Stock Traders Buy Large Volume of Call Options on AXT (NASDAQ:AXTI)

Key Points

• Unusually large options activity — investors bought 14,442 call options on AXT (a 171% increase vs. average), and the stock rallied $6.47 to $45.03 on Tuesday.
• Insider selling has been heavy: directors Jesse Chen and David C. Chang sold sizable stakes (11,320 and 20,000 shares respectively) and insiders dumped 221,810 shares worth $9.41M in the quarter, leaving insiders owning 8.8% of the company.
• AXT missed quarterly EPS expectations (‑$0.05 vs. ‑$0.04) and shows negative margins and ROE, while analysts hold a consensus rating of "Hold" with an average price target of $22.80.

AXT Inc (NASDAQ:AXTI - Get Free Report) saw unusually large options trading activity on Tuesday. Stock investors purchased 14,442 call options on the stock. This represents an increase of 171% compared to the average volume of 5,324 call options.

Insider Buying and Selling at AXT

In other AXT news, Director Jesse Chen sold 11,320 shares of AXT stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $45.59, for a total value of $516,078.80. Following the transaction, the director owned 198,018 shares in the company, valued at $9,027,640.62. The trade was a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David C. Chang sold 20,000 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $38.53, for a total transaction of $770,600.00. Following the transaction, the director owned 112,744 shares of the company's stock, valued at approximately $4,344,026.32. This trade represents a 15.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 221,810 shares of company stock valued at $9,411,640. Company insiders own 8.80% of the company's stock.

Institutional Trading of AXT

Several hedge funds have recently made changes to their positions in the company. Assenagon Asset Management S.A. lifted its stake in AXT by 12.4% in the third quarter. Assenagon Asset Management S.A. now owns 22,952 shares of the semiconductor company's stock worth $103,000 after acquiring an additional 2,540 shares during the last quarter. Jefferies Financial Group Inc. raised its holdings in shares of AXT by 30.1% in the 4th quarter. Jefferies Financial Group Inc. now owns 14,967 shares of the semiconductor company's stock valued at $245,000 after purchasing an additional 3,467 shares in the last quarter. State of Wyoming purchased a new stake in shares of AXT during the 4th quarter worth $69,000. Kestra Advisory Services LLC acquired a new position in shares of AXT during the fourth quarter worth $98,000. Finally, Algert Global LLC grew its stake in shares of AXT by 31.9% during the third quarter. Algert Global LLC now owns 28,800 shares of the semiconductor company's stock worth $129,000 after purchasing an additional 6,970 shares in the last quarter. Hedge funds and other institutional investors own 49.52% of the company's stock.

AXT Price Performance

NASDAQ AXTI traded up $6.47 during trading hours on Tuesday, reaching $45.03. The company's stock had a trading volume of 7,399,325 shares, compared to its average volume of 8,196,521. The firm has a market capitalization of $2.49 billion, a price-to-earnings ratio of -93.82 and a beta of 1.74. The company's 50-day moving average is $24.94 and its two-hundred day moving average is $13.81. AXT has a 1-year low of $1.13 and a 1-year high of $47.03.

AXT (NASDAQ:AXTI - Get Free Report) last announced its earnings results on Thursday, February 19th. The semiconductor company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). AXT had a negative net margin of 24.07% and a negative return on equity of 10.59%. The company had revenue of $23.04 million during the quarter, compared to analyst estimates of $24.24 million. Equities analysts forecast that AXT will post -0.12 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on AXTI shares. UBS Group set a $35.00 price objective on shares of AXT in a report on Tuesday, February 17th. B. Riley Financial lifted their price target on AXT to $21.00 and gave the stock a "neutral" rating in a research report on Friday, February 20th. Wall Street Zen raised AXT from a "sell" rating to a "hold" rating in a report on Saturday, February 14th. Craig Hallum reaffirmed a "buy" rating on shares of AXT in a report on Friday, January 9th. Finally, Needham & Company LLC lowered AXT from a "buy" rating to a "hold" rating in a research report on Tuesday, January 20th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $22.80.

About AXT

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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