AXT (NASDAQ:AXTI) Shares Gap Up - Here's What Happened

Key Points

• AXT shares surged at the open, rising from a prior close of $39.31 to $43.03 and later trading at $45.38, on volume of about 3.25 million shares.
• Analysts give AXT an average “Moderate Buy” rating and a $77.80 average price target, though recommendations range from Strong Buy to Sell.
• In its latest quarter, AXT reported EPS of $0.41, beating the $0.31 consensus estimate, and revenue of $73.41 million versus expectations of $66 million.

Shares of AXT Inc (NASDAQ:AXTI - Get Free Report) gapped up before the market opened on Wednesday. The stock had previously closed at $39.31, but opened at $43.03. AXT shares last traded at $45.3840, with a volume of 3,253,837 shares.

Analysts Set New Price Targets

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

AXT Stock Performance

The company's fifty day moving average is $63.26 and its two-hundred day moving average is $64.84. The firm has a market cap of $3.17 billion, a price-to-earnings ratio of 106.89 and a beta of 2.01.

AXT (NASDAQ:AXTI - Get Free Report) last announced its quarterly 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 during the quarter, compared to the consensus estimate of $66.00 million. AXT had a return on equity of 5.21% and a net margin of 18.53%. As a group, analysts forecast that AXT Inc will post 1.11 earnings per share for the current fiscal year.

Insider Activity

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 sale, the director directly owned 113,129 shares in the company, valued at approximately $10,868,303.03. This trade represents a 3.42% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 5.97% of the company's stock.

Institutional Trading of AXT

Several large investors have recently bought and sold shares of the company. Reyes Financial Architecture Inc. purchased a new position in shares of AXT in the third quarter valued at $42,000. Global Retirement Partners LLC purchased a new position in AXT in the 2nd quarter valued at about $55,000. Signaturefd LLC boosted its position in AXT by 440.9% in the 3rd quarter. Signaturefd LLC now owns 952 shares of the semiconductor company's stock valued at $74,000 after buying an additional 776 shares during the last quarter. KBC Group NV purchased a new position in AXT in the 1st quarter valued at about $88,000. Finally, Pinnacle Wealth Planning Services Inc. grew its stake in shares of AXT by 143.1% during the third quarter. Pinnacle Wealth Planning Services Inc. now owns 1,269 shares of the semiconductor company's stock valued at $98,000 after acquiring an additional 747 shares in the last quarter. Institutional investors and hedge funds own 49.52% of the company's stock.

About AXT

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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