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

Key Points

• AXT shares fell 8.3%, opening at $66.63 after closing at $70.74 and last trading at $63.27. The company has a $4.25 billion market capitalization and a beta of 1.90.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $77.00, although targets range from $52 to $125.
• AXT exceeded quarterly expectations, reporting $0.19 in earnings per share versus $0.07 expected and $47.59 million in revenue versus $34.08 million forecast. However, insiders sold 258,136 shares worth $28.4 million over the past three months.

AXT Inc (NASDAQ:AXTI - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $70.74, but opened at $66.63. AXT shares last traded at $63.27, with a volume of 2,574,954 shares.

Analyst Ratings Changes

Several brokerages have recently commented on AXTI. Needham & Company LLC upgraded shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 target price for the company in a report on Friday, July 31st. B. Riley Financial reduced their price objective on shares of AXT from $73.00 to $52.00 and set a "neutral" rating for the company in a research report on Tuesday, July 28th. Weiss Ratings upgraded shares of AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. UBS Group set a $90.00 target price on shares of AXT in a research report on Friday, July 31st. Finally, Northland Securities set a $125.00 target price on AXT in a research note on Wednesday, June 3rd. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $77.00.

AXT Trading Down 8.3%

The stock has a market capitalization of $4.25 billion, a PE ratio of 3,228.90 and a beta of 1.90. The firm has a 50-day moving average price of $67.22 and a 200-day moving average price of $67.99.

AXT (NASDAQ:AXTI - Get Free Report) last issued its quarterly 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. AXT had a net margin of 3.23% and a return on equity of 0.96%. The company had revenue of $47.59 million for the quarter, compared to the consensus estimate of $34.08 million. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. Sell-side analysts expect that AXT Inc will post 0.8 earnings per share for the current fiscal year.

Insider Activity at AXT

In other news, Director Jesse Chen sold 13,000 shares of the stock in a transaction that occurred on 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 completion of the transaction, the director directly owned 56,447 shares of the company's stock, valued at $5,405,929.19. This represents a 18.72% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Leonard J. Leblanc sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $96.07, for a total transaction of $384,280.00. Following the sale, the director owned 113,129 shares of the company's stock, valued at approximately $10,868,303.03. The trade was a 3.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 258,136 shares of company stock valued at $28,395,372 in the last three months. Insiders own 5.97% of the company's stock.

Institutional Trading of AXT

A number of large investors have recently bought and sold shares of AXTI. CloudAlpha Capital Management Limited Hong Kong purchased a new position in shares of AXT in the fourth quarter worth about $22,738,000. Maytree Asset Management Ltd bought a new stake in shares of AXT in the fourth quarter valued at approximately $11,156,000. California State Teachers Retirement System purchased a new stake in shares of AXT during the 1st quarter valued at approximately $3,670,000. Bank of America Corp DE lifted its stake in shares of AXT by 112.0% during the 1st quarter. Bank of America Corp DE now owns 776,300 shares of the semiconductor company's stock valued at $44,234,000 after buying an additional 410,181 shares in the last quarter. Finally, Janus Henderson Group PLC bought a new position in AXT in the 1st quarter worth approximately $1,395,000. 49.52% of the stock is 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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