Hsbc Holdings PLC Purchases 24,222 Shares of Applied Optoelectronics, Inc. $AAOI

Key Points

• HSBC Holdings increased its Applied Optoelectronics stake by 460.2% in the second quarter, purchasing 24,222 shares and bringing its total holdings to 29,485 shares valued at approximately $4.3 million. Institutional investors collectively own 61.7% of the company.
• Applied Optoelectronics reported quarterly EPS of $0.06, exceeding the $0.02 analyst consensus, while revenue rose 86.3% year over year to $191.92 million. The company issued third-quarter 2026 EPS guidance of $0.11 to $0.26.
• Analyst sentiment remains mixed, with a consensus rating of Hold and an average price target of $139.40; the stock recently opened at $103.29, well below its 52-week high of $233.67.

Hsbc Holdings PLC grew its holdings in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 460.2% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 29,485 shares of the semiconductor company's stock after purchasing an additional 24,222 shares during the quarter. Hsbc Holdings PLC's holdings in Applied Optoelectronics were worth $4,302,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of AAOI. Geneos Wealth Management Inc. lifted its position in shares of Applied Optoelectronics by 1.4% during the first quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company's stock valued at $1,529,000 after buying an additional 243 shares during the last quarter. Comerica Bank grew its position in shares of Applied Optoelectronics by 27.6% in the 4th quarter. Comerica Bank now owns 1,386 shares of the semiconductor company's stock worth $48,000 after buying an additional 300 shares during the last quarter. EFG International AG bought a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $44,000. Persistent Asset Partners Ltd bought a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $47,000. Finally, Fiduciary Financial Advisors purchased a new stake in Applied Optoelectronics during the second quarter valued at approximately $48,000. Hedge funds and other institutional investors own 61.70% of the company's stock.

Applied Optoelectronics Price Performance

Applied Optoelectronics stock opened at $103.29 on Friday. The firm has a market capitalization of $8.74 billion, a price-to-earnings ratio of -132.42 and a beta of 3.79. 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 fifty day simple moving average of $114.74 and a 200-day simple moving average of $131.55. 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 posted its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 EPS 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 company had revenue of $191.92 million for the quarter, compared to analysts' expectations of $190.48 million. During the same quarter in the prior year, the company posted ($0.16) earnings per share. Applied Optoelectronics's revenue for the quarter 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. On average, equities analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have recently commented on AAOI shares. Rosenblatt Securities reiterated a "buy" rating and set a $220.00 price objective on shares of Applied Optoelectronics in a report on Friday, August 7th. Raymond James Financial restated an "outperform" rating and set a $178.00 target price on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. Needham & Company LLC reduced their target price on Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Wall Street Zen upgraded Applied Optoelectronics from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Finally, Weiss Ratings cut Applied Optoelectronics from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, August 17th. 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 company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $139.40.

Insider Transactions at Applied Optoelectronics

In related news, CFO Stefan J. Murry sold 4,000 shares of Applied Optoelectronics stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $105.33, for a total transaction of $421,320.00. Following the completion of the sale, the chief financial officer owned 367,168 shares in the company, valued at approximately $38,673,805.44. This trade represents a 1.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shu-Hua Yeh sold 6,000 shares of the company's stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $171.89, for a total transaction of $1,031,340.00. Following the completion of the transaction, the insider owned 394,207 shares in the company, valued at approximately $67,760,241.23. This trade represents a 1.50% 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 98,501 shares of company stock valued at $14,003,877 in the last ninety days. Corporate insiders own 3.80% of the company's stock.

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.

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.