Ariose Capital Management Ltd Takes Position in Applied Optoelectronics, Inc. $AAOI

Ariose Capital Management Ltd acquired a new position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 104,000 shares of the semiconductor company’s stock, valued at approximately $8,797,000. Applied Optoelectronics comprises 5.9% of Ariose Capital Management Ltd’s investment portfolio, making the stock its 6th largest holding.

A number of other institutional investors and hedge funds also recently modified their holdings of AAOI. Invesco Ltd. lifted its stake in Applied Optoelectronics by 5,208.9% in the 4th quarter. Invesco Ltd. now owns 3,512,309 shares of the semiconductor company’s stock valued at $122,439,000 after purchasing an additional 3,446,150 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Applied Optoelectronics by 5,321.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,229,757 shares of the semiconductor company’s stock worth $77,730,000 after purchasing an additional 2,188,630 shares during the period. Morgan Stanley increased its position in Applied Optoelectronics by 157.1% during the fourth quarter. Morgan Stanley now owns 1,699,855 shares of the semiconductor company’s stock worth $59,257,000 after buying an additional 1,038,775 shares during the last quarter. Hawk Ridge Capital Management LP increased its position in Applied Optoelectronics by 106.2% during the fourth quarter. Hawk Ridge Capital Management LP now owns 1,700,900 shares of the semiconductor company’s stock worth $59,293,000 after buying an additional 875,903 shares during the last quarter. Finally, Artemis Investment Management LLP bought a new stake in Applied Optoelectronics in the fourth quarter valued at approximately $26,923,000. 61.70% of the stock is owned by institutional investors.

Analysts Set New Price Targets

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

Insider Buying and Selling

In other news, CEO Chih-Hsiang (Thompson) Lin sold 59,000 shares of the stock in a transaction that occurred on 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 transaction, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Hung-Lun (Fred) Chang sold 40,329 shares of Applied Optoelectronics stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total value of $6,880,127.40. Following the sale, the insider directly owned 286,124 shares of the company’s stock, valued at approximately $48,812,754.40. The trade was a 12.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 500,215 shares of company stock valued at $86,716,414 in the last ninety days. 3.80% of the stock is currently owned by company insiders.

Applied Optoelectronics Stock Performance

Shares of AAOI stock opened at $120.95 on Friday. Applied Optoelectronics, Inc. has a 52 week low of $18.50 and a 52 week high of $233.67. The company has a market capitalization of $9.71 billion, a price-to-earnings ratio of -183.26 and a beta of 3.69. The company has a 50-day simple moving average of $167.83 and a 200 day simple moving average of $104.98. The company has a debt-to-equity ratio of 0.18, a quick ratio of 3.03 and a current ratio of 3.83.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings results on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.02). The company had revenue of $151.14 million during 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 firm’s revenue was up 51.3% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.02) earnings per share. Applied Optoelectronics has set its Q2 2026 guidance at -0.030-0.030 EPS. On average, sell-side analysts predict that Applied Optoelectronics, Inc. will post 0.6 earnings per share for the current year.

Applied Optoelectronics Company 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.