Bank of America Corp DE Makes New Investment in Applied Optoelectronics, Inc. $AAOI

Key Points

• Bank of America acquired 227,539 shares of Applied Optoelectronics in the second quarter, valued at approximately $33.7 million and representing 0.27% of the company. Institutional investors collectively own 61.7% of AAOI.
• Applied Optoelectronics reported quarterly revenue of $191.9 million, up 86.3% year over year, and earnings of $0.06 per share—beating analysts’ $0.02 estimate. Despite the improvement, the company posted a negative net margin of 9.57%.
• AAOI shares opened at $107, while analysts maintain a consensus “Hold” rating with an average price target of $139.40. Insiders have sold 52,172 shares worth approximately $6.1 million over the past 90 days.

Bank of America Corp DE acquired a new position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 227,539 shares of the semiconductor company's stock, valued at approximately $33,712,000. Bank of America Corp DE owned 0.27% of Applied Optoelectronics as of its most recent SEC filing.

Other hedge funds have also bought and sold shares of the company. BlackRock Inc. acquired a new position in Applied Optoelectronics in the second quarter valued at approximately $955,672,000. Renaissance Technologies LLC bought a new position in shares of Applied Optoelectronics during the 1st quarter worth approximately $47,817,000. William Blair Investment Management LLC acquired a new stake in shares of Applied Optoelectronics during the 2nd quarter worth approximately $74,703,000. Next Century Growth Investors LLC acquired a new stake in shares of Applied Optoelectronics during the 4th quarter worth approximately $16,220,000. Finally, Kennedy Capital Management LLC bought a new stake in shares of Applied Optoelectronics in the 4th quarter valued at $15,586,000. Institutional investors own 61.70% of the company's stock.

Applied Optoelectronics Stock Performance

Shares of AAOI stock opened at $107.00 on Wednesday. The firm has a market capitalization of $9.05 billion, a PE ratio of -137.18 and a beta of 3.79. The firm has a fifty day simple moving average of $111.93 and a two-hundred day simple moving average of $133.01. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. Applied Optoelectronics, Inc. has a 12 month low of $18.50 and a 12 month high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, beating analysts' consensus estimates of $0.02 by $0.04. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The firm had revenue of $191.92 million for the quarter, compared to analyst estimates of $190.48 million. During the same period last year, the firm earned ($0.16) earnings per share. The business's quarterly revenue was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. Analysts forecast that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Insiders Place Their Bets

In other Applied Optoelectronics news, insider Hung-Lun Chang sold 32,172 shares of the business's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the sale, the insider directly owned 249,276 shares of the company's stock, valued at approximately $27,472,707.96. The trade was a 11.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Shu-Hua Yeh sold 6,000 shares of the firm's stock in a transaction that occurred on 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 owned 377,498 shares in the company, valued at $55,767,779.54. This represents a 1.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 52,172 shares of company stock valued at $6,092,409. Corporate insiders own 3.80% of the company's stock.

Analysts Set New Price Targets

AAOI has been the topic of a number of research reports. Rosenblatt Securities reiterated a "buy" rating and set a $220.00 target price on shares of Applied Optoelectronics in a research report on Friday, August 7th. Wall Street Zen raised shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings lowered shares of Applied Optoelectronics from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, August 17th. Needham & Company LLC cut their price objective on shares of Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, Raymond James Financial reissued an "outperform" rating and set a $178.00 price objective on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Applied Optoelectronics presently has a consensus rating of "Hold" and an average price target of $139.40.

Applied Optoelectronics Profile

Applied Optoelectronics, Inc develops and manufactures fiber-optic networking products and components. Its offerings include optical transceivers, transponders, modules and related equipment used to transmit data over fiber-optic networks.

The company serves several communications markets, including data centers, telecommunications, broadband access and cable television. Its products support applications such as high-speed data transmission, cloud computing, network infrastructure and fiber-based broadband services.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics serves customers in North America, Asia and other international markets.

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