Key Points
- CFO Stefan Murry sold 4,000 shares of Applied Optoelectronics at an average price of $102.87, generating approximately $411,480 under a pre-arranged Rule 10b5-1 plan. He continues to own 363,168 shares.
- AAOI shares opened at $86.22 after falling 11.8%, despite the company exceeding quarterly EPS and revenue estimates and reporting 86.3% year-over-year revenue growth.
- Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $139.40; broader concerns about AI infrastructure spending and potential share dilution are weighing on the stock.
Applied Optoelectronics, Inc. (NASDAQ:AAOI - Get Free Report) CFO Stefan Murry sold 4,000 shares of the stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total transaction of $411,480.00. Following the transaction, the chief financial officer directly owned 363,168 shares of the company's stock, valued at $37,359,092.16. This trade represents a 1.09% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Applied Optoelectronics Trading Down 11.8%
Shares of Applied Optoelectronics stock opened at $86.22 on Thursday. The firm has a market cap of $7.29 billion, a price-to-earnings ratio of -110.54 and a beta of 3.85. The business has a 50-day moving average price of $112.40 and a 200-day moving average price of $133.41. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. Applied Optoelectronics, Inc. has a twelve month low of $18.50 and a twelve month high of $233.67.
Applied Optoelectronics (NASDAQ:AAOI - Get Free Report) last issued its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share (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 analysts' expectations of $190.48 million. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. The business's revenue was up 86.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.16) earnings per share. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. Equities research analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.
Wall Street Analyst Weigh In
AAOI has been the topic of a number of research reports. Weiss Ratings downgraded Applied Optoelectronics from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, August 17th. B. Riley Financial reiterated a "neutral" rating on shares of Applied Optoelectronics in a research report on Friday, August 7th. Raymond James Financial reissued an "outperform" rating and issued a $178.00 target price on shares of Applied Optoelectronics in a report on Tuesday, August 11th. Needham & Company LLC cut their target price on shares of Applied Optoelectronics from $220.00 to $190.00 and set a "buy" rating for the company in a report on Friday, August 7th. Finally, Rosenblatt Securities restated a "buy" rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research report on Friday, August 7th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $139.40.
Get Our Latest Report on Applied Optoelectronics
Key Applied Optoelectronics News
Here are the key news stories impacting Applied Optoelectronics this week:
- Positive Sentiment: Recent business momentum remains a potential support: Applied Optoelectronics reported record second-quarter 2026 revenue of $191.9 million, returned to non-GAAP profitability, and exceeded analysts’ EPS and revenue expectations. A technical indicator also suggested the pullback could create a “buy the dip” opportunity. Struggling Photonics Stock Flashing Buy the Dip Signal
- Neutral Sentiment: AAOI has been one of the strongest optical-connectivity stocks in 2026, but its substantial prior gains and recent pullback have prompted investors to debate whether to take profits or remain exposed to the AI infrastructure theme. Applied Optoelectronics Is Up 175% in 2026 and Lumentum Is Up 164%
- Negative Sentiment: Investors are reassessing whether aggressive AI infrastructure spending will generate attractive returns, pressuring AAOI along with Coherent and Lumentum. This broader AI-optics selloff was cited as the primary reason for the stock’s decline. Applied Optoelectronics Dives as AI Funding Fears Hit Optical Stocks
- Negative Sentiment: CFO Stefan Murry sold 4,000 shares for approximately $411,480 under a pre-arranged Rule 10b5-1 plan. Although the sale was modest relative to his remaining holdings, it adds to sentiment pressure because AAOI insiders have reported sales and no purchases in recent months. SEC Insider Ownership Filing
- Negative Sentiment: The company’s previously disclosed at-the-market program, which permits up to $600 million in share sales, remains a potential dilution and share-supply overhang.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. raised its position in 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 purchasing an additional 243 shares during the period. Allworth Financial LP lifted its stake in shares of Applied Optoelectronics by 68.8% in the 2nd quarter. Allworth Financial LP now owns 596 shares of the semiconductor company's stock valued at $88,000 after purchasing an additional 243 shares during the last quarter. Polaris Financial Partners bought a new stake in shares of Applied Optoelectronics in the 3rd quarter valued at approximately $26,000. EFG International AG bought a new stake in shares of Applied Optoelectronics in the 2nd quarter valued at approximately $44,000. Finally, Persistent Asset Partners Ltd purchased a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $47,000. Hedge funds and other institutional investors own 61.70% of the company's stock.
About Applied Optoelectronics
(
Get Free Report)
Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.
The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.
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