Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Applied Optoelectronics (NASDAQ:AAOI) President and CEO Lin Chih-Hsiang (Thompson) reported purchasing shares of the company’s common stock in a series of transactions, with a total value of $423,413. The insider buying comes as the stock, currently trading at $21.01, has shown significant volatility while delivering a remarkable 158% return over the past year. InvestingPro analysis reveals the company has maintained a healthy liquidity position with a current ratio of 2.11.
According to a Form 4 filing with the Securities and Exchange Commission, on August 12, Lin acquired 6,500 shares through 401(k) at a weighted average price of $23.14, in multiple transactions ranging from $22.80 to $23.40. The total value of this transaction was $150,410.
On August 13, Lin made two additional purchases. The first was for 8,850 shares at a weighted average price of $22.53, in multiple transactions ranging from $22.13 to $22.99, totaling $199,390. The second purchase was for 3,250 shares through 401(k) at a weighted average price of $22.65, in multiple transactions ranging from $22.15 to $23.27, totaling $73,613.
Following these transactions, Lin directly and indirectly owns a total of 1,655,415 shares of Applied Optoelectronics.
In other recent news, Applied Optoelectronics reported second-quarter 2025 financial results, which showed earnings per share of $(0.16) and revenue of $103 million, both below analyst expectations of $(0.07) and $105.9 million, respectively. Despite these results, Rosenblatt reiterated its Buy rating on the company, highlighting the sequential growth in 400G products and projecting that 400G sales will surpass 100G sales by the fourth quarter of 2025. Rosenblatt also noted that Applied Optoelectronics’ third-quarter guidance suggests a potential record revenue of approximately $121 million, with Amazon likely becoming a significant customer. Needham maintained its Buy rating and $32.00 price target, citing the company’s 800G potential, despite the second-quarter results missing consensus estimates due to higher operating expenses. B.Riley, however, lowered its price target from $15.00 to $13.00 while maintaining a Neutral rating on the stock. The company’s 400G product line saw a significant rebound, growing 212% to $9 million in the second quarter after a previous decline. These developments highlight a mix of challenges and opportunities for Applied Optoelectronics as it navigates the evolving market landscape.
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