Engineers Gate Manager LP Sells 18,999 Shares of Applied Optoelectronics, Inc. $AAOI

Key Points

• Engineers Gate Manager LP cut its Applied Optoelectronics stake by 65.8%, selling 18,999 shares and retaining 9,892 shares valued at approximately $1.47 million.
• Institutional ownership remains significant at 61.7%, with BlackRock, Renaissance Technologies and William Blair among investors establishing new positions.
• Applied Optoelectronics exceeded quarterly earnings and revenue expectations, with revenue rising 86.3% year over year, but analysts maintain a consensus “Hold” rating and an average price target of $139.40.

Engineers Gate Manager LP reduced its holdings in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 65.8% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,892 shares of the semiconductor company's stock after selling 18,999 shares during the quarter. Engineers Gate Manager LP's holdings in Applied Optoelectronics were worth $1,466,000 at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of Applied Optoelectronics during the second quarter worth approximately $955,672,000. Renaissance Technologies LLC acquired a new stake in shares of Applied Optoelectronics in the 1st quarter valued at $47,817,000. William Blair Investment Management LLC bought a new stake in shares of Applied Optoelectronics during the second quarter worth $74,703,000. Next Century Growth Investors LLC bought a new stake in shares of Applied Optoelectronics during the fourth quarter worth $16,220,000. Finally, Kennedy Capital Management LLC acquired a new position in shares of Applied Optoelectronics during the fourth quarter valued at $15,586,000. 61.70% of the stock is currently owned by institutional investors.

Applied Optoelectronics Price Performance

Shares of AAOI opened at $98.06 on Friday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. The stock has a 50 day simple moving average of $112.66 and a 200 day simple moving average of $132.85. Applied Optoelectronics, Inc. has a 52-week low of $18.50 and a 52-week high of $233.67. The firm has a market capitalization of $8.29 billion, a PE ratio of -125.72 and a beta of 3.79.

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

Analyst Upgrades and Downgrades

AAOI has been the topic of a number of recent research reports. B. Riley Financial reaffirmed a "neutral" rating on shares of Applied Optoelectronics in a research note on Friday, August 7th. Raymond James Financial reiterated an "outperform" rating and set a $178.00 target price on shares of Applied Optoelectronics in a research report on Tuesday, August 11th. Needham & Company LLC cut their price target on Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Weiss Ratings lowered Applied Optoelectronics from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, August 17th. Finally, Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Three 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, the company presently has a consensus rating of "Hold" and a consensus target price of $139.40.

Insiders Place Their Bets

In other news, insider Hung-Lun Chang sold 32,172 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $110.21, for a total transaction of $3,545,676.12. Following the completion of the transaction, the insider directly owned 249,276 shares of the company's stock, valued at $27,472,707.96. This trade represents a 11.43% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $147.73, for a total transaction of $886,380.00. Following the completion of the sale, the insider owned 377,498 shares in the company, valued at $55,767,779.54. The trade was a 1.56% decrease in their ownership of the stock. 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 sold a total of 52,172 shares of company stock valued at $6,092,409 in the last quarter. 3.80% of the stock is currently owned by insiders.

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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