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

Key Points

• AXT shares fell sharply: The stock opened at $42.78 after a previous close of $46.97 and was last trading at $42.17, down about 10% from the prior close.
• Analyst sentiment remains broadly positive, with a MarketBeat consensus of “Moderate Buy” and a $77.80 price target, despite mixed individual ratings.
• AXT’s latest quarterly results beat expectations, reporting EPS of $0.41 versus $0.31 forecast and revenue of $73.41 million versus $66 million expected.

AXT Inc (NASDAQ:AXTI - Get Free Report) gapped down prior to trading on Thursday. The stock had previously closed at $46.97, but opened at $42.78. AXT shares last traded at $42.17, with a volume of 3,496,889 shares trading hands.

Analyst Ratings Changes

Several research analysts have issued reports on the stock. Needham & Company LLC upgraded shares of 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. Zacks Research raised shares of AXT from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, November 4th. Weiss Ratings upgraded shares of AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research report on Friday, August 14th. B. Riley Financial lifted their target price on shares of AXT from $55.00 to $56.00 and gave the stock a "neutral" rating in a research note on Friday, October 30th. Finally, UBS Group set a $90.00 price target on AXT in a research note on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, AXT currently has an average rating of "Moderate Buy" and a consensus price target of $77.80.

AXT Trading Down 4.8%

The firm has a 50-day moving average price of $63.07 and a 200-day moving average price of $64.99. The stock has a market capitalization of $2.93 billion, a PE ratio of 99.24 and a beta of 2.01.

AXT (NASDAQ:AXTI - Get Free Report) last issued its earnings results on Thursday, October 29th. The semiconductor company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.10. The firm had revenue of $73.41 million for the quarter, compared to analyst estimates of $66.00 million. AXT had a return on equity of 5.21% and a net margin of 18.53%. Sell-side analysts expect that AXT Inc will post 1.11 earnings per share for the current fiscal year.

Insider Buying and Selling at AXT

In related news, Director Leonard Leblanc sold 4,000 shares of the firm's stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $96.07, for a total value of $384,280.00. Following the sale, the director directly 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 sale was disclosed in a document filed with the SEC, which is available through the SEC website. 5.97% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AXT

A number of institutional investors have recently made changes to their positions in the business. Reyes Financial Architecture Inc. purchased a new position in shares of AXT in the third quarter valued at about $42,000. Global Retirement Partners LLC bought a new stake in shares of AXT in the second quarter worth about $55,000. Signaturefd LLC increased its holdings in AXT by 440.9% during the 3rd quarter. Signaturefd LLC now owns 952 shares of the semiconductor company's stock valued at $74,000 after purchasing an additional 776 shares during the period. KBC Group NV purchased a new position in AXT during the 1st quarter valued at about $88,000. Finally, Pinnacle Wealth Planning Services Inc. increased its holdings in AXT by 143.1% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,269 shares of the semiconductor company's stock valued at $98,000 after purchasing an additional 747 shares during the period. Hedge funds and other institutional investors own 49.52% of the company's stock.

AXT Company Profile

AXT, Inc. develops and manufactures compound semiconductor substrate materials used to make electronic and optoelectronic devices. Its products include indium phosphide, gallium arsenide and germanium substrates, supplied in wafer form for use by semiconductor manufacturers. These materials support applications such as fiber-optic and data communications, wireless devices, lasers, LEDs and solar cells. AXT also provides substrate processing services, including wafer polishing and finishing. Founded in 1986 and headquartered in Fremont, California, AXT serves customers around the world.

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