Applied Optoelectronics (NASDAQ:AAOI) Director William Yeh Sells 15,000 Shares of Stock

Applied Optoelectronics, Inc. (NASDAQ:AAOI) Director William Yeh sold 15,000 shares of the stock in a transaction dated Monday, March 9th. The stock was sold at an average price of $105.76, for a total value of $1,586,400.00. Following the completion of the sale, the director owned 238,819 shares of the company’s stock, valued at $25,257,497.44. This trade represents a 5.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Applied Optoelectronics Trading Up 8.9%

AAOI opened at $120.49 on Wednesday. The stock has a market capitalization of $9.06 billion, a P/E ratio of -185.37 and a beta of 3.20. The firm’s fifty day simple moving average is $51.24 and its 200 day simple moving average is $36.69. Applied Optoelectronics, Inc. has a 12 month low of $9.71 and a 12 month high of $127.39. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.18.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.11. The company had revenue of $134.27 million for the quarter, compared to the consensus estimate of $131.56 million. Applied Optoelectronics had a negative net margin of 8.39% and a negative return on equity of 5.29%. The firm’s revenue was up 33.9% compared to the same quarter last year. During the same period last year, the company earned ($0.02) earnings per share. Applied Optoelectronics has set its Q1 2026 guidance at -0.090-0.000 EPS. As a group, research analysts anticipate that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts recently issued reports on AAOI shares. Weiss Ratings restated a “sell (d-)” rating on shares of Applied Optoelectronics in a research note on Wednesday, January 21st. B. Riley Financial upgraded shares of Applied Optoelectronics from a “sell” rating to a “neutral” rating and set a $54.00 price target on the stock in a research report on Friday, February 27th. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, February 28th. Northland Securities restated a “market perform” rating and set a $55.00 price objective on shares of Applied Optoelectronics in a research report on Friday, February 27th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and issued a $50.00 price objective on shares of Applied Optoelectronics in a research note on Thursday, February 19th. Three research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $52.80.

Applied Optoelectronics News Roundup

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

• Positive Sentiment: Company hit an all‑time high after announcing a new supply deal and expansion that underpins capacity to meet hyperscaler demand. Applied Optoelectronics (AAOI) hits all-time high on new supply deal, expansion
• Positive Sentiment: Received its first volume order for 1.6T data‑center transceivers from a major hyperscaler — a direct revenue/capacity catalyst if ramps stick. Applied Optoelectronics climbs after receiving first volume order for its 1.6T data center transceivers
• Positive Sentiment: Market reports of a large transceiver order (reported ~ $200M) add near‑term revenue visibility and help justify higher multiple on growth expectations. Applied Optoelectronics stock rises on $200M transceiver order
• Positive Sentiment: Reported solid Q4 revenue and margin improvement (revenue up ~34% YoY; gross margin expansion) that underpin management’s 800G/1.6T ramp thesis. Applied Optoelectronics, Inc. (AAOI) Posts Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst/sector pieces highlight the AI/photonics thematic lift (800G, 1.6T demand) that’s driving multiple expansion, but they stress execution/timing will determine how much revenue actually flows. AAOI Bets on 800G Ramp, 1.6T Optics & Texas Scale to Power AI Growth
• Neutral Sentiment: Short‑interest data posted in filings looks noisy/zeroed in recent reports and doesn’t provide a clear bearish signal — likely not a driver right now.
• Negative Sentiment: Multiple insider sales disclosed this week (directors and the CFO sold shares), which can be perceived as profit‑taking or signal reduced insider conviction near current highs. SEC filings available for the trades. SEC insider sale filing (William H. Yeh)
• Negative Sentiment: Analysts warn the stock has already rallied massively (700%+ in a year); execution risk (capacity, product mix, timing of hyperscaler orders), rising costs and possible tariff headwinds create downside risk if ramps slip. Applied Optoelectronics: After a 700% Run, Can Execution Keep Up?
• Negative Sentiment: Management’s near‑term EPS guidance remains negative for Q1 (range implies continued early‑stage profitability risk), so the stock is priced for strong operational execution — any miss would likely trigger pullbacks.

Hedge Funds Weigh In On Applied Optoelectronics

A number of large investors have recently modified their holdings of the company. Comerica Bank raised its holdings in shares of Applied Optoelectronics by 27.6% in the fourth quarter. Comerica Bank now owns 1,386 shares of the semiconductor company’s stock valued at $48,000 after purchasing an additional 300 shares during the last quarter. AlphaQuest LLC grew its holdings in shares of Applied Optoelectronics by 7.9% in the third quarter. AlphaQuest LLC now owns 7,503 shares of the semiconductor company’s stock valued at $195,000 after acquiring an additional 551 shares in the last quarter. Police & Firemen s Retirement System of New Jersey lifted its holdings in Applied Optoelectronics by 3.6% during the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 16,073 shares of the semiconductor company’s stock worth $560,000 after acquiring an additional 556 shares during the period. Allworth Financial LP grew 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 valued at $27,000 after purchasing an additional 731 shares during the period. Finally, Northwestern Mutual Wealth Management Co. raised its stake in shares of Applied Optoelectronics by 166.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 750 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.