Applied Optoelectronics (AAOI) saw its stock price plummet 5.10% during intraday trading on Friday, following news of significant insider selling activity.
The sharp decline came after the company's CEO, Lin Chih-Hsiang, filed a Form 144 proposing to sell 59,000 shares of common stock with an approximate market value of $10.19 million. This follows previous sales by the CEO totaling 58,000 shares over the past three months, generating proceeds of approximately $9.7 million.
Such substantial insider selling often signals negative sentiment to investors, potentially explaining the stock's downward movement during the trading session.