AXT (NASDAQ:AXTI) Shares Down 9.8% - Here's Why

Key Points

• AXT shares fell 9.8% in mid-day trading, dropping to as low as $58.51 after closing at $62.55 the prior session. Trading volume was far below average, with about 653,397 shares changing hands versus a typical 10.2 million.
• Recent analyst commentary was mixed, but the stock’s consensus rating remains Hold with an average target price of $43.80. Weiss Ratings recently downgraded AXT, while Northland Securities set a much higher $125 target.
• AXT’s latest earnings beat expectations on revenue and EPS, but the company still posted negative profitability metrics and insiders sold shares recently. Hedge funds remain heavily involved, owning nearly half of the stock.

AXT Inc (NASDAQ:AXTI - Get Free Report) shares fell 9.8% during mid-day trading on Friday . The company traded as low as $58.51 and last traded at $56.4120. 653,397 shares traded hands during trading, a decline of 94% from the average session volume of 10,182,988 shares. The stock had previously closed at $62.55.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the stock. Weiss Ratings raised shares of AXT from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, May 27th. Northland Securities set a $125.00 target price on shares of AXT in a research note on Wednesday, June 3rd. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $43.80.

AXT Stock Performance

The company has a fifty day simple moving average of $95.40 and a two-hundred day simple moving average of $58.38. The firm has a market capitalization of $3.70 billion, a PE ratio of -181.96 and a beta of 1.86.

AXT (NASDAQ:AXTI - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The semiconductor company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.03. AXT had a negative return on equity of 5.71% and a negative net margin of 14.69%.The firm had revenue of $26.92 million for the quarter, compared to analyst estimates of $26.22 million. AXT has set its Q2 2026 guidance at 0.060-0.080 EPS. On average, equities analysts anticipate that AXT Inc will post 0.19 earnings per share for the current fiscal year.

Insider Activity

In other news, Director David C. Chang sold 8,333 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $111.17, for a total value of $926,379.61. Following the completion of the sale, the director owned 65,165 shares of the company's stock, valued at approximately $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 accessible through this link. Also, Director Jesse Chen sold 6,172 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $115.24, for a total transaction of $711,261.28. Following the transaction, the director owned 50,275 shares in the company, valued at approximately $5,793,691. This represents a 10.93% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 251,636 shares of company stock worth $27,789,677. 5.97% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AXT

A number of hedge funds have recently made changes to their positions in AXTI. Assenagon Asset Management S.A. grew its stake in AXT by 161.9% in the first quarter. Assenagon Asset Management S.A. now owns 1,505,354 shares of the semiconductor company's stock valued at $85,775,000 after purchasing an additional 930,526 shares during the last quarter. CloudAlpha Capital Management Limited Hong Kong bought a new stake in shares of AXT in the 4th quarter valued at about $22,738,000. Alyeska Investment Group L.P. bought a new stake in shares of AXT in the 4th quarter valued at about $20,187,000. Jane Street Group LLC grew its position in shares of AXT by 1,314.6% in the 4th quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company's stock worth $14,790,000 after buying an additional 840,650 shares during the last quarter. Finally, Bank of America Corp DE grew its position in shares of AXT by 112.0% in the 1st quarter. Bank of America Corp DE now owns 776,300 shares of the semiconductor company's stock worth $44,234,000 after buying an additional 410,181 shares during the last quarter. 49.52% of the stock is currently owned by hedge funds and other institutional investors.

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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