Applied Optoelectronics (NASDAQ:AAOI) Stock Falls 6.4% on Insider Selling

Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s share price traded down 6.4% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $120.60 and last traded at $121.8230. Approximately 2,011,705 shares were traded during mid-day trading, a decline of 80% from the average session volume of 10,192,755 shares. The stock had previously closed at $130.16.

Specifically, insider Shu-Hua Yeh sold 6,000 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $120.03, for a total transaction of $720,180.00. Following the transaction, the insider directly owned 371,498 shares in the company, valued at approximately $44,590,904.94. This represents a 1.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on AAOI shares. Needham & Company LLC dropped their target price on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Rosenblatt Securities reiterated a “buy” rating and set a $220.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 7th. Raymond James Financial reissued an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, B. Riley Financial reaffirmed a “neutral” rating on shares of Applied Optoelectronics in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $139.40.

Applied Optoelectronics Trading Down 13.6%

The company has a market capitalization of $8.96 billion, a P/E ratio of -135.77 and a beta of 3.85. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. The company’s fifty day simple moving average is $113.81 and its 200-day simple moving average is $133.60.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.02 by $0.04. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%.The firm had revenue of $191.92 million during the quarter, compared to analyst estimates of $190.48 million. During the same period in the previous year, the company posted ($0.16) EPS. The business’s revenue for the quarter was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. Research analysts predict that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Institutional Investors Weigh In On Applied Optoelectronics

Several institutional investors have recently bought and sold shares of AAOI. BlackRock Inc. acquired a new position in Applied Optoelectronics during the 2nd quarter valued at about $955,672,000. Renaissance Technologies LLC acquired a new position in shares of Applied Optoelectronics during the first quarter valued at about $47,817,000. William Blair Investment Management LLC acquired a new position in shares of Applied Optoelectronics during the second quarter valued at about $74,703,000. Next Century Growth Investors LLC purchased a new position in shares of Applied Optoelectronics in the 4th quarter valued at approximately $16,220,000. Finally, Kennedy Capital Management LLC acquired a new stake in Applied Optoelectronics in the 4th quarter worth approximately $15,586,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

About Applied Optoelectronics

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.

The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.