Hung-Lun (Fred) Chang Sells 4,000 Shares of Applied Optoelectronics (NASDAQ:AAOI) Stock

Applied Optoelectronics, Inc. (NASDAQ:AAOI) insider Hung-Lun (Fred) Chang sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $200.07, for a total value of $800,280.00. Following the completion of the transaction, the insider owned 387,750 shares in the company, valued at $77,577,142.50. This represents a 1.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Hung-Lun (Fred) Chang also recently made the following trade(s):

• On Tuesday, May 19th, Hung-Lun (Fred) Chang sold 33,630 shares of Applied Optoelectronics stock. The shares were sold at an average price of $173.26, for a total value of $5,826,733.80.
• On Monday, March 16th, Hung-Lun (Fred) Chang sold 36,400 shares of Applied Optoelectronics stock. The shares were sold at an average price of $100.25, for a total value of $3,649,100.00.

Applied Optoelectronics Stock Down 17.2%

AAOI stock opened at $162.88 on Wednesday. Applied Optoelectronics, Inc. has a twelve month low of $15.29 and a twelve 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. The stock’s 50 day moving average is $158.60 and its 200-day moving average is $89.28. The firm has a market capitalization of $13.07 billion, a PE ratio of -246.79 and a beta of 3.66.

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

Key Stories Impacting Applied Optoelectronics

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

• Positive Sentiment: One bullish thesis argues the pullback may be a buying opportunity, pointing to Nvidia’s reaffirmation of pluggable optics through 2027, more than $324 million in hyperscaler orders, and management’s claim that demand exceeds manufacturing capacity through mid-2027. Why I’m Buying The AAOI Dip
• Neutral Sentiment: Short-interest data showed no meaningful change in reported short interest, but the figures also appear incomplete/zero, so this does not provide a clear trading signal.
• Negative Sentiment: Applied Optoelectronics was mentioned as a leader among networking stocks sliding after a report on delays in the CPO rollout, which suggests possible near-term concern for the group. Applied Optoelectronics leads networking stocks down following report on CPO rollout delay
• Negative Sentiment: Insiders continued trimming holdings, including sales by Hung-Lun (Fred) Chang and Shu-Hua (Joshua) Yeh, which can weigh on sentiment even if the transactions are relatively small compared with their remaining stakes.
• Negative Sentiment: The stock had already been volatile after a sharp prior-day drop, reinforcing the idea that traders are reacting quickly to news and positioning in the name.

Analyst Upgrades and Downgrades

AAOI has been the topic of a number of recent research reports. Northland Securities restated a “market perform” rating and issued a $55.00 target price on shares of Applied Optoelectronics in a report on Friday, February 27th. Needham & Company LLC raised their target price on Applied Optoelectronics from $43.00 to $80.00 and gave the company a “buy” rating in a report on Friday, February 27th. Wall Street Zen lowered Applied Optoelectronics from a “hold” rating to a “sell” rating in a report on Monday, April 13th. Rosenblatt Securities restated a “buy” rating and issued a $50.00 target price on shares of Applied Optoelectronics in a report on Thursday, February 19th. Finally, Raymond James Financial reaffirmed an “outperform” rating and set a $160.00 price target on shares of Applied Optoelectronics in a research report on Friday, May 8th. Three research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $79.80.

Institutional Trading of Applied Optoelectronics

Institutional investors and hedge funds have recently modified their holdings of the business. Allworth Financial LP increased its position in shares of Applied Optoelectronics by 1,923.7% during the fourth quarter. Allworth Financial LP now owns 769 shares of the semiconductor company’s stock valued at $27,000 after acquiring an additional 731 shares during the last quarter. NFSG Corp purchased a new stake in shares of Applied Optoelectronics during the first quarter valued at approximately $85,000. Comerica Bank purchased a new stake in shares of Applied Optoelectronics during the third quarter valued at approximately $28,000. Northwestern Mutual Wealth Management Co. increased its position in shares of 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 valued at $42,000 after acquiring an additional 750 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC purchased a new stake in shares of Applied Optoelectronics during the fourth quarter valued at approximately $55,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

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.