Chung Wu Investment Group LLC Invests $344,000 in Applied Optoelectronics, Inc. $AAOI

Key Points

• Chung Wu Investment Group LLC invested $344,000 in Applied Optoelectronics, acquiring 13,400 shares of the semiconductor company during the second quarter.
• Applied Optoelectronics reported a EPS of ($0.16) for the latest quarter, which fell short of analysts' expectations by $0.08, but showed a 137.9% increase in revenue year-over-year.
• Insider trading showed increased confidence, with Director William H. Yeh purchasing 14,000 shares, while CFO Stefan J. Murry sold 12,000 shares, marking significant activity among company insiders.

Chung Wu Investment Group LLC acquired a new stake in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 13,400 shares of the semiconductor company's stock, valued at approximately $344,000.

Other large investors also recently bought and sold shares of the company. AlphaQuest LLC boosted its position in Applied Optoelectronics by 243.9% during the first quarter. AlphaQuest LLC now owns 2,297 shares of the semiconductor company's stock valued at $35,000 after purchasing an additional 1,629 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Applied Optoelectronics by 85.9% in the 2nd quarter. GAMMA Investing LLC now owns 1,785 shares of the semiconductor company's stock valued at $46,000 after buying an additional 825 shares in the last quarter. Quantbot Technologies LP purchased a new position in shares of Applied Optoelectronics in the 1st quarter worth approximately $66,000. State of Wyoming bought a new position in shares of Applied Optoelectronics during the 1st quarter worth approximately $77,000. Finally, Twin Tree Management LP lifted its position in Applied Optoelectronics by 15,573.4% during the first quarter. Twin Tree Management LP now owns 10,031 shares of the semiconductor company's stock valued at $154,000 after acquiring an additional 9,967 shares during the last quarter. Institutional investors own 61.72% of the company's stock.

Applied Optoelectronics Trading Down 0.2%

AAOI opened at $27.93 on Monday. The firm has a market capitalization of $1.74 billion, a price-to-earnings ratio of -8.31 and a beta of 2.92. The company's 50 day simple moving average is $24.93 and its two-hundred day simple moving average is $20.86. Applied Optoelectronics, Inc. has a 1-year low of $9.71 and a 1-year high of $44.50. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.11 and a quick ratio of 1.47.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The firm had revenue of $102.95 million during the quarter, compared to analysts' expectations of $104.96 million. During the same period in the prior year, the company posted ($0.28) EPS. The company's revenue for the quarter was up 137.9% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. Analysts expect that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director William H. Yeh bought 14,000 shares of the stock in a transaction that occurred on Wednesday, August 13th. The stock was purchased at an average cost of $22.86 per share, with a total value of $320,040.00. Following the purchase, the director directly owned 249,819 shares of the company's stock, valued at $5,710,862.34. This trade represents a 5.94% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Stefan J. Murry sold 12,000 shares of Applied Optoelectronics stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $22.37, for a total transaction of $268,440.00. Following the completion of the transaction, the chief financial officer owned 298,477 shares of the company's stock, valued at $6,676,930.49. This represents a 3.87% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have bought 44,100 shares of company stock valued at $1,000,878 and have sold 30,784 shares valued at $709,117. 4.50% of the stock is owned by company insiders.

Analysts Set New Price Targets

AAOI has been the subject of several analyst reports. B. Riley reiterated a "neutral" rating and set a $15.00 price objective (up previously from $13.00) on shares of Applied Optoelectronics in a report on Friday, August 8th. Wall Street Zen cut Applied Optoelectronics from a "hold" rating to a "sell" rating in a research note on Saturday, August 9th. Wolfe Research initiated coverage on Applied Optoelectronics in a research note on Tuesday, July 8th. They set a "peer perform" rating on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Applied Optoelectronics in a report on Saturday, September 27th. Finally, Raymond James Financial lifted their target price on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Applied Optoelectronics currently has an average rating of "Hold" and a consensus target price of $27.20.

Applied Optoelectronics Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.

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