Oak Ridge Investments LLC Takes Position in Applied Optoelectronics, Inc. $AAOI

Key Points

• Oak Ridge Investments bought a new position of 45,854 shares in Applied Optoelectronics (AAOI) in Q4 valued at about $1.6 million; institutional investors own 61.7% of the stock and Vanguard recently increased its stake to 4,624,570 shares (an added 551,910 shares, ~$119.9M).
• AAOI reported Q4 revenue of $134.27 million (up 33.9% YoY) and EPS of -$0.01 vs. a -$0.12 estimate, set Q1 guidance of -$0.09 to $0.00 EPS, and its shares were trading around $153.19 with a market cap near $11.5 billion.
• Corporate insiders have been net sellers recently, disposing of 322,399 shares worth about $29.26 million in the last 90 days (notable sales by David C. Kuo and Hung‑Lun Chang), leaving insiders with roughly 4.5% ownership.

Oak Ridge Investments LLC bought a new position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 45,854 shares of the semiconductor company's stock, valued at approximately $1,598,000. Oak Ridge Investments LLC owned 0.07% of Applied Optoelectronics at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Cinctive Capital Management LP bought a new position in Applied Optoelectronics during the 3rd quarter worth approximately $800,000. Diker Management LLC bought a new position in Applied Optoelectronics during the 3rd quarter worth approximately $519,000. Vanguard Group Inc. raised its holdings in Applied Optoelectronics by 13.6% during the 3rd quarter. Vanguard Group Inc. now owns 4,624,570 shares of the semiconductor company's stock worth $119,915,000 after purchasing an additional 551,910 shares during the last quarter. AI Squared Management Ltd bought a new position in Applied Optoelectronics during the 3rd quarter worth approximately $5,043,000. Finally, WT Asset Management Ltd bought a new position in Applied Optoelectronics during the 3rd quarter worth approximately $5,040,000. 61.70% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on AAOI shares. Wall Street Zen lowered shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a report on Monday. Northland Securities restated a "market perform" rating and set a $55.00 price target on shares of Applied Optoelectronics in a report on Friday, February 27th. B. Riley Financial upgraded shares of Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $54.00 price target for the company in a report on Friday, February 27th. Needham & Company LLC raised their price target on shares of Applied Optoelectronics from $43.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, February 27th. Finally, Rosenblatt Securities reiterated a "buy" rating and issued a $50.00 price objective on shares of Applied Optoelectronics in a research note on Thursday, February 19th. Three investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Applied Optoelectronics has a consensus rating of "Hold" and an average price target of $52.80.

Insider Buying and Selling

In other Applied Optoelectronics news, insider David C. Kuo sold 29,000 shares of the company's stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $100.13, for a total transaction of $2,903,770.00. Following the sale, the insider directly owned 82,663 shares of the company's stock, valued at $8,277,046.19. This represents a 25.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Hung-Lun (Fred) Chang sold 36,400 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $100.25, for a total transaction of $3,649,100.00. Following the completion of the transaction, the insider owned 233,618 shares in the company, valued at approximately $23,420,204.50. This trade represents a 13.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 322,399 shares of company stock worth $29,259,017 in the last ninety days. Corporate insiders own 4.50% of the company's stock.

Applied Optoelectronics Stock Performance

Shares of AAOI stock opened at $153.19 on Tuesday. The firm has a market capitalization of $11.52 billion, a PE ratio of -235.68 and a beta of 3.23. The firm has a fifty day simple moving average of $84.69 and a two-hundred day simple moving average of $50.37. The company has a current ratio of 2.63, a quick ratio of 1.91 and a debt-to-equity ratio of 0.18. Applied Optoelectronics, Inc. has a 12 month low of $9.71 and a 12 month high of $155.40.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last posted its quarterly earnings data on Thursday, February 26th. The semiconductor company reported ($0.01) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.12) by $0.11. The firm had revenue of $134.27 million for the quarter, compared to the consensus estimate of $131.56 million. Applied Optoelectronics had a negative net margin of 8.39% and a negative return on equity of 5.29%. The business's revenue for the quarter was up 33.9% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.02) EPS. Applied Optoelectronics has set its Q1 2026 guidance at -0.090-0.000 EPS. Analysts forecast that Applied Optoelectronics, Inc. will post -1.18 EPS for the current fiscal year.

About Applied Optoelectronics

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.

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