Gallo Partners LP Acquires New Position in Applied Optoelectronics, Inc. $AAOI

Gallo Partners LP bought a new position in Applied Optoelectronics, Inc. (NASDAQ:AAOI) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 4,826 shares of the semiconductor company’s stock, valued at approximately $715,000. Applied Optoelectronics makes up about 1.6% of Gallo Partners LP’s portfolio, making the stock its 26th biggest holding.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in Applied Optoelectronics during the second quarter valued at approximately $955,672,000. Vanguard Group Inc. increased its stake in shares of Applied Optoelectronics by 7.7% in the fourth quarter. Vanguard Group Inc. now owns 4,982,660 shares of the semiconductor company’s stock worth $173,696,000 after purchasing an additional 358,090 shares in the last quarter. Invesco Ltd. raised its position in shares of Applied Optoelectronics by 5,208.9% during the 4th quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock valued at $122,439,000 after purchasing an additional 3,446,150 shares during the period. Price T Rowe Associates Inc. MD raised its position in shares of Applied Optoelectronics by 5,321.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock valued at $77,730,000 after purchasing an additional 2,188,630 shares during the period. Finally, Hawk Ridge Capital Management LP lifted its stake in shares of Applied Optoelectronics by 106.2% during the 4th quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock valued at $59,293,000 after buying an additional 875,903 shares in the last quarter. Institutional investors own 61.70% of the company’s stock.

Wall Street Analyst Weigh In

AAOI has been the subject of a number of analyst reports. Rosenblatt Securities reiterated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Friday, August 7th. Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings cut Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. 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. Finally, Needham & Company LLC lowered their price target on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating on the stock in a report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $139.40.

Insider Activity

In other news, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total value of $6,880,127.40. Following the sale, the insider directly owned 286,124 shares of the company’s stock, valued at approximately $48,812,754.40. The trade was a 12.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. Murry sold 33,000 shares of the business’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.53, for a total value of $5,495,490.00. Following the completion of the sale, the chief financial officer owned 384,576 shares in the company, valued at $64,043,441.28. This represents a 7.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 329,204 shares of company stock valued at $56,587,341. 3.80% of the stock is owned by corporate insiders.

Applied Optoelectronics Stock Performance

AAOI opened at $124.82 on Monday. The stock has a market capitalization of $10.56 billion, a price-to-earnings ratio of -160.03 and a beta of 3.76. The company has a fifty day moving average of $127.73 and a 200 day moving average of $125.42. Applied Optoelectronics, Inc. has a fifty-two week low of $18.50 and a fifty-two week high of $233.67. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78.

Applied Optoelectronics (NASDAQ:AAOI) last announced its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04. The company had revenue of $191.92 million for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.16) EPS. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, sell-side analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

About Applied Optoelectronics

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.