Applied Optoelectronics (NASDAQ:AAOI) CFO Stefan Murry Sells 4,000 Shares of Stock

Applied Optoelectronics, Inc. (NASDAQ:AAOI) CFO Stefan Murry sold 4,000 shares of the firm’s stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $102.87, for a total transaction of $411,480.00. Following the sale, the chief financial officer owned 363,168 shares of the company’s stock, valued at approximately $37,359,092.16. This represents a 1.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Applied Optoelectronics Stock Down 11.8%

Shares of Applied Optoelectronics stock opened at $86.22 on Thursday. The company has a 50-day simple moving average of $112.40 and a two-hundred day simple moving average of $133.41. The stock has a market capitalization of $7.29 billion, a PE ratio of -110.54 and a beta of 3.85. Applied Optoelectronics, Inc. has a 52-week low of $18.50 and a 52-week high of $233.67. 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 (NASDAQ:AAOI) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 EPS for the quarter, beating analysts’ consensus estimates of $0.02 by $0.04. The firm had revenue of $191.92 million for the quarter, compared to analysts’ expectations of $190.48 million. Applied Optoelectronics had a negative net margin of 9.57% and a negative return on equity of 1.98%. The business’s revenue for the quarter was up 86.3% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.16) earnings per share. Applied Optoelectronics has set its Q3 2026 guidance at 0.110-0.260 EPS. On average, analysts anticipate that Applied Optoelectronics, Inc. will post 0.55 EPS for the current fiscal year.

Applied Optoelectronics News Roundup

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

• Positive Sentiment: Recent business momentum remains a potential support: Applied Optoelectronics reported record second-quarter 2026 revenue of $191.9 million, returned to non-GAAP profitability, and exceeded analysts’ EPS and revenue expectations. A technical indicator also suggested the pullback could create a “buy the dip” opportunity. Struggling Photonics Stock Flashing Buy the Dip Signal
• Neutral Sentiment: AAOI has been one of the strongest optical-connectivity stocks in 2026, but its substantial prior gains and recent pullback have prompted investors to debate whether to take profits or remain exposed to the AI infrastructure theme. Applied Optoelectronics Is Up 175% in 2026 and Lumentum Is Up 164%
• Negative Sentiment: Investors are reassessing whether aggressive AI infrastructure spending will generate attractive returns, pressuring AAOI along with Coherent and Lumentum. This broader AI-optics selloff was cited as the primary reason for the stock’s decline. Applied Optoelectronics Dives as AI Funding Fears Hit Optical Stocks
• Negative Sentiment: CFO Stefan Murry sold 4,000 shares for approximately $411,480 under a pre-arranged Rule 10b5-1 plan. Although the sale was modest relative to his remaining holdings, it adds to sentiment pressure because AAOI insiders have reported sales and no purchases in recent months. SEC Insider Ownership Filing
• Negative Sentiment: The company’s previously disclosed at-the-market program, which permits up to $600 million in share sales, remains a potential dilution and share-supply overhang.

Institutional Trading of Applied Optoelectronics

A number of hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new stake in Applied Optoelectronics during the 2nd quarter valued at approximately $955,672,000. Renaissance Technologies LLC purchased a new position in shares of Applied Optoelectronics in the first quarter worth $47,817,000. William Blair Investment Management LLC purchased a new position in shares of Applied Optoelectronics in the second quarter worth $74,703,000. Bank of America Corp DE purchased a new position in shares of Applied Optoelectronics in the second quarter worth $33,712,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Applied Optoelectronics in the second quarter worth $32,567,000. 61.70% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Raymond James Financial reiterated an “outperform” rating and set a $178.00 target price on shares of Applied Optoelectronics in a research note on Tuesday, August 11th. B. Riley Financial reissued a “neutral” rating on shares of Applied Optoelectronics in a report on Friday, August 7th. Rosenblatt Securities restated a “buy” rating and issued a $220.00 price target on shares of Applied Optoelectronics in a research note on Friday, August 7th. Weiss Ratings downgraded Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, August 17th. Finally, Wall Street Zen raised Applied Optoelectronics from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Applied Optoelectronics currently has a consensus rating of “Hold” and an average price target of $139.40.

About Applied Optoelectronics

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.