Applied Optoelectronics, Inc. $AAOI Stock: Fund Resources Investment Holding Group Co Ltd Increases Stake

Fund Resources Investment Holding Group Co Ltd grew its stake in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) by 283.0% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 191,441 shares of the semiconductor company’s stock after acquiring an additional 141,453 shares during the period. Applied Optoelectronics comprises 5.3% of Fund Resources Investment Holding Group Co Ltd’s investment portfolio, making the stock its 3rd biggest position. Fund Resources Investment Holding Group Co Ltd owned approximately 0.23% of Applied Optoelectronics worth $19,002,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently modified their holdings of the business. California State Teachers Retirement System grew its stake in Applied Optoelectronics by 23.2% during the first quarter. California State Teachers Retirement System now owns 70,464 shares of the semiconductor company’s stock valued at $5,961,000 after acquiring an additional 13,265 shares in the last quarter. BlackRock Inc. bought a new stake in shares of Applied Optoelectronics in the second quarter worth about $955,672,000. Handelsbanken Fonder AB purchased a new position in shares of Applied Optoelectronics during the second quarter valued at approximately $7,719,000. Capstone Capital Management Ltd bought a new position in Applied Optoelectronics in the 3rd quarter worth $2,101,000. Finally, Bank of America Corp DE purchased a new position in shares of Applied Optoelectronics during the 2nd quarter worth approximately $33,712,000. 61.70% of the stock is currently owned by hedge funds and other institutional investors.

Applied Optoelectronics News Summary

Here are the key news stories impacting Applied Optoelectronics this week:

• Positive Sentiment: Third-quarter results beat estimates: adjusted earnings were $0.17 per share versus $0.14 expected, while revenue of $269.9 million rose 127.5% year over year. The company also reported a sixth consecutive quarter of record revenue and a return to GAAP profitability. Third-quarter results
• Positive Sentiment: Datacenter and CATV sales benefited from demand for 800G transceivers and record broadband equipment shipments. Management also cited accelerating demand for 1.6T products and a potential $1 billion–$1.5 billion hyperscaler deal, supporting the growth outlook. Q3 sales and demand
• Positive Sentiment: A rebound in AI optical stocks is providing a favorable sector backdrop, with investors revisiting recent earnings across the group. AI optical stocks rally
• Negative Sentiment: Fourth-quarter revenue guidance of $385 million–$420 million falls short of the $427.3 million consensus estimate, despite an EPS range that brackets expectations. Component shortages and delays ramping manufacturing capacity—including U.S. expansion issues—could limit the company’s ability to meet demand. Earnings call and capacity delays
• Negative Sentiment: Analysts lowered price targets: B. Riley cut its target to $45 and assigned a neutral rating, while Rosenblatt reduced its target to $115 but maintained a buy rating. The mixed revisions reflect uncertainty following the stock’s volatility. B. Riley analyst rating

Insider Transactions at Applied Optoelectronics

In other news, insider Shu-Hua Yeh sold 6,000 shares of the business’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $120.03, for a total transaction of $720,180.00. Following the completion of the sale, the insider directly owned 371,498 shares of the company’s stock, valued at approximately $44,590,904.94. The trade was a 1.59% 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 this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $110.21, for a total value of $3,545,676.12. Following the completion of the transaction, the insider directly owned 249,276 shares in the company, valued at approximately $27,472,707.96. This trade represents a 11.43% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 52,172 shares of company stock worth $5,985,036. 3.80% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on AAOI shares. Weiss Ratings raised Applied Optoelectronics from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, October 21st. Wall Street Zen upgraded shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Rosenblatt Securities reduced their target price on Applied Optoelectronics from $220.00 to $115.00 and set a “buy” rating for the company in a report on Friday. B. Riley Financial decreased their price target on Applied Optoelectronics from $92.00 to $45.00 and set a “neutral” rating for the company in a research note on Friday. Finally, Needham & Company LLC lowered their price target on Applied Optoelectronics from $170.00 to $100.00 and set a “buy” rating on the stock in a report on Friday. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $111.60.

Applied Optoelectronics Price Performance

NASDAQ AAOI traded up $3.24 on Friday, reaching $50.13. The company had a trading volume of 21,665,772 shares, compared to its average volume of 12,628,997. The company has a quick ratio of 2.13, a current ratio of 2.78 and a debt-to-equity ratio of 0.12. The stock has a market capitalization of $4.24 billion, a PE ratio of -116.58 and a beta of 4.04. Applied Optoelectronics, Inc. has a 12 month low of $18.50 and a 12 month high of $233.67. The firm’s 50 day moving average price is $92.96 and its 200 day moving average price is $113.25.

Applied Optoelectronics (NASDAQ:AAOI) last released its quarterly earnings data on Thursday, November 5th. The semiconductor company reported $0.17 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.03. The business had revenue of $269.88 million for the quarter, compared to the consensus estimate of $268.11 million. Applied Optoelectronics had a negative return on equity of 1.98% and a negative net margin of 9.57%. The company’s revenue was up 127.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.09) EPS. As a group, equities analysts predict that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Applied Optoelectronics Company Profile

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products and solutions. Its offerings include optical transceivers, transmitters, receivers, lasers, and related components used to transmit data across fiber-optic networks.

The company serves several communications markets, including data centers, broadband access networks, cable television, and telecommunications. Its products are designed for applications such as high-speed data transmission, fiber-to-the-home and other broadband deployments, network connectivity, and communications infrastructure.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics supports customers in multiple regions, including North America, Asia, and other international markets.