AXT (NASDAQ:AXTI) Trading Down 7.8% - What's Next?

Key Points

• AXT shares fell 7.8% in Friday trading, dropping to as low as $48.78 after closing at $52.93 the previous day. Trading volume was far below normal, with about 805,887 shares changing hands versus a 10.0 million average.
• Wall Street’s view on AXT is mixed: analysts have a consensus rating of Hold with an average price target of $43.80, though Northland Securities recently set a much higher $125 target. The stock currently has two Buy ratings, two Hold ratings, and one Sell rating.
• The company most recently beat earnings and revenue estimates, reporting a smaller-than-expected loss and Q2 2026 guidance of $0.06 to $0.08 EPS. However, insider selling has been notable, including recent sales by the CEO and a director.

AXT Inc (NASDAQ:AXTI - Get Free Report)'s share price dropped 7.8% during mid-day trading on Friday . The company traded as low as $48.78 and last traded at $48.79. Approximately 805,887 shares traded hands during trading, a decline of 92% from the average daily volume of 10,029,648 shares. The stock had previously closed at $52.93.

Wall Street Analysts Forecast Growth

AXTI has been the subject of a number of research reports. Northland Securities set a $125.00 price target on shares of AXT in a report on Wednesday, June 3rd. Weiss Ratings upgraded shares of AXT from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, May 27th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $43.80.

AXT Price Performance

The stock has a market cap of $3.23 billion, a P/E ratio of -161.22 and a beta of 1.86. The company has a fifty day moving average price of $84.36 and a 200 day moving average price of $60.96.

AXT (NASDAQ:AXTI - Get Free Report) last issued its earnings results on Thursday, April 30th. The semiconductor company reported ($0.01) earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.03. AXT had a negative return on equity of 5.71% and a negative net margin of 14.69%.The company had revenue of $26.92 million for the quarter, compared to analyst estimates of $26.22 million. AXT has set its Q2 2026 guidance at 0.060-0.080 EPS. As a group, sell-side analysts expect that AXT Inc will post 0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at AXT

In related news, Director David C. Chang sold 8,333 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $111.17, for a total value of $926,379.61. Following the sale, the director owned 65,165 shares in the company, valued at $7,244,393.05. This represents a 11.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Morris S. Young sold 123,601 shares of the firm's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $113.33, for a total transaction of $14,007,701.33. Following the completion of the transaction, the chief executive officer directly owned 2,149,533 shares in the company, valued at approximately $243,606,574.89. The trade was a 5.44% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 251,636 shares of company stock valued at $27,789,677. Corporate insiders own 5.97% of the company's stock.

Institutional Trading of AXT

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AXTI. Acadian Asset Management LLC lifted its holdings in shares of AXT by 2.8% in the first quarter. Acadian Asset Management LLC now owns 293,818 shares of the semiconductor company's stock valued at $412,000 after purchasing an additional 8,039 shares in the last quarter. Creative Planning purchased a new stake in AXT in the 2nd quarter valued at $86,000. XTX Topco Ltd purchased a new stake in AXT in the 2nd quarter valued at $42,000. Dimensional Fund Advisors LP bought a new position in AXT during the 3rd quarter valued at $145,000. Finally, Jefferies Financial Group Inc. bought a new position in AXT during the 3rd quarter valued at $52,000. 49.52% of the stock is owned by 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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