AXT (NASDAQ:AXTI) Trading 13.7% Higher - Here's Why

Key Points

• AXT shares surged 13.7% to $74.19 after the semiconductor company reported quarterly EPS of $0.19, beating the $0.07 consensus estimate, while revenue of $47.59 million exceeded expectations of $34.08 million.
• Analyst sentiment remains mixed: Needham upgraded the stock to “buy” with a $90 target, while B. Riley cut its target to $52 and maintained a “neutral” rating. The overall consensus is “Hold,” with an average price target of $77.
• Insiders have sold 251,636 shares worth approximately $27.8 million over the past 90 days, while institutional investors and hedge funds own about 49.5% of AXT’s outstanding stock.

AXT Inc (NASDAQ:AXTI - Get Free Report) shares rose 13.7% during trading on Wednesday . The stock traded as high as $75.10 and last traded at $74.19. 4,071,014 shares changed hands during mid-day trading, a decline of 60% from the average session volume of 10,284,662 shares. The stock had previously closed at $65.27.

Analyst Upgrades and Downgrades

AXTI has been the subject of a number of research reports. B. Riley Financial lowered their target price on AXT from $73.00 to $52.00 and set a "neutral" rating for the company in a report on Tuesday, July 28th. Northland Securities set a $125.00 price target on AXT in a report on Wednesday, June 3rd. Needham & Company LLC raised AXT from a "hold" rating to a "buy" rating and set a $90.00 price objective for the company in a research report on Friday, July 31st. UBS Group set a $90.00 price objective on AXT in a report on Friday, July 31st. Finally, Weiss Ratings raised AXT from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, May 27th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $77.00.

AXT Price Performance

The business's 50-day moving average is $73.04 and its two-hundred day moving average is $62.65. The firm has a market cap of $4.75 billion, a P/E ratio of 3,629.35 and a beta of 1.90.

AXT (NASDAQ:AXTI - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $0.19 EPS for the quarter, topping the consensus estimate of $0.07 by $0.12. The firm had revenue of $47.59 million for the quarter, compared to analysts' expectations of $34.08 million. AXT had a net margin of 3.23% and a return on equity of 1.55%. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. Equities research analysts predict that AXT Inc will post 0.19 EPS for the current year.

Insider Activity at AXT

In related news, Director David C. Chang sold 8,333 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $111.17, for a total transaction of $926,379.61. Following the completion of the transaction, the director directly owned 65,165 shares of the company's stock, valued at approximately $7,244,393.05. This represents a 11.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Morris S. Young sold 123,601 shares of the business's stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 2,149,533 shares in the company, valued at $243,606,574.89. This trade represents a 5.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 251,636 shares of company stock valued at $27,789,677. Insiders own 5.97% of the company's stock.

Hedge Funds Weigh In On AXT

A number of institutional investors have recently added to or reduced their stakes in the company. CloudAlpha Capital Management Limited Hong Kong bought a new position in shares of AXT in the 4th quarter valued at about $22,738,000. Maytree Asset Management Ltd bought a new stake in shares of AXT in the 4th quarter valued at about $11,156,000. Allworth Financial LP raised its holdings in shares of AXT by 3,764.7% in the 4th quarter. Allworth Financial LP now owns 11,594 shares of the semiconductor company's stock valued at $190,000 after purchasing an additional 11,294 shares during the period. Nano Cap New Millennium Growth Fund L P acquired a new stake in AXT in the 4th quarter valued at about $1,014,000. Finally, Rokos Capital Management LLP bought a new position in AXT during the first quarter worth about $18,842,000. 49.52% of the stock is currently owned by institutional investors and hedge funds.

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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