21,168 Shares of Applied Optoelectronics, Inc. $AAOI Acquired by Capstone Capital Management Ltd

Key Points

• Capstone Capital Management acquired 21,168 shares of Applied Optoelectronics, valued at approximately $2.1 million, while institutional investors collectively own 61.7% of the company.
• Analyst sentiment is mixed: three analysts rate AAOI a Buy, two a Hold, and one a Sell, producing an overall “Hold” rating and a consensus price target of $147.
• AAOI reported quarterly EPS of $0.06 versus estimates of $0.02, with revenue rising 86.3% year over year to $191.92 million; however, the company remains unprofitable, and insiders have sold more than $6.5 million in shares over the past 90 days.

Capstone Capital Management Ltd bought a new stake in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor bought 21,168 shares of the semiconductor company's stock, valued at approximately $2,101,000. Applied Optoelectronics accounts for about 0.8% of Capstone Capital Management Ltd's portfolio, making the stock its 19th largest holding.

Other institutional investors have also bought and sold shares of the company. SteelPeak Wealth LLC bought a new stake in shares of Applied Optoelectronics in the third quarter valued at approximately $578,000. IFP Advisors Inc grew its stake in Applied Optoelectronics by 47.8% during the third quarter. IFP Advisors Inc now owns 1,925 shares of the semiconductor company's stock valued at $191,000 after acquiring an additional 623 shares in the last quarter. Vontobel Holding Ltd. lifted its stake in Applied Optoelectronics by 50.3% in the 3rd quarter. Vontobel Holding Ltd. now owns 5,835 shares of the semiconductor company's stock worth $579,000 after purchasing an additional 1,954 shares in the last quarter. TD Waterhouse Canada Inc. boosted its holdings in Applied Optoelectronics by 2,785.6% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 5,800 shares of the semiconductor company's stock valued at $623,000 after purchasing an additional 5,599 shares during the period. Finally, Fortitude Advisory Group L.L.C. bought a new position in shares of Applied Optoelectronics in the third quarter worth $632,000. Hedge funds and other institutional investors own 61.70% of the company's stock.

Wall Street Analysts Forecast Growth

AAOI has been the topic of a number of recent analyst reports. Needham & Company LLC lowered their target price on shares of Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Rosenblatt Securities reiterated a "buy" rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday, August 7th. Wall Street Zen upgraded shares of 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 Applied Optoelectronics from $109.00 to $92.00 and set a "neutral" rating on the stock in a research note on Thursday, October 15th. Finally, Weiss Ratings lowered shares of Applied Optoelectronics from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, August 17th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $147.00.

Applied Optoelectronics Stock Down 1.9%

AAOI stock opened at $76.74 on Wednesday. Applied Optoelectronics, Inc. has a twelve month low of $18.50 and a twelve month high of $233.67. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. The business has a 50 day moving average of $108.14 and a 200 day moving average of $133.12. The firm has a market cap of $6.49 billion, a PE ratio of -98.38 and a beta of 3.85.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share 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 analyst estimates of $190.48 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The firm's revenue for the quarter was up 86.3% on a year-over-year basis. During the same period in the previous 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 forecast that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insider Transactions at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 4,000 shares of the stock in a transaction that occurred on Monday, October 12th. The stock was sold at an average price of $102.87, for a total transaction of $411,480.00. Following the completion of the transaction, the chief financial officer directly owned 363,168 shares of the company's stock, valued at approximately $37,359,092.16. This represents a 1.09% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 Monday, October 5th. The shares were sold at an average price of $120.03, for a total value of $720,180.00. Following the transaction, the insider owned 371,498 shares of the company's stock, valued at $44,590,904.94. This represents a 1.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 56,887 shares of company stock valued at $6,581,484 over the last 90 days. Company insiders own 3.80% of the company's stock.

About Applied Optoelectronics

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.

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