AXT (NASDAQ:AXTI) Shares Gap Down - Should You Sell?

Key Points

• AXT shares fell sharply, opening at $88.70 versus a prior close of $95.97 and last trading near $90.12. The stock’s market capitalization was approximately $5.46 billion.
• Analyst sentiment remains mixed but leans positive, with a consensus rating of “Moderate Buy” and an average price target of $77.00. Recent targets range from $52 at B. Riley to $125 at Northland Securities.
• AXT exceeded quarterly expectations, reporting $0.19 in earnings per share versus a $0.07 consensus estimate and $47.59 million in revenue versus $34.08 million expected. However, insiders sold 251,636 shares worth approximately $27.8 million over the past 90 days.

Shares of AXT Inc (NASDAQ:AXTI - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $95.97, but opened at $88.70. AXT shares last traded at $90.12, with a volume of 3,163,124 shares changing hands.

Wall Street Analyst Weigh In

AXTI has been the topic of a number of recent analyst reports. B. Riley Financial dropped their price target on AXT from $73.00 to $52.00 and set a "neutral" rating on the stock in a report on Tuesday, July 28th. UBS Group set a $90.00 price objective on AXT in a research note on Friday, July 31st. Weiss Ratings raised AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Friday. Northland Securities set a $125.00 target price on AXT in a research report on Wednesday, June 3rd. Finally, Zacks Research raised shares of AXT from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $77.00.

AXT Stock Down 13.0%

The firm has a 50 day moving average of $68.22 and a 200 day moving average of $66.40. The firm has a market cap of $5.46 billion, a PE ratio of 4,230.75 and a beta of 1.90.

AXT (NASDAQ:AXTI - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.12. The business had revenue of $47.59 million during the quarter, compared to analyst estimates 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. On average, research analysts anticipate that AXT Inc will post 0.8 EPS for the current year.

Insider Transactions at AXT

In related news, CEO Morris S. Young sold 123,601 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $113.33, for a total value of $14,007,701.33. Following the sale, the chief executive officer directly owned 2,149,533 shares in the company, valued at approximately $243,606,574.89. The trade was a 5.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Jesse Chen sold 13,000 shares of the company's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $95.77, for a total transaction of $1,245,010.00. Following the sale, the director directly owned 56,447 shares in the company, valued at approximately $5,405,929.19. This trade represents a 18.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 251,636 shares of company stock worth $27,789,677. 5.97% of the stock is owned by company insiders.

Hedge Funds Weigh In On AXT

Large investors have recently modified their holdings of the business. American Capital Advisory LLC bought a new stake in shares of AXT in the first quarter valued at approximately $27,000. Kohmann Bosshard Financial Services LLC bought a new position in AXT in the 1st quarter worth approximately $31,000. XTX Topco Ltd bought a new position in AXT in the 2nd quarter worth approximately $42,000. Jefferies Financial Group Inc. purchased a new position in AXT in the 3rd quarter valued at approximately $52,000. Finally, Global Retirement Partners LLC purchased a new position in AXT in the 2nd quarter valued at approximately $55,000. Hedge funds and other institutional investors own 49.52% of the company's stock.

AXT Company Profile

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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