourth quarter. UBS Asset Management Americas LLC increased its stake by 17.4%, now owning 78,959 shares worth $2.91 million after acquiring an additional 11,684 shares. Voloridge Investment Management LLC also purchased a new position valued at roughly $13.03 million during the fourth quarter. Additionally, Two Sigma Advisers LP raised their holdings by 265.8%, now owning 57,800 shares worth $2.13 million. Another entity, Two Sigma Investments LP, increased its stake by 10.5%, bringing its total to 588,469 shares valued at $21.69 million. Currently, institutional investors and hedge funds hold 61.72% of the stock.

Analysts' Outlook for Applied Optoelectronics

Several analysts have offered insights regarding AAOI shares. Raymond James has raised the target price to $31.00 and issued a “buy” rating. In contrast, StockNews.com has downgraded the stock to a “sell” rating. B. Riley reduced the rating from “neutral” to “sell,” establishing a target price of $14.00. Northland Securities maintained an “outperform” rating with an increased target price of $40.00 from a previous $25.00. Rosenblatt Securities reaffirmed a “buy” rating with a target price of $44.00. In total, two analysts have rated the stock as a sell, one as hold, and three as buy. The average rating is currently classified as a “Hold,” with a consensus target price of $27.60.

Overview of Applied Optoelectronics

Applied Optoelectronics, Inc. specializes in designing, manufacturing, and selling fiber-optic networking products across the United States, Taiwan, and China. Its product range includes optical modules, filters, lasers, and various components related to fiber-optic technology.

Applied, Optoelectronics, Options