Gallo Partners LP Purchases New Shares in Applied Optoelectronics, Inc. $AAOI

Gallo Partners LP acquired a new position in Applied Optoelectronics, Inc. (NASDAQ:AAOI) in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 4,826 shares of the semiconductor company’s stock, valued at approximately $715,000. Applied Optoelectronics makes up approximately 1.6% of Gallo Partners LP’s holdings, making the stock its 26th largest position.

Other large investors have also recently made changes to their positions in the company. Allworth Financial LP lifted its holdings in shares of Applied Optoelectronics by 1,923.7% in the 4th 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. Comerica Bank purchased a new position in Applied Optoelectronics in the third quarter worth about $28,000. Northwestern Mutual Wealth Management Co. increased its stake in 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 worth $42,000 after acquiring an additional 750 shares during the last quarter. Persistent Asset Partners Ltd bought a new stake in Applied Optoelectronics during the second quarter worth approximately $47,000. Finally, Kohmann Bosshard Financial Services LLC bought a new stake in Applied Optoelectronics during the fourth quarter worth approximately $55,000. 61.70% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other news, Director Cynthia Delaney sold 56,575 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $189.23, for a total transaction of $10,705,687.25. Following the transaction, the director directly owned 59,647 shares of the company’s stock, valued at approximately $11,287,001.81. This trade represents a 48.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider David C. Kuo sold 29,227 shares of Applied Optoelectronics stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $166.53, for a total transaction of $4,867,172.31. Following the sale, the insider directly owned 149,078 shares of the company’s stock, valued at $24,825,959.34. This represents a 16.39% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 329,204 shares of company stock worth $56,587,341. 3.80% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of equities research analysts have issued reports on AAOI shares. Rosenblatt Securities restated a “buy” rating and set a $220.00 price objective on shares of Applied Optoelectronics in a research report on Friday, August 7th. Weiss Ratings downgraded Applied Optoelectronics from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 17th. Raymond James Financial restated an “outperform” rating and set a $178.00 price target on shares of Applied Optoelectronics in a report on Tuesday, August 11th. B. Riley Financial restated a “neutral” rating on shares of Applied Optoelectronics in a research report on Friday, August 7th. Finally, Wall Street Zen raised shares of Applied Optoelectronics from a “sell” rating to a “hold” rating in a research note 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 MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $139.40.

Applied Optoelectronics Price Performance

Shares of AAOI opened at $124.82 on Monday. The firm has a fifty day moving average price of $127.73 and a 200-day moving average price of $125.42. The company has a current ratio of 2.78, a quick ratio of 2.13 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $10.56 billion, a P/E ratio of -160.03 and a beta of 3.76. Applied Optoelectronics, Inc. has a 12-month low of $18.50 and a 12-month high of $233.67.

Applied Optoelectronics (NASDAQ:AAOI) last posted its quarterly earnings results on Thursday, August 6th. The semiconductor company reported $0.06 EPS for the quarter, topping the consensus estimate 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 company had revenue of $191.92 million for the quarter, compared to the consensus estimate of $190.48 million. During the same quarter last year, the firm posted ($0.16) EPS. The firm’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. Equities research analysts expect that Applied Optoelectronics, Inc. will post 0.55 earnings per share for the current year.

About Applied Optoelectronics

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.