AXT (NASDAQ:AXTI) Trading Down 9.3% – Should You Sell?

AXT Inc (NASDAQ:AXTI) shares traded down 9.3% during mid-day trading on Tuesday . The stock traded as low as $83.02 and last traded at $83.8340. Approximately 1,974,028 shares were traded during trading, a decline of 81% from the average daily volume of 10,233,282 shares. The stock had previously closed at $92.44.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the stock. Weiss Ratings upgraded shares of AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 27th. Northland Securities set a $125.00 target price on shares of AXT in a report on Wednesday, June 3rd. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $43.80.

AXT Stock Performance

The company has a market cap of $4.58 billion, a PE ratio of -225.58 and a beta of 1.80. The company has a fifty day moving average of $97.80 and a two-hundred day moving average of $54.50.

AXT (NASDAQ:AXTI) last announced its earnings results on Thursday, April 30th. The semiconductor company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.03. The business had revenue of $26.92 million for the quarter, compared to the consensus estimate of $26.22 million. AXT had a negative net margin of 14.69% and a negative return on equity of 5.71%. AXT has set its Q2 2026 guidance at 0.060-0.080 EPS. On average, equities analysts forecast that AXT Inc will post 0.2 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Morris S. Young sold 123,601 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $113.33, for a total value of $14,007,701.33. Following the transaction, the chief executive officer directly owned 2,149,533 shares in the company, valued at approximately $243,606,574.89. This represents a 5.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Jesse Chen sold 6,172 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $115.24, for a total transaction of $711,261.28. Following the completion of the transaction, the director directly owned 50,275 shares in the company, valued at $5,793,691. This represents a 10.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 251,636 shares of company stock worth $27,789,677 over the last quarter. Company insiders own 5.97% of the company’s stock.

Hedge Funds Weigh In On AXT

A number of hedge funds have recently added to or reduced their stakes in AXTI. Assenagon Asset Management S.A. increased its position in shares of AXT by 161.9% during 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 acquiring an additional 930,526 shares during the period. CloudAlpha Capital Management Limited Hong Kong bought a new position in AXT in the fourth quarter worth approximately $22,738,000. Alyeska Investment Group L.P. bought a new position in AXT in the fourth quarter worth approximately $20,187,000. Jane Street Group LLC increased its holdings in AXT by 1,314.6% during the 4th quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company’s stock worth $14,790,000 after purchasing an additional 840,650 shares during the period. Finally, Bank of America Corp DE increased its holdings in AXT by 112.0% during the 1st quarter. Bank of America Corp DE now owns 776,300 shares of the semiconductor company’s stock worth $44,234,000 after purchasing an additional 410,181 shares during the period. 49.52% of the stock is currently owned by 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.