California State Teachers Retirement System Purchases 12,610,847 Shares of Applied Optoelectronics, Inc. $AAOI

California State Teachers Retirement System grew its position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 17,896.9% during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 12,681,311 shares of the semiconductor company's stock after buying an additional 12,610,847 shares during the quarter. California State Teachers Retirement System owned 15.00% of Applied Optoelectronics worth $1,878,863,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Allworth Financial LP increased its position in Applied Optoelectronics by 1,923.7% in the fourth quarter. Allworth Financial LP now owns 769 shares of the semiconductor company's stock worth $27,000 after buying an additional 731 shares during the last quarter. Comerica Bank purchased a new position in Applied Optoelectronics in the 3rd quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. raised its holdings in Applied Optoelectronics by 166.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company's stock valued at $42,000 after acquiring an additional 750 shares during the period. EFG International AG bought a new stake in Applied Optoelectronics during the 2nd quarter valued at $44,000. Finally, Persistent Asset Partners Ltd bought a new stake in Applied Optoelectronics during the 2nd quarter valued at $47,000. Hedge funds and other institutional investors own 61.70% of the company's stock.

Applied Optoelectronics Stock Performance

Applied Optoelectronics stock opened at $105.36 on Friday. 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 company has a market capitalization of $8.91 billion, a P/E ratio of -135.08 and a beta of 3.79. The stock's 50 day moving average is $114.43 and its 200 day moving average is $131.36. Applied Optoelectronics, Inc. has a twelve month low of $18.50 and a twelve 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 the consensus estimate 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 during the quarter, compared to analysts' expectations of $190.48 million. During the same period in the previous year, the company earned ($0.16) earnings per share. The firm's quarterly revenue was up 86.3% on a year-over-year basis. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. On average, equities research analysts predict that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Hung-Lun Chang sold 40,329 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $170.60, for a total value of $6,880,127.40. Following the completion of the transaction, the insider owned 286,124 shares of the company's stock, valued at approximately $48,812,754.40. This trade represents a 12.35% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Stefan J. Murry sold 4,000 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $105.33, for a total value of $421,320.00. Following the transaction, the chief financial officer directly owned 367,168 shares in the company, valued at approximately $38,673,805.44. This represents a 1.08% 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. Insiders have sold 98,501 shares of company stock worth $14,003,877 over the last ninety days. Corporate insiders own 3.80% of the company's stock.

Applied Optoelectronics News Roundup

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: Applied Optoelectronics is expanding capacity for 800G and 1.6T optical products as AI infrastructure investment drives demand for faster data-center connectivity. The growth opportunity strengthens AAOI’s competitive position against larger rivals such as Lumentum and Coherent. AAOI's Optical Networking Demand Rise: Can It Beat LITE and COHR?
• Positive Sentiment: The company is expanding its operating footprint through the acquisition of a Houston facility, a move that could provide additional manufacturing or operational capacity to support expected customer demand. Applied Optoelectronics Expands Operations with Houston Facility Acquisition
• Neutral Sentiment: Analysts and investors continue comparing AAOI with networking and optical-component peers, including Arista Networks. The comparison highlights the company’s AI-networking opportunity but also its smaller scale, losses and high valuation risk. Critical Analysis: Arista Networks versus Applied Optoelectronics
• Negative Sentiment: Chief Financial Officer Stefan Murry sold 4,000 shares worth approximately $421,000, while director Hung-Lun Fred Chang previously sold 32,172 shares worth about $3.5 million. Murry’s transaction was conducted under a pre-arranged Rule 10b5-1 plan and he retains a substantial position, reducing—but not eliminating—the bearish signal.

Analyst Ratings Changes

Several research analysts have recently weighed in on AAOI shares. Wall Street Zen raised shares of Applied Optoelectronics from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. B. Riley Financial restated a "neutral" rating on shares of Applied Optoelectronics in a research note on Friday, August 7th. Weiss Ratings cut 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 Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating for the company in a report on Friday, August 7th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday, August 7th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $139.40.

About Applied Optoelectronics

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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