Emerald Advisers LLC Cuts Holdings in Applied Optoelectronics, Inc. $AAOI

Emerald Advisers LLC lowered its position in Applied Optoelectronics, Inc. (NASDAQ:AAOI) by 35.3% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 433,882 shares of the semiconductor company’s stock after selling 236,695 shares during the period. Applied Optoelectronics comprises approximately 1.2% of Emerald Advisers LLC’s investment portfolio, making the stock its 22nd biggest position. Emerald Advisers LLC owned approximately 0.54% of Applied Optoelectronics worth $36,702,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the company. Allworth Financial LP increased its stake in shares of 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 in the last quarter. Comerica Bank purchased a new position in Applied Optoelectronics during the third quarter worth approximately $28,000. Northwestern Mutual Wealth Management Co. boosted its position in Applied Optoelectronics by 166.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,200 shares of the semiconductor company’s stock worth $42,000 after purchasing an additional 750 shares in the last quarter. Kohmann Bosshard Financial Services LLC acquired a new stake in Applied Optoelectronics in the fourth quarter valued at approximately $55,000. Finally, Headlands Technologies LLC acquired a new stake in Applied Optoelectronics in the second quarter valued at approximately $57,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

Applied Optoelectronics Trading Down 6.7%

Shares of Applied Optoelectronics stock opened at $111.88 on Tuesday. The firm has a market capitalization of $8.98 billion, a PE ratio of -169.52 and a beta of 3.69. Applied Optoelectronics, Inc. has a twelve month low of $18.50 and a twelve month high of $233.67. The firm’s 50-day moving average price is $163.96 and its 200 day moving average price is $109.09. The company has a current ratio of 3.83, a quick ratio of 3.03 and a debt-to-equity ratio of 0.18.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings data on Thursday, May 7th. The semiconductor company reported ($0.07) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.02). Applied Optoelectronics had a negative return on equity of 4.64% and a negative net margin of 8.55%.The firm had revenue of $151.14 million during the quarter, compared to analyst estimates of $156.98 million. During the same quarter in the previous year, the firm posted ($0.02) earnings per share. The company’s quarterly revenue was up 51.3% on a year-over-year basis. 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 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on AAOI shares. Wall Street Zen cut Applied Optoelectronics from a “hold” rating to a “sell” rating in a research report on Monday, April 13th. Raymond James Financial reiterated an “outperform” rating on shares of Applied Optoelectronics in a research report on Wednesday, June 10th. Rosenblatt Securities reissued a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Monday, June 22nd. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Applied Optoelectronics in a report on Tuesday, July 7th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $113.80.

Insider Transactions at Applied Optoelectronics

In related news, insider Hung-Lun (Fred) Chang sold 40,329 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $170.60, for a total transaction of $6,880,127.40. Following the completion of the sale, the insider directly owned 286,124 shares in the company, valued at approximately $48,812,754.40. The trade was a 12.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David C. Kuo sold 29,227 shares of the stock in a transaction on Friday, June 12th. The shares were sold at an average price of $166.53, for a total value of $4,867,172.31. Following the completion of the transaction, the insider directly owned 149,078 shares of the company’s stock, valued at approximately $24,825,959.34. This represents a 16.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 496,215 shares of company stock valued at $86,170,414. Insiders own 3.80% of the company’s stock.

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.