Ariose Capital Management Ltd Buys Shares of 104,000 Applied Optoelectronics, Inc. $AAOI

Key Points

• Ariose Capital Management disclosed a new stake in Applied Optoelectronics, buying 104,000 shares worth about $8.8 million in the first quarter. The position makes AAOI its 6th-largest holding and about 5.9% of its portfolio.
• Several other institutional investors also added to or initiated positions, and 61.70% of AAOI is owned by institutions. However, insiders have been net sellers, with 500,215 shares sold over the last three months worth about $86.7 million.
• Analyst sentiment is mixed: Rosenblatt kept a Buy rating with a $220 target, while Wall Street Zen downgraded the stock to Sell. The consensus rating is currently Hold with an average price target of $113.80.

Ariose Capital Management Ltd bought a new position in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 104,000 shares of the semiconductor company's stock, valued at approximately $8,797,000. Applied Optoelectronics accounts for 5.9% of Ariose Capital Management Ltd's investment portfolio, making the stock its 6th largest holding. Ariose Capital Management Ltd owned about 0.13% of Applied Optoelectronics at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the company. Allworth Financial LP increased its position in shares of Applied Optoelectronics by 1,923.7% in the 4th quarter. Allworth Financial LP now owns 769 shares of the semiconductor company's stock valued at $27,000 after buying an additional 731 shares in the last quarter. Comerica Bank acquired a new stake in Applied Optoelectronics during the 3rd quarter worth $28,000. Northwestern Mutual Wealth Management Co. lifted its holdings in Applied Optoelectronics by 166.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company's stock worth $42,000 after acquiring an additional 750 shares in the last quarter. Kohmann Bosshard Financial Services LLC bought a new position in Applied Optoelectronics during the fourth quarter worth about $55,000. Finally, Krilogy Financial LLC bought a new position in Applied Optoelectronics during the first quarter worth about $151,000. 61.70% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

AAOI has been the subject of several research analyst reports. Rosenblatt Securities reiterated a "buy" rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a research report on Monday, June 22nd. Wall Street Zen downgraded shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a report on Monday, April 13th. Finally, Raymond James Financial reaffirmed an "outperform" rating on shares of Applied Optoelectronics in a research note on Wednesday, June 10th. Three analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $113.80.

Insider Buying and Selling

In other Applied Optoelectronics news, Director Cynthia Delaney sold 56,575 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $189.23, for a total transaction of $10,705,687.25. Following the transaction, the director owned 59,647 shares of the company's stock, valued at $11,287,001.81. The trade was a 48.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of the company's stock in a transaction that occurred on 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 owned 286,124 shares in the company, valued at approximately $48,812,754.40. This represents a 12.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 500,215 shares of company stock worth $86,716,414 over the last three months. Company insiders own 3.80% of the company's stock.

Applied Optoelectronics Stock Performance

Shares of AAOI opened at $120.95 on Friday. Applied Optoelectronics, Inc. has a 12 month low of $18.50 and a 12 month high of $233.67. The firm has a fifty day simple moving average of $167.83 and a 200 day simple moving average of $104.98. The stock has a market capitalization of $9.71 billion, a price-to-earnings ratio of -183.26 and a beta of 3.69. The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The business had revenue of $151.14 million during the quarter, compared to analyst estimates of $156.98 million. During the same quarter in the previous year, the firm posted ($0.02) earnings per share. The firm's quarterly revenue was up 51.3% on a year-over-year basis. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Research analysts forecast that Applied Optoelectronics, Inc. will post 0.6 EPS for the current fiscal year.

Applied Optoelectronics Profile

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.

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