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

Shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) were down 6.4% 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 changed hands during mid-day trading, a decline of 80% from the average daily 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 firm’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $120.03, for a total transaction of $720,180.00. Following the sale, the insider owned 371,498 shares of the company’s stock, valued at $44,590,904.94. This trade represents a 1.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several analysts have commented on AAOI shares. Needham & Company LLC decreased their price target on shares of Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research report on Friday, August 7th. Raymond James Financial reiterated an “outperform” rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Rosenblatt Securities restated a “buy” rating and issued a $220.00 target price on shares of Applied Optoelectronics in a research note on Friday, August 7th. Wall Street Zen raised 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 report on Friday, August 7th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $139.40.

Applied Optoelectronics Trading Down 13.6%

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

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

Institutional Investors Weigh In On Applied Optoelectronics

A number of large investors have recently made changes to their positions in the stock. GAMMA Investing LLC increased its holdings in shares of Applied Optoelectronics by 32.9% in the third quarter. GAMMA Investing LLC now owns 2,475 shares of the semiconductor company’s stock valued at $246,000 after purchasing an additional 613 shares during the period. Farther Finance Advisors LLC boosted its holdings in shares of Applied Optoelectronics by 46.6% in the 3rd quarter. Farther Finance Advisors LLC now owns 1,051 shares of the semiconductor company’s stock valued at $104,000 after acquiring an additional 334 shares during the last quarter. Venture Visionary Partners LLC boosted its holdings in shares of Applied Optoelectronics by 61.2% in the 3rd quarter. Venture Visionary Partners LLC now owns 3,759 shares of the semiconductor company’s stock valued at $373,000 after acquiring an additional 1,427 shares during the last quarter. Polaris Financial Partners acquired a new stake in shares of Applied Optoelectronics in the third quarter worth $26,000. Finally, Silicon Valley Capital Partners purchased a new position in shares of Applied Optoelectronics during the second quarter worth $444,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

Applied Optoelectronics Company Profile

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.