AXT (NASDAQ:AXTI) Shares Gap Down - Should You Sell?

Key Points

• AXT shares fell 5.9%, opening at $76.64 versus the prior close of $79.93, amid trading volume of roughly 1.9 million shares.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and a $77 price target; ratings range from Strong Buy to Sell.
• AXT beat quarterly expectations, reporting $0.19 in EPS on $47.59 million in revenue versus estimates of $0.07 and $34.08 million, respectively. The company guided for third-quarter 2026 EPS of $0.30–$0.32.

AXT Inc (NASDAQ:AXTI - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $79.93, but opened at $76.64. AXT shares last traded at $76.78, with a volume of 1,911,514 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts have weighed in on AXTI shares. Northland Securities set a $125.00 price objective on shares of AXT in a report on Wednesday, June 3rd. UBS Group set a $90.00 target price on shares of AXT in a report on Friday, July 31st. Zacks Research raised shares of AXT from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. Needham & Company LLC raised shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 target price on the stock in a research report on Friday, July 31st. Finally, Weiss Ratings upgraded shares of AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $77.00.

AXT Trading Down 5.9%

The business has a 50 day moving average of $63.69 and a 200-day moving average of $73.19. The stock has a market cap of $4.93 billion, a PE ratio of 3,804.10 and a beta of 1.92.

AXT (NASDAQ:AXTI - Get Free Report) last released 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 company had revenue of $47.59 million for the quarter, compared to analyst estimates of $34.08 million. AXT had a return on equity of 0.96% and a net margin of 3.23%.AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. Research analysts expect that AXT Inc will post 0.8 EPS for the current fiscal year.

Insider Transactions at AXT

In related news, Director Leonard Leblanc sold 4,000 shares of the firm's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $96.07, for a total transaction of $384,280.00. Following the transaction, the director owned 113,129 shares of the company's stock, valued at $10,868,303.03. This trade represents a 3.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Insiders own 5.97% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of AXTI. NewEdge Advisors LLC increased its stake in AXT by 79.0% in the 2nd quarter. NewEdge Advisors LLC now owns 3,158 shares of the semiconductor company's stock valued at $228,000 after buying an additional 1,394 shares during the period. Squarepoint Ops LLC lifted its stake in shares of AXT by 1,347.0% in the 2nd quarter. Squarepoint Ops LLC now owns 312,999 shares of the semiconductor company's stock worth $22,561,000 after acquiring an additional 291,368 shares during the period. Arizona State Retirement System boosted its holdings in shares of AXT by 10.4% in the second quarter. Arizona State Retirement System now owns 15,928 shares of the semiconductor company's stock valued at $1,148,000 after acquiring an additional 1,505 shares in the last quarter. Nykredit A S purchased a new stake in shares of AXT in the second quarter valued at about $152,000. Finally, Amundi acquired a new position in shares of AXT during the second quarter worth about $200,000. Institutional investors and hedge funds own 49.52% of the company's stock.

About AXT

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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