Traders Purchase High Volume of Put Options on Applied Optoelectronics (NASDAQ:AAOI)

Key Points

• Applied Optoelectronics saw a significant increase in options trading, with 16,216 put options purchased, marking an 8% rise over the average volume.
• Insider trading includes a notable purchase by Director Min-Chu (Mike) Chen of 7,500 shares, increasing his ownership by 50% to 22,500 shares.
• Hedge funds hold 61.72% of Applied Optoelectronics' stock, with several institutional investors significantly increasing their stakes in the last quarter.

Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) was the target of some unusual options trading activity on Friday. Traders acquired 16,216 put options on the stock. Thisisanincreaseofapproximately8% compared to the typical volume of 15,084 put options.

Applied Optoelectronics Stock Down 5.1%

AAOI stock traded down $1.29 during midday trading on Monday, hitting $24.20. The company's stock had a trading volume of 3,695,546 shares, compared to its average volume of 5,597,275. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.47 and a current ratio of 2.11. Applied Optoelectronics has a 52-week low of $9.13 and a 52-week high of $44.50. The firm has a 50-day simple moving average of $25.18 and a 200-day simple moving average of $19.94.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The semiconductor company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The business had revenue of $102.95 million during the quarter, compared to analysts' expectations of $104.96 million. During the same period in the prior year, the business earned ($0.28) EPS. The business's quarterly revenue was up 137.9% on a year-over-year basis. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. As a group, equities analysts predict that Applied Optoelectronics will post -1.18 EPS for the current year.

Analyst Ratings Changes

AAOI has been the subject of a number of research analyst reports. Needham & Company LLC initiated coverage on shares of Applied Optoelectronics in a research report on Friday, July 25th. They set a "buy" rating and a $32.00 price objective for the company. Wall Street Zen cut shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Raymond James Financial increased their price objective on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Wolfe Research initiated coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. Finally, B. Riley reaffirmed a "neutral" rating and set a $15.00 price objective (up previously from $13.00) on shares of Applied Optoelectronics in a research report on Friday, August 8th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $27.20.

Insiders Place Their Bets

In other news, Director Min-Chu (Mike) Chen purchased 7,500 shares of the company's stock in a transaction dated Wednesday, August 13th. The stock was acquired at an average price of $22.91 per share, with a total value of $171,825.00. Following the purchase, the director directly owned 22,500 shares in the company, valued at approximately $515,475. This represents a 50.00% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Hung-Lun (Fred) Chang sold 15,784 shares of the stock in a transaction that occurred on Wednesday, August 13th. The shares were sold at an average price of $22.70, for a total transaction of $358,296.80. Following the completion of the sale, the insider directly owned 256,326 shares of the company's stock, valued at approximately $5,818,600.20. This trade represents a 5.80% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have bought 44,100 shares of company stock worth $1,000,878 and have sold 32,784 shares worth $741,217. Corporate insiders own 4.50% of the company's stock.

Institutional Investors Weigh In On Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of AAOI. Nisa Investment Advisors LLC raised its holdings in shares of Applied Optoelectronics by 497.5% in the 2nd 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 in the last quarter. AlphaQuest LLC raised its holdings in shares of Applied Optoelectronics by 243.9% in the 1st quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock valued at $35,000 after purchasing an additional 1,629 shares in the last quarter. GAMMA Investing LLC raised its stake in Applied Optoelectronics by 85.9% during the 2nd quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock worth $46,000 after acquiring an additional 825 shares in the last quarter. Pinpoint Asset Management Singapore Pte. Ltd. acquired a new stake in Applied Optoelectronics during the 2nd quarter worth $49,000. Finally, CWM LLC lifted its position in Applied Optoelectronics by 175.5% in the second quarter. CWM LLC now owns 2,218 shares of the semiconductor company's stock valued at $57,000 after acquiring an additional 1,413 shares during the last quarter. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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.