Brookstone Capital Management Makes New Investment in Applied Optoelectronics, Inc. $AAOI

Brookstone Capital Management acquired a new position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 6,391 shares of the semiconductor company’s stock, valued at approximately $541,000.

A number of other hedge funds and other institutional investors also recently modified their holdings of AAOI. Allworth Financial LP boosted its holdings in Applied Optoelectronics by 1,923.7% in the 4th quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock valued at $27,000 after purchasing an additional 731 shares during the period. Comerica Bank bought a new position in Applied Optoelectronics in the third quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. raised its holdings in shares of Applied Optoelectronics by 166.7% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after buying an additional 750 shares in the last quarter. Kohmann Bosshard Financial Services LLC bought a new stake in shares of Applied Optoelectronics during the 4th quarter worth $55,000. Finally, Headlands Technologies LLC bought a new position in Applied Optoelectronics in the 2nd quarter valued at approximately $57,000. Institutional investors and hedge funds own 61.70% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on AAOI shares. Raymond James Financial restated an “outperform” rating on shares of Applied Optoelectronics in a research report on Wednesday, June 10th. Wall Street Zen lowered shares of Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price objective on shares of Applied Optoelectronics in a report on Monday, June 22nd. Three equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Applied Optoelectronics currently has an average rating of “Hold” and a consensus target price of $113.80.

Applied Optoelectronics Stock Performance

NASDAQ AAOI opened at $136.01 on Friday. The company’s 50 day moving average is $169.85 and its 200-day moving average is $101.36. The firm has a market cap of $10.91 billion, a P/E ratio of -206.07 and a beta of 3.66. Applied Optoelectronics, Inc. has a 12-month low of $18.50 and a 12-month high of $233.67. The company has a quick ratio of 3.03, a current ratio of 3.83 and a debt-to-equity ratio of 0.18.

Applied Optoelectronics (NASDAQ:AAOI) last issued its earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.02). The business had revenue of $151.14 million for the quarter, compared to the consensus estimate of $156.98 million. Applied Optoelectronics had a negative net margin of 8.55% and a negative return on equity of 4.64%. The company’s revenue was up 51.3% 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 Q2 2026 guidance at -0.030-0.030 EPS. Sell-side analysts predict that Applied Optoelectronics, Inc. will post 0.6 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of Applied Optoelectronics stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $166.53, for a total transaction of $9,825,270.00. Following the completion of the sale, the chief executive officer owned 1,302,436 shares in the company, valued at approximately $216,894,667.08. This trade represents a 4.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Shu-Hua (Joshua) Yeh sold 6,000 shares of the company’s stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $171.89, for a total value of $1,031,340.00. Following the completion of the transaction, the insider owned 394,207 shares of the company’s stock, valued at $67,760,241.23. The trade was a 1.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 500,215 shares of company stock worth $86,716,414. Company insiders own 3.80% of the company’s stock.

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.