Applied Optoelectronics, Inc. $AAOI Shares Newly Bought by Fortitude Advisory Group L.L.C.

Fortitude Advisory Group L.L.C. purchased a new position in shares of Applied Optoelectronics, Inc. (NASDAQ:AAOI) during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 6,372 shares of the semiconductor company’s stock, valued at approximately $632,000.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Geneos Wealth Management Inc. increased its stake in Applied Optoelectronics by 1.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 18,072 shares of the semiconductor company’s stock valued at $1,529,000 after buying an additional 243 shares during the last quarter. Allworth Financial LP boosted its stake in shares of Applied Optoelectronics by 68.8% in the 2nd quarter. Allworth Financial LP now owns 596 shares of the semiconductor company’s stock worth $88,000 after buying an additional 243 shares during the last quarter. Polaris Financial Partners purchased a new position in shares of Applied Optoelectronics in the 3rd quarter worth approximately $26,000. EFG International AG purchased a new position in shares of Applied Optoelectronics in the 2nd quarter worth approximately $44,000. Finally, Persistent Asset Partners Ltd bought a new position in shares of Applied Optoelectronics in the second quarter valued at approximately $47,000. Hedge funds and other institutional investors own 61.70% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages recently commented on AAOI. Rosenblatt Securities reaffirmed a “buy” rating and set a $220.00 price target on shares of Applied Optoelectronics in a research report on Friday, August 7th. Weiss Ratings cut Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. B. Riley Financial reduced their price objective on Applied Optoelectronics from $109.00 to $92.00 and set a “neutral” rating for the company in a research note on Thursday. Needham & Company LLC reduced their price objective on Applied Optoelectronics from $220.00 to $190.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Finally, Wall Street Zen upgraded Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Applied Optoelectronics currently has an average rating of “Hold” and a consensus price target of $147.00.

Trending Headlines about Applied Optoelectronics

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

• Positive Sentiment: Applied Optoelectronics will report third-quarter 2026 results on November 5 and hold an investor conference call covering fourth-quarter guidance. The event could provide updates on AI-related demand, customer orders and profitability. Third-Quarter 2026 Results Conference Call
• Positive Sentiment: The company’s latest reported quarter showed strong operating momentum: revenue increased 86.3% year over year to $191.9 million, while adjusted EPS of $0.06 exceeded the $0.02 consensus estimate. Management’s third-quarter EPS guidance is $0.11 to $0.26.
• Neutral Sentiment: AAOI’s high beta and large prior gains have made it especially sensitive to profit-taking and changes in investor positioning. A technical analysis article suggested the pullback may create a “buy the dip” opportunity, but this does not address the broader fundamental risks. Buy the Dip Analysis
• Negative Sentiment: Investors are rotating toward defensive sectors amid hot inflation concerns, weighing on AI-linked optical suppliers including Applied Optoelectronics, Coherent and Lumentum. Concerns that AI infrastructure spending may not generate sufficient returns are driving the sector-wide selloff. Optical Stocks Extend Slide
• Negative Sentiment: B. Riley lowered its AAOI price target from $109 to $92 and maintained a neutral rating, signaling reduced near-term valuation support. B. Riley Price Target Update
• Negative Sentiment: CFO Stefan Murry sold 4,000 shares for approximately $411,480 under a pre-arranged Rule 10b5-1 plan. The sale was modest relative to his remaining ownership, but may add to negative sentiment. SEC Insider Ownership Filing

Applied Optoelectronics Stock Performance

Shares of AAOI stock opened at $83.73 on Friday. The firm has a market cap of $7.08 billion, a price-to-earnings ratio of -107.35 and a beta of 3.85. The company has a debt-to-equity ratio of 0.12, a quick ratio of 2.13 and a current ratio of 2.78. Applied Optoelectronics, Inc. has a 52 week low of $18.50 and a 52 week high of $233.67. The firm’s 50-day simple moving average is $111.59 and its two-hundred day simple moving average is $133.30.

Applied Optoelectronics (NASDAQ:AAOI) last released its earnings results on Thursday, August 6th. The semiconductor company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The firm had revenue of $191.92 million during the quarter, compared to the consensus estimate of $190.48 million. During the same period in the prior year, the firm earned ($0.16) EPS. The company’s revenue was up 86.3% compared to the same quarter last year. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. As a group, equities analysts forecast that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Shu-Hua Yeh sold 6,000 shares of Applied Optoelectronics stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $120.03, for a total value of $720,180.00. Following the sale, the insider 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 position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Hung-Lun Chang sold 32,172 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The shares were 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 owned 249,276 shares in the company, valued at approximately $27,472,707.96. The trade was a 11.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 58,172 shares of company stock valued at $6,735,709. 3.80% of the stock is owned by company insiders.

Applied Optoelectronics Profile

Applied Optoelectronics, Inc (NASDAQ: AAOI) develops and manufactures fiber-optic networking products used to transmit data across broadband, data center, telecommunications and wireless networks. Its portfolio includes optical transceivers, modules, lasers, components and networking equipment designed for high-speed communications infrastructure.

The company serves communications service providers, cable television and broadband operators, internet content providers, data center operators and telecommunications customers.