AXT (NASDAQ:AXTI) Shares Gap Down - Here's Why

Key Points

• AXT shares fell 8.8%, opening at $59.68 after previously closing at $64.77, and last traded near $60.61. The stock is below its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed but leans positive: AXT has a consensus “Moderate Buy” rating and an average price target of $77, despite B. Riley cutting its target to $52.
• AXT reported quarterly earnings of $0.19 per share, well above the $0.07 estimate, while revenue of $47.59 million also exceeded expectations. A director subsequently sold 4,000 shares at an average price of $96.07.

AXT Inc (NASDAQ:AXTI - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $64.77, but opened at $59.68. AXT shares last traded at $60.61, with a volume of 1,956,053 shares.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on AXTI shares. Zacks Research upgraded AXT from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Weiss Ratings raised AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. B. Riley Financial reduced their target price on AXT from $73.00 to $52.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 28th. Northland Securities set a $125.00 price target on AXT in a research note on Wednesday, June 3rd. Finally, Needham & Company LLC upgraded AXT from a "hold" rating to a "buy" rating and set a $90.00 price target for the company in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, AXT has a consensus rating of "Moderate Buy" and an average price target of $77.00.

AXT Trading Down 8.8%

The stock has a market capitalization of $3.87 billion, a price-to-earnings ratio of 2,963.75 and a beta of 1.92. The firm's fifty day moving average price is $62.79 and its 200 day moving average price is $72.08.

AXT (NASDAQ:AXTI - Get Free Report) last posted its earnings results on Thursday, July 30th. The semiconductor company reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.12. AXT had a net margin of 3.23% and a return on equity of 0.96%. The firm had revenue of $47.59 million during the quarter, compared to the consensus estimate of $34.08 million. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. On average, analysts forecast that AXT Inc will post 0.8 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Leonard Leblanc sold 4,000 shares of the business's stock in a transaction on Monday, August 17th. The stock was sold at an average price of $96.07, for a total value of $384,280.00. Following the sale, the director owned 113,129 shares in the company, valued at approximately $10,868,303.03. The trade was a 3.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 5.97% of the company's stock.

Hedge Funds Weigh In On AXT

Several institutional investors have recently bought and sold shares of the company. American Capital Advisory LLC acquired a new stake in shares of AXT during the first quarter worth about $27,000. Kohmann Bosshard Financial Services LLC acquired a new position in shares of AXT in the first quarter valued at approximately $31,000. XTX Topco Ltd acquired a new position in shares of AXT in the second quarter valued at approximately $42,000. Jefferies Financial Group Inc. purchased a new stake in AXT during the 3rd quarter worth approximately $52,000. Finally, Global Retirement Partners LLC purchased a new stake in AXT during the 2nd quarter worth approximately $55,000. 49.52% of the stock is owned by institutional investors and hedge funds.

AXT Company Profile

AXT, Inc NASDAQ: AXTI develops and manufactures compound semiconductor substrates used to produce high-performance electronic and optoelectronic devices. Its product portfolio includes gallium arsenide (GaAs), indium phosphide (InP), and germanium substrates, along with related materials and services supporting semiconductor manufacturing.

The company's substrates are used in applications such as wireless communications, fiber-optic and data-center networking, optical sensing, laser devices, aerospace and defense systems, and solar cells.

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