AXT (NASDAQ:AXTI) Stock Price Down 14.6% Following Insider Selling

AXT Inc (NASDAQ:AXTI) fell 14.6% during trading on Friday following insider selling activity. The stock traded as low as $91.03 and last traded at $90.5170. 4,754,377 shares were traded during trading, a decline of 54% from the average session volume of 10,294,738 shares. The stock had previously closed at $105.99.

Specifically, Director Jesse Chen sold 6,133 shares of the stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $108.28, for a total transaction of $664,081.24. Following the transaction, the director owned 94,193 shares in the company, valued at $10,199,218.04. This represents a 6.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jesse Chen sold 4,000 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $111.36, for a total transaction of $445,440.00. Following the transaction, the director owned 100,326 shares in the company, valued at approximately $11,172,303.36. This trade represents a 3.83% decrease in their position. The disclosure for this sale is available in the SEC filing. In related news, CEO Morris S. Young sold 123,601 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $113.33, for a total transaction of $14,007,701.33. Following the transaction, the chief executive officer owned 2,149,533 shares in the company, valued at $243,606,574.89. This represents a 5.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Wall Street Analysts Forecast Growth

AXTI has been the topic of several recent research reports. Northland Securities set a $125.00 price target on shares of AXT in a research report on Wednesday. Wedbush increased their price target on shares of AXT from $8.50 to $28.00 and gave the stock an “outperform” rating in a research report on Friday, February 20th. UBS Group set a $35.00 price target on shares of AXT in a research report on Tuesday, February 17th. Weiss Ratings upgraded shares of AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 27th. Finally, Wall Street Zen upgraded shares of AXT from a “sell” rating to a “hold” rating in a research report on Saturday, February 14th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $43.80.

AXT News Summary

Here are the key news stories impacting AXT this week:

• Negative Sentiment: CEO Morris Young and Director Jesse Chen disclosed multiple stock sales over the past few days, including large transactions that trimmed their ownership stakes. Heavy insider selling can weigh on sentiment because it may signal that management views the shares as fully valued or prefers to reduce exposure at current levels. SEC filing for Jesse Chen sale
• Negative Sentiment: Traders bought 42,750 put options, about 58% above normal daily volume, suggesting a notable increase in bearish bets or hedging activity on AXT shares.
• Neutral Sentiment: Recent commentary highlighted AXT’s order backlog topping $100 million and management’s plan to double capacity in 2026 and again in 2027, reflecting strong AI-related demand for indium phosphide substrates. Article: AXT’s Order Backlog Surge & Capacity Push Fuel Growth Expectations
• Neutral Sentiment: The company’s latest earnings beat expectations modestly and Q2 guidance called for adjusted EPS of $0.06 to $0.08, but the business remains unprofitable on a net basis, which keeps the stock sensitive to execution and margin concerns.

AXT Stock Performance

The stock’s fifty day moving average is $89.22 and its 200 day moving average is $47.12. The stock has a market cap of $5.82 billion, a P/E ratio of -287.22 and a beta of 1.80.

AXT (NASDAQ:AXTI) last released its quarterly earnings results on Thursday, April 30th. The semiconductor company reported ($0.01) EPS for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. AXT had a negative net margin of 14.69% and a negative return on equity of 5.71%. The firm had revenue of $26.92 million during the quarter, compared to analysts’ expectations of $26.22 million. AXT has set its Q2 2026 guidance at 0.060-0.080 EPS. Equities research analysts predict that AXT Inc will post 0.2 EPS for the current year.

Institutional Investors Weigh In On AXT

Large investors have recently added to or reduced their stakes in the stock. American Capital Advisory LLC purchased a new stake in AXT in the 1st quarter valued at about $27,000. Kohmann Bosshard Financial Services LLC purchased a new stake in AXT in the 1st quarter valued at about $31,000. Leonteq Securities AG purchased a new stake in AXT in the 1st quarter valued at about $57,000. KBC Group NV purchased a new stake in AXT in the 1st quarter valued at about $88,000. Finally, SG Americas Securities LLC purchased a new stake in AXT in the 1st quarter valued at about $108,000. 49.52% of the stock is owned by hedge funds and other institutional investors.

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.