Shares of Applied Optoelectronics (AAOI) fell sharply by 5.29% during intraday trading on Tuesday.

The decline follows the disclosure that the company's President and CEO, Lin Chih-Hsiang (Thompson), has filed a Form 144 to propose the sale of 58,000 shares of common stock, with an estimated total market value of approximately $10.05 million. Insider selling by a top executive can often be viewed by investors as a potential lack of confidence or a signal to take profits, leading to negative market sentiment and selling pressure.