B. Riley Financial Issues Positive Forecast for AXT (NASDAQ:AXTI) Stock Price

Key Points

• B. Riley Financial raised its AXT price target from $55 to $56 but kept a “neutral” rating, implying about 8% downside from the stock’s reported $60.88 price. Analysts overall have an average “Hold” rating and a consensus target of $77.80.
• AXT significantly beat third-quarter expectations: adjusted EPS was $0.41 versus the $0.31 consensus, while revenue reached $73.41 million versus estimates of $66 million.
• Investor sentiment remains mixed as the stock trades amid substantial volatility, reported insider selling, and uncertainty tied to export permits and China-related approvals, despite recent institutional buying and proposed financing for its Tongmei subsidiary.

AXT (NASDAQ:AXTI - Get Free Report) had its target price increased by equities researchers at B. Riley Financial from $55.00 to $56.00 in a report released on Friday, Benzinga reports. The firm currently has a "neutral" rating on the semiconductor company's stock. B. Riley Financial's price target would indicate a potential downside of 8.02% from the company's current price.

Several other equities research analysts have also recently weighed in on the company. Needham & Company LLC raised AXT from a "hold" rating to a "buy" rating and set a $90.00 price target on the stock in a research note on Friday, July 31st. Zacks Research cut shares of AXT from a "strong-buy" rating to a "hold" rating in a report on Tuesday, September 29th. Weiss Ratings upgraded shares of AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. Finally, UBS Group set a $90.00 target price on AXT in a research note on Friday, July 31st. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, AXT currently has an average rating of "Hold" and an average price target of $77.80.

AXT Price Performance

AXTI opened at $60.88 on Friday. The firm has a market capitalization of $3.99 billion, a P/E ratio of 3,044.00 and a beta of 1.86. The company has a fifty day moving average price of $66.62 and a 200-day moving average price of $63.91. AXT has a one year low of $6.83 and a one year high of $143.16.

AXT (NASDAQ:AXTI - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The semiconductor company reported $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.31 by $0.10. The company had revenue of $73.41 million during the quarter, compared to analysts' expectations of $66.00 million. AXT had a net margin of 3.23% and a return on equity of 0.96%. On average, analysts expect that AXT will post 0.80 earnings per share for the current year.

Insider Buying and Selling at AXT

In other news, Director Leonard Leblanc sold 4,000 shares of the business's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $96.07, for a total value of $384,280.00. Following the transaction, the director directly owned 113,129 shares in the company, valued at $10,868,303.03. The trade was a 3.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 5.97% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Oregon Public Employees Retirement Fund bought a new position in AXT during the third quarter valued at $1,115,000. BOCHK Asset Management Ltd purchased a new stake in shares of AXT in the third quarter valued at $7,226,000. Profund Advisors LLC purchased a new stake in shares of AXT in the third quarter valued at $227,000. ProShare Advisors LLC lifted its holdings in shares of AXT by 6.9% in the 3rd quarter. ProShare Advisors LLC now owns 8,742 shares of the semiconductor company's stock worth $677,000 after acquiring an additional 563 shares during the last quarter. Finally, Bosman Wealth Management LLC lifted its holdings in shares of AXT by 42.8% in the 3rd quarter. Bosman Wealth Management LLC now owns 7,409 shares of the semiconductor company's stock worth $574,000 after acquiring an additional 2,220 shares during the last quarter. 49.52% of the stock is currently owned by institutional investors.

Key Stories Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Third-quarter results substantially exceeded expectations. AXT reported adjusted EPS of $0.41, versus the $0.31 consensus estimate, while revenue reached approximately $73.4 million, above expectations of $66.0 million. EPS improved from a loss of $0.03 in the year-ago quarter. AXT Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Growth and profitability accelerated. Revenue increased 54% sequentially and 162% year over year to a record $73.4 million, driven by demand for indium phosphide materials. GAAP gross margin expanded to 56.0% from 44.9% in the prior quarter, while GAAP net income rose to $25.7 million from $11.1 million. AXT Q3 Revenue Reaches Record $73.4 Million
• Positive Sentiment: Tongmei financing could support expansion. AXT announced agreements for up to RMB 3.67 billion, or approximately $545 million, in private-equity financing for its Tongmei subsidiary. The funds may strengthen the subsidiary’s capital base and support growth, although the eventual structure and dilution implications remain important for investors. AXT Announces Financing for Tongmei
• Neutral Sentiment: The stock’s technical and valuation profile remains volatile. AXTI recently moved above its 200-day moving average, but it trades well below its 50-day average and carries a very high reported P/E ratio. These factors can amplify reactions to earnings and profit-taking.
• Negative Sentiment: Profit-taking and risk reduction are weighing on sentiment. The stock had risen sharply in recent weeks, encouraging investors to lock in gains ahead of earnings. Export permits, China-related approvals and broader semiconductor volatility add further uncertainty. AXT Falls as Investors Take Profits
• Negative Sentiment: Reported insider activity is a cautionary signal. The supplied data shows 16 open-market insider sales and no purchases over the past six months, including significant sales by executives.

About AXT

AXT, Inc develops and manufactures compound semiconductor substrates used as the foundation for various high-performance electronic and optoelectronic devices. Its principal products include gallium arsenide (GaAs), indium phosphide (InP), and germanium substrates, along with other specialty materials such as gallium antimonide and indium arsenide.

The company's substrates are used in applications including wireless communications, fiber-optic and data-center networks, lasers, light-emitting diodes, solar cells, consumer electronics, and aerospace and defense systems.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.