Applied Optoelectronics (NASDAQ:AAOI) Insider Sells 4,715 Shares of Stock

Applied Optoelectronics, Inc. (NASDAQ:AAOI) insider Shu-Hua (Joshua) Yeh sold 4,715 shares of Applied Optoelectronics stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $126.50, for a total value of $596,447.50. Following the completion of the sale, the insider directly owned 383,498 shares of the company’s stock, valued at approximately $48,512,497. This represents a 1.21% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Shu-Hua (Joshua) Yeh also recently made the following trade(s):

• On Tuesday, July 21st, Shu-Hua (Joshua) Yeh sold 1,285 shares of Applied Optoelectronics stock. The stock was sold at an average price of $120.02, for a total value of $154,225.70.
• On Thursday, June 18th, Shu-Hua (Joshua) Yeh sold 6,000 shares of Applied Optoelectronics stock. The stock was sold at an average price of $171.89, for a total value of $1,031,340.00.
• On Friday, June 12th, Shu-Hua (Joshua) Yeh sold 28,826 shares of Applied Optoelectronics stock. The stock was sold at an average price of $166.53, for a total transaction of $4,800,393.78.
• On Thursday, June 4th, Shu-Hua (Joshua) Yeh sold 10,000 shares of Applied Optoelectronics stock. The shares were sold at an average price of $205.07, for a total transaction of $2,050,700.00.
• On Tuesday, May 19th, Shu-Hua (Joshua) Yeh sold 39,154 shares of Applied Optoelectronics stock. The stock was sold at an average price of $173.26, for a total transaction of $6,783,822.04.

Applied Optoelectronics Trading Up 19.4%

NASDAQ:AAOI traded up $21.42 during trading hours on Tuesday, reaching $131.63. 20,896,489 shares of the company were exchanged, compared to its average volume of 10,501,665. The firm has a market cap of $10.56 billion, a price-to-earnings ratio of -199.44 and a beta of 3.69. The stock has a 50 day simple moving average of $140.63 and a 200 day simple moving average of $116.08. Applied Optoelectronics, Inc. has a 52-week low of $18.50 and a 52-week high of $233.67. The company has a debt-to-equity ratio of 0.18, a current ratio of 3.83 and a quick ratio of 3.03.

Applied Optoelectronics (NASDAQ:AAOI) last posted 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). The firm had revenue of $151.14 million for the quarter, compared to analysts’ expectations of $156.98 million. Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. Applied Optoelectronics’s revenue was up 51.3% on a year-over-year basis. During the same period last year, the firm posted ($0.02) EPS. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. As a group, analysts predict that Applied Optoelectronics, Inc. will post 0.6 EPS for the current year.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Wall Street Zen downgraded shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a research note on Monday, April 13th. Raymond James Financial reissued an “outperform” rating on shares of Applied Optoelectronics in a research report on Wednesday, June 10th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Applied Optoelectronics in a research report on Tuesday, July 7th. Rosenblatt Securities reiterated a “buy” rating and issued a $220.00 target price on shares of Applied Optoelectronics in a research note on Monday, June 22nd. Finally, Needham & Company LLC dropped their target price on Applied Optoelectronics from $260.00 to $220.00 and set a “buy” rating on the stock in a report on Wednesday, July 22nd. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $141.80.

Key Headlines Impacting Applied Optoelectronics

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

• Positive Sentiment: Reports that the U.S. may restrict Chinese-made optical and data-center components are driving a broader rally in optical-networking stocks. Investors see a potential benefit for Applied Optoelectronics if customers shift purchases toward U.S.-based suppliers. Applied Optoelectronics Rockets on Reported U.S. Ban of Chinese Optics
• Positive Sentiment: Investor enthusiasm is also tied to strong artificial-intelligence infrastructure demand, particularly for 800G optical products, along with continued growth in the company’s cable-TV networking business. Analysts and market commentary are anticipating another stronger quarter after recent revenue growth. Should You Buy, Sell or Hold AAOI Stock Ahead of Q2 Earnings?
• Positive Sentiment: Applied Optoelectronics is reportedly less exposed to the industry’s EML component shortage, giving investors confidence that it may be better positioned to fulfill demand ahead of the earnings release. Applied Optoelectronics Stock Climbs on EML Shortage Immunity
• Neutral Sentiment: Management will participate in a virtual fireside chat at Rosenblatt’s 6th Annual Technology Summit on August 18. The event could provide updates on AI demand, capacity and the earnings outlook, but it does not represent a new financial commitment. Applied Optoelectronics to Present at Rosenblatt’s Technology Summit
• Negative Sentiment: Risks ahead of the Q2 report include elevated valuation, production constraints and the possibility that supply limitations could prevent the company from fully capturing 800G demand. The stock’s recent surge also raises the risk of volatility if results or guidance disappoint. AAOI Earnings Outlook and Risks

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AAOI. Assenagon Asset Management S.A. bought a new stake in shares of Applied Optoelectronics during the first quarter valued at approximately $4,125,000. Andar Capital Management HK Ltd bought a new position in shares of Applied Optoelectronics during the 1st quarter valued at about $11,335,000. Next Century Growth Investors LLC bought a new position in shares of Applied Optoelectronics in the fourth quarter valued at $16,220,000. Swiss National Bank lifted its holdings in shares of Applied Optoelectronics by 9.8% during the first quarter. Swiss National Bank now owns 128,300 shares of the semiconductor company’s stock valued at $10,853,000 after purchasing an additional 11,500 shares during the last quarter. Finally, Penn Capital Management Company LLC boosted its holdings in shares of Applied Optoelectronics by 4.7% in the fourth quarter. Penn Capital Management Company LLC now owns 446,032 shares of the semiconductor company’s stock worth $15,565,000 after buying an additional 20,077 shares during the period. 61.70% of the stock is currently 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.