Emerald Mutual Fund Advisers Trust Lowers Position in Applied Optoelectronics, Inc. $AAOI

Key Points

• Emerald Mutual Fund Advisers Trust cut its stake in Applied Optoelectronics by 31.9% in the first quarter, though AAOI still represented about 1.1% of its portfolio and was valued at roughly $23 million.
• Insider selling was significant: CEO Chih-Hsiang Lin and insider Fred Chang both sold shares in June, and insiders sold 496,215 shares worth about $86.2 million over the last 90 days.
• Applied Optoelectronics reported a mixed quarterly result, missing EPS and revenue estimates even as revenue rose 51.3% year over year; analysts currently have a consensus Hold rating with a $113.80 price target.

Emerald Mutual Fund Advisers Trust lessened its stake in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 31.9% in the 1st quarter, according to its most recent disclosure with the SEC. The firm owned 271,760 shares of the semiconductor company's stock after selling 127,290 shares during the period. Applied Optoelectronics accounts for about 1.1% of Emerald Mutual Fund Advisers Trust's investment portfolio, making the stock its 23rd biggest holding. Emerald Mutual Fund Advisers Trust owned approximately 0.34% of Applied Optoelectronics worth $22,988,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors have also bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Applied Optoelectronics by 10.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,579 shares of the semiconductor company's stock valued at $393,000 after buying an additional 2,415 shares in the last quarter. Cetera Investment Advisers bought a new position in shares of Applied Optoelectronics in the second quarter worth approximately $377,000. New York State Common Retirement Fund boosted its position in shares of Applied Optoelectronics by 36.0% in the second quarter. New York State Common Retirement Fund now owns 17,000 shares of the semiconductor company's stock worth $437,000 after purchasing an additional 4,500 shares during the period. Invesco Ltd. increased its stake in shares of Applied Optoelectronics by 50.0% in the second quarter. Invesco Ltd. now owns 60,817 shares of the semiconductor company's stock worth $1,562,000 after purchasing an additional 20,261 shares in the last quarter. Finally, First Trust Advisors LP purchased a new stake in shares of Applied Optoelectronics in the second quarter worth $952,000. Hedge funds and other institutional investors own 61.70% of the company's stock.

Insider Buying and Selling

In related news, insider Hung-Lun (Fred) Chang sold 40,329 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the completion of the transaction, the insider directly owned 286,124 shares of the company's stock, valued at approximately $48,812,754.40. This represents a 12.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $166.53, for a total value of $9,825,270.00. Following the transaction, the chief executive officer owned 1,302,436 shares of the company's stock, valued at $216,894,667.08. This represents a 4.33% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 496,215 shares of company stock valued at $86,170,414 in the last ninety days. Company insiders own 3.80% of the company's stock.

Applied Optoelectronics Stock Performance

Shares of NASDAQ AAOI opened at $111.88 on Tuesday. The company has a debt-to-equity ratio of 0.18, a quick ratio of 3.03 and a current ratio of 3.83. The company has a market cap of $8.98 billion, a P/E ratio of -169.52 and a beta of 3.69. The firm's fifty day moving average is $163.96 and its two-hundred day moving average is $109.09. Applied Optoelectronics, Inc. has a 52-week low of $18.50 and a 52-week high of $233.67.

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

Analyst Ratings Changes

AAOI has been the subject of a number of analyst reports. Rosenblatt Securities reiterated a "buy" rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Monday, June 22nd. Wall Street Zen downgraded Applied Optoelectronics from a "hold" rating to a "sell" rating in a research report on Monday, April 13th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Applied Optoelectronics in a research note on Tuesday, July 7th. Finally, Raymond James Financial reiterated an "outperform" rating on shares of Applied Optoelectronics in a research report on Wednesday, June 10th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $113.80.

Applied Optoelectronics Company 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.

Want to see what other hedge funds are holding AAOI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.