Applied Optoelectronics, Inc. $AAOI Stake Lowered by Funde Sino Life Insurance Co Ltd

Funde Sino Life Insurance Co Ltd cut its holdings in Applied Optoelectronics, Inc. (NASDAQ:AAOI) by 58.8% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 49,591 shares of the semiconductor company’s stock after selling 70,715 shares during the quarter. Applied Optoelectronics makes up 2.7% of Funde Sino Life Insurance Co Ltd’s portfolio, making the stock its 3rd largest position. Funde Sino Life Insurance Co Ltd’s holdings in Applied Optoelectronics were worth $4,922,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in AAOI. Polaris Financial Partners bought a new stake in shares of Applied Optoelectronics during the third quarter valued at approximately $26,000. EFG International AG bought a new position in Applied Optoelectronics during the second quarter worth about $44,000. Persistent Asset Partners Ltd bought a new position in shares of Applied Optoelectronics during the 2nd quarter valued at about $47,000. Fiduciary Financial Advisors acquired a new position in shares of Applied Optoelectronics in the second quarter valued at approximately $48,000. Finally, Integrated Wealth Concepts LLC bought a new position in Applied Optoelectronics during the 2nd quarter worth about $58,000. 61.70% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Rosenblatt Securities reduced their price objective on shares of Applied Optoelectronics from $220.00 to $115.00 and set a “buy” rating for the company in a research note on Friday. Raymond James Financial restated an “outperform” rating and issued a $178.00 price target on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a research report on Saturday, August 8th. B. Riley Financial reduced their price objective on shares of Applied Optoelectronics from $92.00 to $45.00 and set a “neutral” rating for the company in a research report on Friday. Finally, Needham & Company LLC cut their price objective on shares of Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a report on Friday. Four research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $111.60.

Applied Optoelectronics News Roundup

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

• Positive Sentiment: Third-quarter results beat estimates: adjusted earnings were $0.17 per share versus $0.14 expected, while revenue of $269.9 million rose 127.5% year over year. The company also reported a sixth consecutive quarter of record revenue and a return to GAAP profitability. Third-quarter results
• Positive Sentiment: Datacenter and CATV sales benefited from demand for 800G transceivers and record broadband equipment shipments. Management also cited accelerating demand for 1.6T products and a potential $1 billion–$1.5 billion hyperscaler deal, supporting the growth outlook. Q3 sales and demand
• Positive Sentiment: A rebound in AI optical stocks is providing a favorable sector backdrop, with investors revisiting recent earnings across the group. AI optical stocks rally
• Negative Sentiment: Fourth-quarter revenue guidance of $385 million–$420 million falls short of the $427.3 million consensus estimate, despite an EPS range that brackets expectations. Component shortages and delays ramping manufacturing capacity—including U.S. expansion issues—could limit the company’s ability to meet demand. Earnings call and capacity delays
• Negative Sentiment: Analysts lowered price targets: B. Riley cut its target to $45 and assigned a neutral rating, while Rosenblatt reduced its target to $115 but maintained a buy rating. The mixed revisions reflect uncertainty following the stock’s volatility. B. Riley analyst rating

Applied Optoelectronics Trading Up 6.9%

AAOI stock traded up $3.24 during trading on Friday, reaching $50.13. The company had a trading volume of 21,665,772 shares, compared to its average volume of 12,628,997. The company has a market cap of $4.24 billion, a P/E ratio of -116.58 and a beta of 4.04. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.78 and a quick ratio of 2.13. Applied Optoelectronics, Inc. has a 52 week low of $18.50 and a 52 week high of $233.67. The business has a 50 day moving average of $92.96 and a 200 day moving average of $113.25.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings results on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.03. The business had revenue of $269.88 million during the quarter, compared to analyst estimates of $268.11 million. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. Applied Optoelectronics’s revenue for the quarter was up 127.5% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.09) earnings per share. As a group, sell-side analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Stefan J. Murry sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $102.87, for a total value of $411,480.00. Following the completion of the sale, the chief financial officer directly owned 363,168 shares in the company, valued at $37,359,092.16. The trade was a 1.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $147.73, for a total value of $886,380.00. Following the completion of the sale, the insider directly owned 377,498 shares of the company’s stock, valued at approximately $55,767,779.54. This represents a 1.56% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 52,172 shares of company stock worth $5,985,036. Corporate insiders own 3.80% of the company’s stock.

Applied Optoelectronics Profile

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.