AXT (NASDAQ:AXTI) Shares Gap Up - Still a Buy?

Key Points

• Shares of AXT gapped up from $37.90 to an open of $41.73 with about 4.49 million shares traded, signaling strong intraday buying interest.
• Analyst views are mixed — two Buys, two Holds and one Sell — with an average rating of Hold and an average price target of $22.80, well below the recent market price.
• Fundamentals show weakness: AXT missed quarterly EPS estimates (reported ($0.05)), has negative net margin and ROE, insiders sold 85,000 shares in the past 90 days, and institutions own roughly 49.5% of the stock.

Shares of AXT Inc (NASDAQ:AXTI - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $37.90, but opened at $41.73. AXT shares last traded at $41.7310, with a volume of 4,492,046 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have commented on AXTI shares. Craig Hallum restated a "buy" rating on shares of AXT in a research report on Friday, January 9th. Needham & Company LLC downgraded shares of AXT from a "buy" rating to a "hold" rating in a research note on Tuesday, January 20th. Wall Street Zen raised shares of AXT from a "sell" rating to a "hold" rating in a research note on Saturday, February 14th. UBS Group set a $35.00 target price on AXT in a report on Tuesday, February 17th. Finally, B. Riley Financial lifted their price objective on AXT to $21.00 and gave the stock a "neutral" rating in a research report on Friday, February 20th. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $22.80.

AXT Stock Performance

The business has a fifty day moving average of $21.99 and a two-hundred day moving average of $12.23. The firm has a market cap of $2.44 billion, a price-to-earnings ratio of -91.49 and a beta of 1.96.

AXT (NASDAQ:AXTI - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The semiconductor company reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.01). AXT had a negative net margin of 24.07% and a negative return on equity of 10.59%. The firm had revenue of $23.04 million during the quarter, compared to analysts' expectations of $24.24 million. On average, equities research analysts forecast that AXT Inc will post -0.12 earnings per share for the current year.

Insider Transactions at AXT

In other news, CEO Morris S. Young sold 35,000 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $12.05, for a total transaction of $421,750.00. Following the sale, the chief executive officer directly owned 2,495,564 shares in the company, valued at approximately $30,071,546.20. This represents a 1.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director David C. Chang sold 25,000 shares of the firm's stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $14.84, for a total value of $371,000.00. Following the transaction, the director directly owned 132,744 shares of the company's stock, valued at $1,969,920.96. This represents a 15.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 85,000 shares of company stock valued at $1,101,000. Insiders own 8.80% of the company's stock.

Hedge Funds Weigh In On AXT

Several large investors have recently bought and sold shares of AXTI. CloudAlpha Capital Management Limited Hong Kong bought a new position in shares of AXT during the 4th quarter worth about $22,738,000. Alyeska Investment Group L.P. acquired a new stake in AXT in the fourth quarter worth about $20,187,000. Jane Street Group LLC increased 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 valued at $14,790,000 after buying an additional 840,650 shares in the last quarter. White Pine Capital LLC boosted its holdings in shares of AXT by 2.8% in the second quarter. White Pine Capital LLC now owns 860,411 shares of the semiconductor company's stock valued at $1,798,000 after buying an additional 23,467 shares during the period. Finally, Maytree Asset Management Ltd acquired a new position in shares of AXT during the fourth quarter worth about $11,156,000. 49.52% of the stock is currently owned by institutional investors and hedge funds.

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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