Applied Optoelectronics, Inc. $AAOI Stock Sold by Funde Sino Life Insurance Co Ltd

Key Points

• Funde Sino Life Insurance cut its Applied Optoelectronics stake by 58.8% in the third quarter, selling 70,715 shares; it retained 49,591 shares, still its third-largest portfolio holding.
• Third-quarter results beat estimates: adjusted EPS was $0.17 versus $0.14 expected, and revenue rose 127.5% year over year to $269.9 million. However, fourth-quarter revenue guidance of $385 million–$420 million trails consensus, with component shortages and manufacturing delays posing risks.
• Analyst views are mixed: the stock has a “Moderate Buy” consensus and a $111.60 average price target, while some firms recently cut their targets sharply.

Funde Sino Life Insurance Co Ltd cut its stake in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 58.8% in the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 49,591 shares of the semiconductor company's stock after selling 70,715 shares during the period. Applied Optoelectronics accounts for approximately 2.7% of Funde Sino Life Insurance Co Ltd's portfolio, making the stock its 3rd largest position. Funde Sino Life Insurance Co Ltd owned 0.06% of Applied Optoelectronics worth $4,922,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Applied Optoelectronics in the 2nd quarter worth about $955,672,000. William Blair Investment Management LLC bought a new position in shares of Applied Optoelectronics during the second quarter valued at approximately $74,703,000. Renaissance Technologies LLC purchased a new position in shares of Applied Optoelectronics in the 1st quarter worth about $47,817,000. Bank of America Corp DE bought a new position in Applied Optoelectronics in the 2nd quarter valued at approximately $33,712,000. Finally, Bank of New York Mellon Corp bought a new stake in Applied Optoelectronics in the 2nd quarter worth about $32,567,000. Institutional investors own 61.70% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Northland Securities upgraded Applied Optoelectronics from a "market perform" rating to an "outperform" rating and set a $120.00 price target for the company in a research note on Monday, November 2nd. Raymond James Financial reissued an "outperform" rating and issued a $178.00 price objective on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Rosenblatt Securities lowered their target price on shares of Applied Optoelectronics from $220.00 to $115.00 and set a "buy" rating for the company in a report on Friday. B. Riley Financial lowered their price target on Applied Optoelectronics from $92.00 to $45.00 and set a "neutral" rating for the company in a report on Friday. Finally, Wall Street Zen raised shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Four analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $111.60.

Key Stories Impacting Applied Optoelectronics

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

Insiders Place Their Bets

In other news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction dated 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 transaction, the insider directly owned 377,498 shares of the company's stock, valued at approximately $55,767,779.54. The trade was a 1.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the firm's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total value of $3,545,676.12. Following the transaction, the insider directly owned 249,276 shares in the company, valued at $27,472,707.96. This trade represents a 11.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 52,172 shares of company stock valued at $5,985,036 in the last ninety days. Corporate insiders own 3.80% of the company's stock.

Applied Optoelectronics Stock Up 6.9%

Shares of AAOI traded up $3.24 during midday trading on Friday, reaching $50.13. The stock had a trading volume of 21,665,772 shares, compared to its average volume of 12,628,997. 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 1-year low of $18.50 and a 1-year high of $233.67. The company has a market cap of $4.24 billion, a price-to-earnings ratio of -116.58 and a beta of 4.04. The company's fifty day simple moving average is $92.96 and its two-hundred day simple moving average is $113.25.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.03. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. The company had revenue of $269.88 million during the quarter, compared to analysts' expectations of $268.11 million. During the same period last year, the firm earned ($0.09) EPS. The firm's revenue for the quarter was up 127.5% on a year-over-year basis. Equities research analysts expect that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Applied Optoelectronics Company 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.

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