AXT (NASDAQ:AXTI) Stock Price Down 5.2% - Here's Why

Key Points

• AXT shares fell 5.2% intraday, trading as low as $73 and last at $78.31 on light volume (3.18M shares, down 68% vs. the ~10M average), despite a market cap of $4.17 billion and a 50-day/200-day moving average of $46.41/$24.68.
• Analysts are mixed with a consensus rating of "Hold" and an average price target of $22.80—well below the current price—while individual targets and ratings range from sell to buy.
• Earnings and insider activity: AXT missed quarterly EPS estimates (‑$0.05 vs. ‑$0.04 expected) and revenue fell short, and insiders have sold about 502,278 shares (~$21.2M) over the past three months, including recent CEO and director sales.

AXT Inc (NASDAQ:AXTI - Get Free Report)'s stock price traded down 5.2% during mid-day trading on Monday . The stock traded as low as $73.00 and last traded at $78.3080. 3,176,388 shares traded hands during trading, a decline of 68% from the average session volume of 9,998,763 shares. The stock had previously closed at $82.56.

Analyst Upgrades and Downgrades

Several research firms have recently commented on AXTI. Northland Securities set a $20.00 price objective on AXT in a research note on Monday, December 22nd. Wall Street Zen raised shares of AXT from a "sell" rating to a "hold" rating in a report on Saturday, February 14th. Craig Hallum restated a "buy" rating on shares of AXT in a research note on Friday, January 9th. Wedbush lifted their price target on shares of AXT from $8.50 to $28.00 and gave the company an "outperform" rating in a report on Friday, February 20th. Finally, B. Riley Financial upped their price target on shares of AXT to $21.00 and gave the stock a "neutral" rating in a research report on Friday, February 20th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, AXT currently has a consensus rating of "Hold" and an average price target of $22.80.

AXT Stock Down 9.2%

The stock has a market cap of $4.17 billion, a P/E ratio of -156.07 and a beta of 1.51. The business has a 50 day moving average price of $46.41 and a two-hundred day moving average price of $24.68.

AXT (NASDAQ:AXTI - Get Free Report) last issued its earnings results on Thursday, February 19th. The semiconductor company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). AXT had a negative net margin of 24.07% and a negative return on equity of 9.50%. The business had revenue of $23.04 million for the quarter, compared to the consensus estimate of $24.24 million. On average, research analysts forecast that AXT Inc will post -0.12 earnings per share for the current year.

Insider Transactions at AXT

In related news, Director Jesse Chen sold 8,083 shares of the business's stock in a transaction dated Friday, March 13th. The stock was sold at an average price of $50.25, for a total value of $406,170.75. Following the sale, the director directly owned 109,526 shares in the company, valued at approximately $5,503,681.50. The trade was a 6.87% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Morris S. Young sold 37,905 shares of the firm's stock in a transaction that occurred on Friday, March 13th. The shares were sold at an average price of $51.13, for a total value of $1,938,082.65. Following the transaction, the chief executive officer owned 2,275,328 shares of the company's stock, valued at $116,337,520.64. This represents a 1.64% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 502,278 shares of company stock valued at $21,196,754. 5.97% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AXT

Institutional investors and hedge funds have recently modified their holdings of the stock. XTX Topco Ltd bought a new position in AXT during the 2nd quarter valued at about $42,000. Jefferies Financial Group Inc. purchased a new position in shares of AXT during the third quarter valued at approximately $52,000. State of Wyoming purchased a new position in shares of AXT during the fourth quarter valued at approximately $69,000. Creative Planning bought a new position in shares of AXT during the second quarter valued at approximately $86,000. Finally, Kestra Advisory Services LLC purchased a new stake in shares of AXT in the fourth quarter worth approximately $98,000. 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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