David Kuo Sells 12,000 Shares of Applied Optoelectronics (NASDAQ:AAOI) Stock

Applied Optoelectronics, Inc. (NASDAQ:AAOI) insider David Kuo sold 12,000 shares of the firm’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $45.05, for a total value of $540,600.00. Following the transaction, the insider owned 114,636 shares in the company, valued at approximately $5,164,351.80. This represents a 9.48% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Applied Optoelectronics Price Performance

NASDAQ AAOI traded up $4.04 on Friday, hitting $43.61. The company had a trading volume of 11,955,990 shares, compared to its average volume of 5,346,119. Applied Optoelectronics, Inc. has a 12-month low of $9.71 and a 12-month high of $48.31. The company’s fifty day moving average price is $33.29 and its 200-day moving average price is $29.13. The company has a debt-to-equity ratio of 0.23, a current ratio of 2.31 and a quick ratio of 1.63. The company has a market capitalization of $2.98 billion, a PE ratio of -13.54 and a beta of 3.26.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings data on Thursday, November 6th. The semiconductor company reported ($0.09) EPS for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.01. The company had revenue of $118.63 million during the quarter, compared to the consensus estimate of $119.77 million. Applied Optoelectronics had a negative net margin of 36.97% and a negative return on equity of 7.34%. Applied Optoelectronics’s quarterly revenue was up 82.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.21) EPS. Applied Optoelectronics has set its Q4 2025 guidance at -0.130–0.040 EPS. As a group, analysts predict that Applied Optoelectronics, Inc. will post -1.18 earnings per share for the current year.

Key Headlines Impacting Applied Optoelectronics

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: 800G product wins and Texas capacity build — Company announcements and reporting indicate AAOI has secured 800G orders tied to AI/datacenter customers and is scaling manufacturing in Texas to meet that demand; investors are treating this as a structural demand catalyst for higher‑margin, next‑generation optics. Applied Optoelectronics Secures 800G Order And Scales Texas For AI Demand
• Positive Sentiment: Analyst/upbeat outlook and buy recommendations — Recent coverage from retail and independent outlets highlighted an upbeat outlook and fresh buy recommendations after the company’s disclosures, supporting momentum as investors re-rate growth prospects tied to AI networking spend. Applied Optoelectronics (AAOI) Hits Nearly 8-Year High on Upbeat Outlook, Buy Reco
• Positive Sentiment: Technical breakout narrative — Independent commentary argues AAOI has cleared multi‑year moving averages (50‑ and 200‑week), signaling a structural breakout that attracted momentum buying from traders and some longer‑term investors. Applied Optoelectronics’ Breakout Is Just Beginning
• Neutral Sentiment: Coverage pieces explaining the rally — Several market writeups summarized why the stock jumped (800G wins, expansion, upgrade momentum), which amplified retail interest but doesn’t add new corporate fundamentals by itself. Why Applied Optoelectronics, Inc.’s (AAOI) Stock Is Up 17.97%
• Neutral Sentiment: Mixed signals on sustainability of the move — Zacks and other analysts note that while revenue upside and product wins are supportive, recent earnings‑estimate revisions and the company’s negative trailing margins mean the rally could be sentiment‑driven and may not yet be reflected in durable EPS improvements. Zacks Investment Ideas feature highlights: Applied Optoelectronics,Amazon, Oracle and Microsoft
• Negative Sentiment: Profit‑taking and volatility — After the run of gains and an 8‑year high, the stock experienced a sharp pullback on heavy volume as some investors took profits; expect continued intraday swings while the market digests whether 800G orders and capital expansion will translate into margin recovery and sustained earnings. Applied Optoelectronics (AAOI) falls 12.5% after 8-year high
• Neutral Sentiment: Short interest data uninformative — Recent short‑interest reporting showed anomalous/zero values and doesn’t provide a clear signal on positioning; monitor updated, reliable filings for true short‑squeeze risk. Short interest report (Jan 28)

Analyst Ratings Changes

AAOI has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Wednesday, January 21st. Rosenblatt Securities reiterated a “buy” rating and set a $50.00 price objective on shares of Applied Optoelectronics in a research note on Friday, December 19th. B. Riley reaffirmed a “sell” rating and set a $15.00 target price on shares of Applied Optoelectronics in a research note on Monday, November 10th. Needham & Company LLC increased their price objective on Applied Optoelectronics from $38.00 to $43.00 and gave the company a “buy” rating in a report on Thursday, December 11th. Finally, Northland Securities set a $45.00 target price on shares of Applied Optoelectronics in a research note on Thursday, December 11th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $35.60.

Hedge Funds Weigh In On Applied Optoelectronics

Several hedge funds and other institutional investors have recently modified their holdings of AAOI. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Applied Optoelectronics by 10.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company’s stock valued at $393,000 after buying an additional 2,415 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Applied Optoelectronics by 85.9% in the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company’s stock worth $46,000 after buying an additional 825 shares during the last quarter. Chung Wu Investment Group LLC purchased a new position in Applied Optoelectronics in the second quarter valued at $344,000. KLP Kapitalforvaltning AS raised its stake in shares of Applied Optoelectronics by 47.9% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 10,500 shares of the semiconductor company’s stock worth $270,000 after buying an additional 3,400 shares during the period. Finally, Sovereign Financial Group Inc. acquired a new position in shares of Applied Optoelectronics during the 2nd quarter worth about $287,000. 61.70% of the stock is owned by institutional investors.

Applied Optoelectronics Company Profile

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.

The company’s product portfolio spans small-form factor pluggable modules such as SFP+, QSFP+ and QSFP28 units, as well as more advanced form factors like CFP2 and OSFP for ultra-high-speed applications.