AXT (NASDAQ:AXTI) Trading Down 5% - Here's Why

Key Points

• AXT shares fell about 5% to roughly $63.56 in Friday’s mid-day trading, with volume significantly below its average. The stock remains below its 200-day moving average of $69.28.
• Analyst sentiment is broadly positive: AXT has a consensus rating of “Moderate Buy” and an average price target of $77, with recent targets ranging from $90 to $125.
• The company beat quarterly expectations, reporting $0.19 in EPS versus $0.07 expected and revenue of $47.59 million versus $34.08 million forecast. However, insiders sold approximately 258,136 shares worth $28.4 million over the past three months.

AXT Inc (NASDAQ:AXTI - Get Free Report)'s share price traded down 5% during mid-day trading on Friday . The company traded as low as $63.38 and last traded at $63.56. Approximately 752,006 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 10,365,939 shares. The stock had previously closed at $66.92.

Wall Street Analysts Forecast Growth

AXTI has been the topic of several recent analyst reports. UBS Group set a $90.00 price objective on AXT in a research note on Friday, July 31st. Needham & Company LLC upgraded shares of AXT from a "hold" rating to a "buy" rating and set a $90.00 target price on the stock in a research note on Friday, July 31st. Northland Securities set a $125.00 price target on shares of AXT in a research note on Wednesday, June 3rd. Zacks Research upgraded AXT from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 11th. Finally, Weiss Ratings upgraded 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 assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $77.00.

AXT Trading Down 9.1%

The stock's fifty day moving average is $64.91 and its two-hundred day moving average is $69.28. The firm has a market cap of $3.99 billion, a P/E ratio of 3,042.00 and a beta of 1.90.

AXT (NASDAQ:AXTI - Get Free Report) last posted its 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. AXT had a return on equity of 0.96% and a net margin of 3.23%.The business had revenue of $47.59 million during the quarter, compared to analysts' expectations 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 EPS for the current year.

Insider Buying and Selling at AXT

In related news, Director Jesse Chen sold 6,172 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $115.24, for a total transaction of $711,261.28. Following the sale, the director directly owned 50,275 shares of the company's stock, valued at $5,793,691. This trade represents a 10.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director David C. Chang sold 8,333 shares of the company'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 directly owned 65,165 shares of the company's stock, valued at $7,244,393.05. This represents a 11.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 258,136 shares of company stock worth $28,395,372. Insiders own 5.97% of the company's stock.

Hedge Funds Weigh In On AXT

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new position in AXT during the 2nd quarter valued at about $365,607,000. California State Teachers Retirement System raised its position in shares of AXT by 7,385.7% in the 2nd quarter. California State Teachers Retirement System now owns 4,821,215 shares of the semiconductor company's stock valued at $347,513,000 after purchasing an additional 4,756,809 shares during the last quarter. CloudAlpha Capital Management Limited Hong Kong purchased a new stake in AXT during the 4th quarter worth approximately $22,738,000. Alyeska Investment Group L.P. acquired a new position in AXT during the 4th quarter valued at approximately $20,187,000. Finally, Assenagon Asset Management S.A. raised its holdings in shares of AXT by 161.9% in the first quarter. Assenagon Asset Management S.A. now owns 1,505,354 shares of the semiconductor company's stock worth $85,775,000 after buying an additional 930,526 shares during the last quarter. Hedge funds and other institutional investors own 49.52% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source