Applied Optoelectronics, Inc.

(NASDAQ Global Market)
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Slightly Bearish -15

Strs Ohio Buys Shares of 5,600 Applied Optoelectronics, Inc. $AAOI

AI-generated analysis

πŸ“ˆ Strs Ohio initiated a new position in AAOI by buying 5,600 shares valued at $474,000 in the first quarter.

πŸ“ˆ Global Trust Asset Management boosted its stake by 114.2%, now holding 59,562 shares worth $5.0 million.

πŸ“ˆ Assenagon Asset Management acquired a new stake valued at approximately $4.1 million during the quarter.

πŸ“‰ Weiss Ratings reiterated a 'sell (d-)' rating on Applied Optoelectronics shares.

πŸ“‰ Wall Street Zen downgraded AAOI from a 'hold' to a 'sell' rating in April.

πŸ“ˆ Raymond James Financial restated an 'outperform' rating on the semiconductor company.

πŸ“ˆ Rosenblatt Securities maintained a 'buy' rating and set a $220.00 target price.

πŸ’° CEO Chih-Hsiang Lin sold 59,000 shares for $9.8 million to cover tax withholding obligations.

πŸ’° Insider Shu-Hua Yeh sold 39,154 shares for $6.8 million related to equity vesting taxes.

πŸ“‰ Total insider selling in the last 90 days reached 496,215 shares worth over $86 million.

πŸ’Έ Q1 earnings of ($0.07) per share missed analyst consensus estimates of ($0.05).

πŸ“ˆ Revenue grew 51.3% year-over-year to reach $151.14 million in the first quarter.

πŸ“‰ The company reported a negative net margin of 8.55% and negative return on equity of 4.64%.

πŸ“‰ Q2 2026 guidance projects earnings per share between -$0.030 and -$0.030.

πŸ“Š Institutional investors and hedge funds collectively own 61.70% of the company's stock.

Bullish Signals
  • Strs Ohio, Global Trust Asset Management, and Assenagon Asset Management all established or significantly increased their positions in AAOI during the first quarter.
  • Global Trust Asset Management increased its holdings by 114.2%, adding 31,758 shares to its portfolio.
  • Pictet Asset Management Holding SA increased its position by 30.0% in the first quarter.
  • Raymond James Financial restated an 'outperform' rating on AAOI shares.
  • Rosenblatt Securities reiterated a 'buy' rating and issued a $220.00 target price.
  • Applied Optoelectronics reported revenue of $151.14 million, representing a 51.3% increase compared to the same quarter last year.
  • The company maintains a strong balance sheet with a debt-to-equity ratio of 0.18 and a current ratio of 3.83.
Risk Factors
  • Weiss Ratings reiterated a 'sell (d-)' rating on Applied Optoelectronics shares.
  • Wall Street Zen downgraded the stock from a 'hold' to a 'sell' rating in April.
  • CEO Chih-Hsiang Lin sold 59,000 shares for $9.8 million, reducing his direct ownership by 4.33%.
  • Insider Shu-Hua Yeh sold 39,154 shares for $6.8 million, decreasing his ownership by 7.81%.
  • Total insider selling in the last 90 days amounted to 496,215 shares worth over $86 million.
  • The company reported earnings per share of ($0.07), missing the consensus estimate of ($0.05).
  • Revenue of $151.14 million missed analyst estimates of $156.98 million by $5.84 million.
  • The company posted a negative net margin of 8.55% and a negative return on equity of 4.64%.
  • Q2 2026 guidance projects continued losses with EPS between -$0.030 and -$0.030.
Full Analysis
Strs Ohio established a new position in Applied Optoelectronics, Inc. (AAOI) by purchasing 5,600 shares valued at approximately $474,000 during the first quarter, according to recent SEC 13F filings. Several other institutional investors also adjusted their holdings, with Global Trust Asset Management increasing its stake by 114.2% and Assenagon Asset Management acquiring a new position worth roughly $4.1 million. Collectively, institutional investors and hedge funds now own 61.70% of the company's outstanding stock. Analyst sentiment remains mixed regarding AAOI shares. Weiss Ratings maintained a 'sell' rating, while Wall Street Zen downgraded the stock to a 'sell'. Conversely, Raymond James Financial restated an 'outperform' rating and Rosenblatt Securities reiterated a 'buy' with a $220 target price. The consensus average rating is currently 'Hold' with an average target price of $113.80. Recent insider activity shows significant selling pressure as CEO Chih-Hsiang Lin sold 59,000 shares for approximately $9.8 million and executive Shu-Hua Yeh sold 39,154 shares for about $6.8 million to cover tax obligations on vested equity. In financial performance, the company reported Q1 earnings of ($0.07) per share, missing estimates, with revenue of $151.14 million rising 51.3% year-over-year despite a negative net margin of 8.55%.