Applied Optoelectronics Executive Sells Shares Amid Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
0mins
Source: Fool
- Executive Sell-off: David C Kuo, Senior VP and Chief Legal Officer of Applied Optoelectronics, sold 12,000 shares on January 28, 2026, for approximately $540,660, reducing his direct holdings to 114,636 shares, which represents 0.17% of total outstanding shares.
- Transaction Pattern: This sale aligns with Kuo's median sale size of 12,250 shares since November 2024, indicating a consistent pattern of disposals; despite a 20% increase in stock price in January, the overall performance remains concerning.
- Financial Overview: Applied Optoelectronics has a market capitalization of $2.98 billion and a one-year price change of 64.38%, yet it has reported negative net margins since 2019, struggling with high operating costs, particularly in U.S. infrastructure implementation.
- Investor Considerations: While Kuo's sale was part of a pre-scheduled trading plan, investors should remain vigilant regarding the company's ongoing negative margins and operational challenges, which could adversely affect future stock performance.
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Analyst Views on AAOI
Wall Street analysts forecast AAOI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAOI is 38.25 USD with a low forecast of 15.00 USD and a high forecast of 50.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 39.570
Low
15.00
Averages
38.25
High
50.00
Current: 39.570
Low
15.00
Averages
38.25
High
50.00
About AAOI
Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies, and modules to complete turn-key equipment. The Company also designs, manufactures, and integrates its own analog and digital lasers using the proprietary Molecular Beam Epitaxy (MBE) and Metal Organic Chemical Vapor Deposition (MOCVD) alternative processes for the fabrication of lasers. The Company manufactures lasers and laser components and performs research and development activities for laser component and optical module products. The Company offers its fiber-optic networking products, primarily for four networking end-markets, such as cable television, (CATV), Internet data center, telecommunications, (telecom), and fiber-to-the-home (FTTH). The Company has manufacturing facilities in Taipei, Taiwan and Ningbo, China.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Applied Optoelectronics Executive Sells Shares
- Insider Selling Details: On January 28, 2026, Applied Optoelectronics' Senior Vice President and Chief Legal Officer David C Kuo sold 12,000 shares valued at approximately $540,660, representing 9.48% of his holdings and reducing his ownership stake to 0.17% in the company.
- Trading Plan Context: Kuo's share sale was executed under a pre-scheduled Rule 10b5-1 trading plan, indicating that this transaction was not made at his discretion on the sale date, but rather planned in advance, reflecting a strategic approach to market fluctuations.
- Market Performance Review: Although AAOI's stock price increased by about 20% in January 2026, it experienced a disappointing 4% decline throughout 2025, highlighting the company's struggles with high operating costs and persistent negative net margins, particularly in the challenging U.S. fiber optic market.
- Investor Considerations: The company has reported negative net losses since 2019, prompting investors to closely monitor its operational challenges, especially given the high costs and infrastructure issues in the fiber optic sector that could impact future profitability and market performance.
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Applied Optoelectronics Executive Sells Shares Amid Market Concerns
- Executive Sell-off: David C Kuo, Senior VP and Chief Legal Officer of Applied Optoelectronics, sold 12,000 shares on January 28, 2026, for approximately $540,660, reducing his direct holdings to 114,636 shares, which represents 0.17% of total outstanding shares.
- Transaction Pattern: This sale aligns with Kuo's median sale size of 12,250 shares since November 2024, indicating a consistent pattern of disposals; despite a 20% increase in stock price in January, the overall performance remains concerning.
- Financial Overview: Applied Optoelectronics has a market capitalization of $2.98 billion and a one-year price change of 64.38%, yet it has reported negative net margins since 2019, struggling with high operating costs, particularly in U.S. infrastructure implementation.
- Investor Considerations: While Kuo's sale was part of a pre-scheduled trading plan, investors should remain vigilant regarding the company's ongoing negative margins and operational challenges, which could adversely affect future stock performance.
Continue Reading