Form 4: AAOI Executive Sells Shares for Tax Obligations

Applied Optoelectronics' SVP and Chief Legal Officer, David C. Kuo, disposed of 4,312 shares of common stock to cover tax withholding obligations related to RSU vestings.

Summary

• David C. Kuo, Senior Vice President and Chief Legal Officer of Applied Optoelectronics, Inc. (AAOI), disposed of 4,312 shares of common stock.
• The transactions occurred on January 22, 2026, at a price of $38.38 per share.
• These shares were surrendered to the issuer to satisfy tax-withholding obligations upon the vesting of restricted stock unit (RSU) awards.
• The RSU awards vested on various dates, including grants from June 27, 2022, June 26, 2023, April 29, 2024, and April 11, 2025.
• Following these transactions, Mr. Kuo beneficially owns 126,636 shares of common stock directly.

Sentiment

Score: 5

Explanation: The filing reports a routine insider transaction for tax withholding purposes upon RSU vesting, which is a neutral event with no significant positive or negative implications for the company's operational or financial performance.

Positives

• The transaction reflects the vesting of previously granted restricted stock units, indicating the executive's continued equity participation and alignment with shareholder interests.

Negatives

• The disposition of shares, while for tax purposes, reduces the executive's direct ownership stake by 4,312 shares.

Risks

• No specific risks are mentioned in this Form 4 filing.

Future Outlook

This filing does not contain any forward-looking statements or guidance.

Management Comments

• David C. Kuo serves as Senior Vice President and Chief Legal Officer of Applied Optoelectronics, Inc.

Industry Context

This Form 4 filing details a routine insider transaction related to executive compensation and tax obligations, which is common across all industries for publicly traded companies. It does not provide specific insights into broader industry trends or competitive landscape.

Comparison to Industry Standards

• This type of transaction (shares surrendered for tax withholding upon RSU vesting) is a standard practice for executive compensation in publicly traded companies across various sectors, including technology and manufacturing. It aligns with common equity compensation plans designed to incentivize long-term performance while managing tax liabilities upon vesting. No specific comparable companies or projects are relevant for this routine administrative filing.

Management Changes

Corporate Governance

Legal Proceedings

• No legal or regulatory matters are disclosed in this filing.

Related Party Transactions

• The transaction involves the surrender of shares to the issuer (Applied Optoelectronics, Inc.) by an executive to satisfy tax obligations related to RSU vesting, which is a standard compensation-related dealing.

Stakeholder Impact

• Shareholders: Minimal direct impact, as it's a routine administrative transaction. It reflects the ongoing compensation structure for executives.
• Employees: No direct impact on general employees.
• Customers/Suppliers/Creditors: No direct impact.

Next Steps

• No specific future actions or milestones are mentioned in this filing beyond the completion of the reported transactions.

Key Dates

Keywords

Applied Optoelectronics, AAOI, Form 4, insider transaction, stock sale, tax withholding, restricted stock units, RSU vesting, David C. Kuo, executive compensation