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

Key Points

• AXT shares surged 19.5%, opening at $41.24 after previously closing at $36.97 and later trading near $43.12 on heavy volume.
• Analyst sentiment remains mixed: two analysts rate the stock Buy, two Hold, and one Sell, producing an overall “Hold” rating and an average price target of $50. B. Riley lowered its target to $52, while Northland set a much higher $125 target.
• AXT exceeded quarterly expectations with a $0.01 loss per share versus the expected $0.04 loss and revenue of $26.92 million, but it remains unprofitable; insiders also sold roughly $27.8 million of stock over the past 90 days.

AXT Inc (NASDAQ:AXTI - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $36.97, but opened at $41.24. AXT shares last traded at $43.1220, with a volume of 2,612,565 shares.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Weiss Ratings raised AXT from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, May 27th. Northland Securities set a $125.00 target price on shares of AXT in a research report on Wednesday, June 3rd. Finally, B. Riley Financial cut their price target on shares of AXT from $73.00 to $52.00 and set a "neutral" rating for the company in a report on Tuesday. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $50.00.

AXT Trading Up 19.5%

The stock has a fifty day moving average of $78.92 and a two-hundred day moving average of $61.58. The stock has a market capitalization of $2.89 billion, a price-to-earnings ratio of -143.00 and a beta of 1.86.

AXT (NASDAQ:AXTI - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The semiconductor company reported ($0.01) EPS for the quarter, topping analysts' consensus estimates of ($0.04) by $0.03. The company had revenue of $26.92 million for the quarter, compared to analyst estimates of $26.22 million. AXT had a negative return on equity of 5.71% and a negative net margin of 14.69%. Equities analysts expect that AXT Inc will post 0.19 earnings per share for the current year.

Insider Activity at AXT

In other AXT news, Director Jesse Chen sold 13,000 shares of the firm's stock in a transaction dated 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 sale, the director owned 56,447 shares in the company, valued at approximately $5,405,929.19. This trade represents a 18.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director David C. Chang sold 8,333 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $111.17, for a total transaction of $926,379.61. Following the completion of the sale, the director owned 65,165 shares of the company's stock, valued at $7,244,393.05. The trade was a 11.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 251,636 shares of company stock valued at $27,789,677 over the last ninety days. 5.97% of the stock is owned by insiders.

Hedge Funds Weigh In On AXT

Several large investors have recently made changes to their positions in AXTI. Kestra Advisory Services LLC boosted its holdings in AXT by 6.8% in the first quarter. Kestra Advisory Services LLC now owns 6,408 shares of the semiconductor company's stock valued at $365,000 after acquiring an additional 408 shares during the last quarter. American Capital Advisory LLC bought a new stake in AXT during the 1st quarter worth about $27,000. Kohmann Bosshard Financial Services LLC bought a new stake in AXT during the 1st quarter worth about $31,000. Leonteq Securities AG acquired a new position in AXT during the 1st quarter valued at about $57,000. Finally, Tema ETFs LLC acquired a new position in AXT during the 2nd quarter valued at about $105,000. Institutional investors and hedge funds 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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