AXT (NASDAQ:AXTI) Shares Down 9.2% - Here's Why

Key Points

• AXT shares fell 9.2% to about $74.71 in midday trading, with roughly 4.8 million shares changing hands.
• The company recently beat quarterly expectations, reporting $0.19 EPS versus $0.07 expected and revenue of $47.59 million versus a $34.08 million consensus estimate; it guided for third-quarter EPS of $0.30–$0.32.
• Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and a $77 price target, but insiders sold 251,636 shares worth approximately $27.8 million over the past quarter.

AXT Inc (NASDAQ:AXTI - Get Free Report) shares fell 9.2% on Wednesday . The company traded as low as $76.05 and last traded at $74.7140. Approximately 4,792,425 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 10,461,904 shares. The stock had previously closed at $82.31.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on AXTI. Needham & Company LLC raised AXT from a "hold" rating to a "buy" rating and set a $90.00 price objective for the company in a research note on Friday, July 31st. UBS Group set a $90.00 target price on AXT in a research report on Friday, July 31st. Zacks Research upgraded AXT from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Northland Securities set a $125.00 price target on AXT in a research report on Wednesday, June 3rd. Finally, Weiss Ratings upgraded AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, AXT has an average rating of "Moderate Buy" and a consensus price target of $77.00.

AXT Stock Performance

The stock has a market cap of $4.94 billion, a PE ratio of 3,770.80 and a beta of 1.90. The company's 50 day simple moving average is $68.30 and its 200 day simple moving average is $66.86.

AXT (NASDAQ:AXTI - Get Free Report) last announced its earnings results on Thursday, July 30th. The semiconductor company reported $0.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.07 by $0.12. The firm had revenue of $47.59 million for the quarter, compared to the consensus estimate of $34.08 million. AXT had a return on equity of 0.96% and a net margin of 3.23%.AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. Equities research analysts expect that AXT Inc will post 0.8 earnings per share for the current year.

Insiders Place Their Bets

In other AXT news, Director David C. Chang sold 8,333 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $111.17, for a total value of $926,379.61. Following the completion of the transaction, the director owned 65,165 shares in the company, valued at $7,244,393.05. This represents a 11.34% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jesse Chen sold 13,000 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $95.77, for a total value of $1,245,010.00. Following the completion of the transaction, the director owned 56,447 shares of the company's stock, valued at $5,405,929.19. This trade represents a 18.72% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 251,636 shares of company stock valued at $27,789,677. Insiders own 5.97% of the company's stock.

Institutional Trading of AXT

Large investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in AXT in the second quarter valued at about $365,607,000. CloudAlpha Capital Management Limited Hong Kong purchased a new stake in shares of AXT during the 4th quarter worth approximately $22,738,000. Alyeska Investment Group L.P. bought a new stake in shares of AXT in the 4th quarter worth approximately $20,187,000. Assenagon Asset Management S.A. raised its holdings in shares of AXT by 161.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 1,505,354 shares of the semiconductor company's stock worth $85,775,000 after purchasing an additional 930,526 shares during the period. Finally, Jane Street Group LLC lifted its stake in AXT by 1,314.6% in the fourth quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company's stock valued at $14,790,000 after purchasing an additional 840,650 shares during the last quarter. Hedge funds and other institutional investors own 49.52% of the company's stock.

About AXT

AXT, Inc NASDAQ: AXTI is a global supplier of compound and single-element semiconductor substrates, offering a range of materials critical for high-performance electronic and optoelectronic devices. Founded in 1986 and headquartered in Fremont, California, AXT specializes in the development, manufacture and distribution of wafers composed of gallium arsenide (GaAs), indium phosphide (InP), gallium nitride (GaN) and other compound semiconductor materials. These substrates serve as the foundational platforms for devices used in data communications, wireless infrastructure, advanced computing, consumer electronics and photovoltaic applications.

AXT's product portfolio encompasses a variety of wafer sizes, dopant concentrations and crystal orientations, tailored to meet the precise specifications of its customers.

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