UBS Group AG Has $33.15 Million Stake in Applied Optoelectronics, Inc. $AAOI

Key Points

• UBS Group AG cut its Applied Optoelectronics stake by 6.7% in the fourth quarter, though it still held 951,065 shares valued at about $33.15 million.
• Applied Optoelectronics reported Q1 revenue growth of 51.3% year over year to $151.1 million, but it missed earnings and revenue estimates, posting a loss of $0.07 per share versus expectations for a $0.05 loss.
• The company’s Q2 guidance also came in below Wall Street expectations, and the stock fell about 5.5% amid softer sentiment in the AI optics trade despite strong demand signals.

UBS Group AG trimmed its position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 6.7% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 951,065 shares of the semiconductor company's stock after selling 67,926 shares during the quarter. UBS Group AG owned approximately 1.39% of Applied Optoelectronics worth $33,154,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also made changes to their positions in AAOI. Comerica Bank acquired a new stake in shares of Applied Optoelectronics during the 3rd quarter valued at about $28,000. Headlands Technologies LLC acquired a new stake in shares of Applied Optoelectronics during the 2nd quarter valued at about $57,000. Wexford Capital LP acquired a new stake in shares of Applied Optoelectronics during the 3rd quarter valued at about $95,000. CoreCap Advisors LLC lifted its holdings in shares of Applied Optoelectronics by 711.4% during the 3rd quarter. CoreCap Advisors LLC now owns 5,712 shares of the semiconductor company's stock valued at $148,000 after buying an additional 5,008 shares during the last quarter. Finally, Tower Research Capital LLC TRC lifted its holdings in shares of Applied Optoelectronics by 244.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,832 shares of the semiconductor company's stock valued at $176,000 after buying an additional 4,846 shares during the last quarter. 61.70% of the stock is currently owned by institutional investors and hedge funds.

Applied Optoelectronics Stock Down 5.5%

AAOI opened at $148.94 on Friday. The business has a 50 day moving average price of $119.57 and a 200 day moving average price of $64.55. Applied Optoelectronics, Inc. has a twelve month low of $12.56 and a twelve month high of $191.87. The company has a debt-to-equity ratio of 0.18, a quick ratio of 1.91 and a current ratio of 2.63. The firm has a market cap of $11.92 billion, a P/E ratio of -225.67 and a beta of 3.76.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued 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 business had revenue of $151.14 million during the quarter, compared to the consensus estimate of $156.98 million. Applied Optoelectronics had a negative return on equity of 5.72% and a negative net margin of 8.55%.The business's quarterly revenue was up 51.3% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.02) earnings per share. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. Research analysts forecast that Applied Optoelectronics, Inc. will post 0.66 EPS for the current year.

Key Applied Optoelectronics News

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: Revenue rose 51% year over year to $151.1 million, showing continued demand for Applied Optoelectronics’ AI/datacom products, and the company said it shipped its first 800G volumes to a hyperscale customer. Applied Optoelectronics Reports First Quarter 2026 Results
• Positive Sentiment: Analyst commentary pointed to a large Amazon backlog and strong 800G transceiver demand as reasons the stock has found support despite the earnings miss. Applied Optoelectronics inches up due to large Amazon backlog: analysts
• Neutral Sentiment: The company announced small inducement equity grants to two new employees under its 2023 equity plan, a routine hiring-related item with limited immediate financial impact. Applied Optoelectronics Announces Equity Grants To Employees Under Inducement Plan
• Negative Sentiment: Q1 earnings missed expectations, with a loss of $0.07 per share versus an estimated loss of $0.05 and revenue below consensus, raising concerns about execution and margins. Applied Optoelectronics (AAOI) Reports Q1 Loss, Misses Revenue Estimates
• Negative Sentiment: Second-quarter guidance also came in below Wall Street’s revenue and EPS expectations, which likely pressured the shares even after the strong top-line growth. Applied Optoelectronics stock page
• Negative Sentiment: Several market reports noted the stock dropping as investors rotated out of the AI optics trade, suggesting sentiment cooled across the sector after a rapid run-up. Applied Optoelectronics Crashes 14%, Coherent Slides 10%, Lumentum Falls 7% as Optics Trade Cools

Analyst Upgrades and Downgrades

AAOI has been the subject of several research reports. Northland Securities reiterated a "market perform" rating and set a $55.00 price target on shares of Applied Optoelectronics in a report on Friday, February 27th. Needham & Company LLC boosted their target price on Applied Optoelectronics from $43.00 to $80.00 and gave the stock a "buy" rating in a report on Friday, February 27th. Wall Street Zen lowered Applied Optoelectronics from a "hold" rating to a "sell" rating in a report on Monday, April 13th. B. Riley Financial upgraded Applied Optoelectronics from a "sell" rating to a "neutral" rating and set a $54.00 target price for the company in a report on Friday, February 27th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Applied Optoelectronics in a report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $79.80.

Insider Buying and Selling

In other Applied Optoelectronics news, insider Shu-Hua (Joshua) Yeh sold 50,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, March 9th. The stock was sold at an average price of $97.10, for a total value of $4,855,000.00. Following the transaction, the insider directly owned 322,051 shares of the company's stock, valued at $31,271,152.10. The trade was a 13.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Cynthia Delaney sold 21,000 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $98.02, for a total value of $2,058,420.00. Following the completion of the transaction, the director directly owned 116,222 shares in the company, valued at approximately $11,392,080.44. This represents a 15.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 314,333 shares of company stock worth $29,262,106. 3.80% of the stock is currently owned by company insiders.

Applied Optoelectronics 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.

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