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Applied Optoelectronics Slides as Investors Digest New Financing, Supply Commitments, and Post-Earnings Reset

Investivoq PriceTracker

Applied Optoelectronics (AAOI) is down 8.4% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely driver appears to be continued post-earnings pressure after last week’s quarterly report, even though the company posted strong growth and projected a sharp step-up in fourth-quarter revenue. This could be because investors are focusing less on near-term demand and more on the heavier capital needs behind the expansion, including new borrowing, added supply commitments, and lower analyst price targets after the report.

Details:

  • Third-quarter revenue rose to $269.9 million, up from $191.9 million in the prior quarter, while the company returned to GAAP profitability and guided for fourth-quarter revenue of $385 million to $420 million.
  • The company disclosed a new credit facility with $30 million of revolving commitments and $170 million of initial term loan commitments, adding fresh leverage as it expands capacity.
  • The latest quarterly filing also described a new raw-material supply agreement that allows for purchases of up to about $194.4 million annually and requires aggregate prepayments of up to $40 million, which may raise investor concern about working-capital demands.
  • After the earnings release, at least two firms lowered their price targets, including one cut to $45 from $92 and another to $165 from $178, reinforcing a more cautious tone around valuation.

    • Sources:

    Applied Optoelectronics Investor Relations, SEC, StockAnalysis

    Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

    $AAOI Insider Trading Activity

    AAOI Insider Trades

    $AAOI insiders have traded $AAOI stock on the open market 27 times in the past 6 months. Of those trades, 0 have been purchases and 27 have been sales.

    Here’s a breakdown of recent trading of $AAOI stock by insiders over the last 6 months:

    • HUNG-LUN (FRED) CHANG (*** See Remarks) has made 0 purchases and 5 sales selling 144,131 shares for an estimated $22,714,837.
    • CHIH-HSIANG (THOMPSON) LIN (President and CEO) has made 0 purchases and 2 sales selling 117,000 shares for an estimated $19,874,350.
    • SHU-HUA (JOSHUA) YEH (*** See Remarks) has made 0 purchases and 9 sales selling 101,980 shares for an estimated $17,023,489.
    • STEFAN J. MURRY (Chief Financial Officer) has made 0 purchases and 7 sales selling 86,000 shares for an estimated $13,799,190.
    • CYNTHIA DELANEY sold 56,575 shares for an estimated $10,705,602
    • DAVID C KUO (*** See Remarks) has made 0 purchases and 2 sales selling 48,454 shares for an estimated $8,198,442.
    • MIN-CHU (MIKE) CHEN sold 8,247 shares for an estimated $1,657,647

    To track insider transactions, check out Investivoq's insider trading dashboard. You can access data on insider stock transactions through the Investivoq API insider transaction endpoint.

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    $AAOI Hedge Fund Activity

    We have seen 299 institutional investors add shares of $AAOI stock to their portfolio, and 242 decrease their positions in their most recent quarter.

    Here are some of the largest recent moves:

    • JANE STREET GROUP, LLC removed 1,715,761 shares (-75.3%) from their portfolio in Q2 2026, for an estimated $254,207,149
    • PRICE T ROWE ASSOCIATES INC /MD/ removed 1,621,448 shares (-93.6%) from their portfolio in Q2 2026, for an estimated $240,233,735
    • INVESCO LTD. added 1,399,857 shares (+69.5%) to their portfolio in Q2 2026, for an estimated $207,402,813
    • D. E. SHAW & CO., INC. removed 1,325,800 shares (-97.0%) from their portfolio in Q2 2026, for an estimated $196,430,528
    • CLEAR STREET GROUP INC. added 1,231,143 shares (+inf%) to their portfolio in Q2 2026, for an estimated $182,406,146
    • UBS GROUP AG added 1,140,720 shares (+117.5%) to their portfolio in Q2 2026, for an estimated $169,009,075
    • JPMORGAN CHASE & CO added 1,068,246 shares (+inf%) to their portfolio in Q2 2026, for an estimated $158,271,327

    To track hedge funds' stock portfolios, check out Investivoq's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Investivoq API 13F endpoint.

    This article is not financial advice. See Investivoq's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.