Min-Chu (Mike) Chen Purchases 7,500 Shares of Applied Optoelectronics (NASDAQ:AAOI) Stock

Key Points

• Director Min-Chu (Mike) Chen purchased 7,500 shares of Applied Optoelectronics stock for $171,825, increasing his ownership by 50%.
• Applied Optoelectronics reported a quarterly loss of ($0.16) EPS, missing the consensus estimate, while revenue was $102.95 million, up 137.9% year-over-year.
• Institutional investors significantly increased their stakes in Applied Optoelectronics, with Nisa Investment Advisors growing its stake by 497.5% in the second quarter.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) Director Min-Chu (Mike) Chen acquired 7,500 shares of the firm's stock in a transaction dated Wednesday, August 13th. The shares were acquired at an average price of $22.91 per share, for a total transaction of $171,825.00. Following the acquisition, the director directly owned 22,500 shares of the company's stock, valued at approximately $515,475. The trade was a 50.00% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Applied Optoelectronics Trading Down 9.7%

Shares of AAOI stock traded down $2.5330 during mid-day trading on Tuesday, hitting $23.5970. 3,445,879 shares of the company's stock were exchanged, compared to its average volume of 4,431,695. Applied Optoelectronics, Inc. has a fifty-two week low of $8.43 and a fifty-two week high of $44.50. The stock has a 50-day simple moving average of $24.09 and a two-hundred day simple moving average of $20.19. The company has a quick ratio of 1.47, a current ratio of 2.11 and a debt-to-equity ratio of 0.36. The stock has a market cap of $1.47 billion, a price-to-earnings ratio of -7.02 and a beta of 2.72.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.08). Applied Optoelectronics had a negative return on equity of 10.60% and a negative net margin of 42.29%.The business had revenue of $102.95 million for the quarter, compared to analyst estimates of $104.96 million. During the same quarter last year, the business earned ($0.28) EPS. Applied Optoelectronics's revenue for the quarter was up 137.9% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. Equities analysts expect that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

AAOI has been the topic of a number of research analyst reports. Wall Street Zen cut Applied Optoelectronics from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Wolfe Research initiated coverage on Applied Optoelectronics in a report on Tuesday, July 8th. They issued a "peer perform" rating on the stock. B. Riley reiterated a "neutral" rating and issued a $15.00 target price (up previously from $13.00) on shares of Applied Optoelectronics in a report on Friday, August 8th. Northland Securities set a $30.00 target price on Applied Optoelectronics in a report on Friday, August 8th. Finally, Needham & Company LLC initiated coverage on Applied Optoelectronics in a report on Friday, July 25th. They issued a "buy" rating and a $32.00 target price on the stock. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $27.20.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. Nisa Investment Advisors LLC boosted its holdings in Applied Optoelectronics by 497.5% in the second quarter. Nisa Investment Advisors LLC now owns 962 shares of the semiconductor company's stock valued at $25,000 after purchasing an additional 801 shares during the last quarter. Sterling Capital Management LLC boosted its holdings in Applied Optoelectronics by 858.2% in the fourth quarter. Sterling Capital Management LLC now owns 1,284 shares of the semiconductor company's stock valued at $47,000 after purchasing an additional 1,150 shares during the last quarter. Canada Pension Plan Investment Board purchased a new position in Applied Optoelectronics in the fourth quarter valued at about $63,000. GAMMA Investing LLC boosted its holdings in Applied Optoelectronics by 85.9% in the second quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock valued at $46,000 after purchasing an additional 825 shares during the last quarter. Finally, Pinpoint Asset Management Singapore Pte. Ltd. purchased a new position in Applied Optoelectronics in the second quarter valued at about $49,000. Institutional investors and hedge funds own 61.72% of the company's stock.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.