Vanguard Group Inc. Purchases 350,145 Shares of Applied Optoelectronics, Inc. $AAOI

Key Points

• Vanguard Group Inc. increased its position in Applied Optoelectronics by 14.4% in Q1, owning approximately 5.01% of the company worth $42.67 million.
• Applied Optoelectronics reported Q2 earnings of ($0.16) per share, missing estimates and showing a negative net margin of 42.29%, despite a 137.9% year-over-year revenue increase.
• Wall Street analysts have mixed ratings on the stock, with an average target price of $27.20 and ratings ranging from "buy" to "sell."

Vanguard Group Inc. boosted its holdings in Applied Optoelectronics, Inc. (NASDAQ:AAOI - Free Report) by 14.4% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,779,563 shares of the semiconductor company's stock after acquiring an additional 350,145 shares during the quarter. Vanguard Group Inc. owned 5.01% of Applied Optoelectronics worth $42,666,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. Guggenheim Capital LLC bought a new stake in Applied Optoelectronics in the 4th quarter worth approximately $357,000. ProShare Advisors LLC bought a new stake in Applied Optoelectronics in the 4th quarter worth approximately $423,000. Arizona State Retirement System grew its position in Applied Optoelectronics by 15.9% in the 1st quarter. Arizona State Retirement System now owns 13,036 shares of the semiconductor company's stock worth $200,000 after purchasing an additional 1,790 shares during the period. GAMMA Investing LLC grew its position in Applied Optoelectronics by 9,789.9% in the 1st quarter. GAMMA Investing LLC now owns 14,736 shares of the semiconductor company's stock worth $2,260,000 after purchasing an additional 14,587 shares during the period. Finally, The Manufacturers Life Insurance Company grew its position in Applied Optoelectronics by 11.4% in the 4th quarter. The Manufacturers Life Insurance Company now owns 16,333 shares of the semiconductor company's stock worth $602,000 after purchasing an additional 1,666 shares during the period. Institutional investors own 61.72% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have commented on AAOI. Wall Street Zen downgraded shares of Applied Optoelectronics from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Needham & Company LLC began coverage on shares of Applied Optoelectronics in a research report on Friday, July 25th. They issued a "buy" rating and a $32.00 target price for the company. B. Riley reaffirmed a "neutral" rating and issued a $15.00 target price (up previously from $13.00) on shares of Applied Optoelectronics in a research report on Friday, August 8th. Wolfe Research assumed coverage on shares of Applied Optoelectronics in a research report on Tuesday, July 8th. They issued a "peer perform" rating for the company. Finally, Raymond James Financial boosted their price objective on shares of Applied Optoelectronics from $18.00 to $25.00 and gave the company an "outperform" rating in a research report on Friday, August 8th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Applied Optoelectronics presently has a consensus rating of "Moderate Buy" and an average target price of $27.20.

Applied Optoelectronics Stock Performance

Shares of AAOI stock traded down $1.29 during mid-day trading on Friday, reaching $24.20. 3,695,546 shares of the company's stock traded hands, compared to its average volume of 5,597,275. Applied Optoelectronics, Inc. has a 12 month low of $9.13 and a 12 month high of $44.50. The firm has a 50 day moving average price of $25.18 and a two-hundred day moving average price of $19.94. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.47 and a current ratio of 2.11. The firm has a market capitalization of $1.51 billion, a PE ratio of -7.20 and a beta of 2.91.

Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The semiconductor company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.08). Applied Optoelectronics had a negative net margin of 42.29% and a negative return on equity of 10.60%. The business had revenue of $102.95 million for the quarter, compared to the consensus estimate of $104.96 million. During the same period in the previous year, the firm earned ($0.28) EPS. The company's revenue was up 137.9% on a year-over-year basis. Applied Optoelectronics has set its Q3 2025 guidance at -0.100--0.030 EPS. On average, research analysts forecast that Applied Optoelectronics, Inc. will post -1.18 EPS for the current year.

Insider Activity

In related news, CFO Stefan J. Murry sold 12,000 shares of the company's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $22.37, for a total value of $268,440.00. Following the completion of the transaction, the chief financial officer owned 298,477 shares of the company's stock, valued at approximately $6,676,930.49. This represents a 3.87% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Chih-Hsiang (Thompson) Lin bought 3,250 shares of the company's stock in a transaction that occurred on Wednesday, August 13th. The stock was purchased at an average cost of $22.65 per share, with a total value of $73,612.50. Following the acquisition, the chief executive officer directly owned 1,655,415 shares in the company, valued at $37,495,149.75. This trade represents a 0.20% increase in their position. The disclosure for this purchase can be found here. Over the last 90 days, insiders have purchased 44,100 shares of company stock worth $1,000,878 and have sold 32,784 shares worth $741,217. 4.50% of the stock is currently owned by insiders.

Applied Optoelectronics Profile

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.