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

Key Points

• AXT shares opened sharply higher, rising from a prior close of $65.40 to $68.20 and last trading near $69.17 on volume of roughly 1.9 million shares.
• Analyst views remain mixed, but the stock carries a consensus “Moderate Buy” rating with an average price target of $77.00; recent targets range from $52 to $125.
• AXT beat quarterly expectations with $0.19 in EPS versus $0.07 expected and revenue of $47.59 million versus $34.08 million expected. However, insiders sold 258,136 shares worth approximately $28.4 million over the past 90 days.

AXT Inc (NASDAQ:AXTI - Get Free Report) shares gapped up before the market opened on Tuesday . The stock had previously closed at $65.40, but opened at $68.20. AXT shares last traded at $69.1650, with a volume of 1,885,071 shares trading hands.

Analyst Upgrades and Downgrades

Several analysts have commented on AXTI shares. Northland Securities set a $125.00 price target on shares of AXT in a research note on Wednesday, June 3rd. B. Riley Financial decreased 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. Weiss Ratings raised AXT from a "sell (d-)" rating to a "sell (d+)" rating in a research note on Friday, August 14th. 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. Finally, UBS Group set a $90.00 price target on AXT in a report on Friday, July 31st. One research 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 assigned a Sell rating to the company. According to data from MarketBeat.com, AXT has a consensus rating of "Moderate Buy" and an average target price of $77.00.

AXT Stock Performance

The company's fifty day moving average price is $66.32 and its 200-day moving average price is $68.32. The stock has a market cap of $4.54 billion, a P/E ratio of 3,463.50 and a beta of 1.90.

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

Insiders Place Their Bets

In related news, Director David C. Chang sold 8,333 shares of the business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $111.17, for a total transaction of $926,379.61. Following the completion of the transaction, the director owned 65,165 shares in the company, valued at $7,244,393.05. The trade was a 11.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Leonard J. Leblanc sold 4,000 shares of the company's stock in a transaction 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 completion of the transaction, the director directly owned 113,129 shares in the company, valued at $10,868,303.03. This trade represents a 3.42% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 258,136 shares of company stock worth $28,395,372. Corporate insiders own 5.97% of the company's stock.

Institutional Trading of AXT

A number of large investors have recently made changes to their positions in AXTI. American Capital Advisory LLC bought a new stake in AXT during the 1st quarter valued at about $27,000. Kohmann Bosshard Financial Services LLC bought a new position in AXT in the 1st quarter worth about $31,000. XTX Topco Ltd bought a new position in AXT in the 2nd quarter worth about $42,000. Jefferies Financial Group Inc. purchased a new position in shares of AXT during the third quarter worth approximately $52,000. Finally, Global Retirement Partners LLC purchased a new position in shares of AXT during the second quarter worth approximately $55,000. 49.52% of the stock is owned by hedge funds and other institutional investors.

AXT Company Profile

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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