AXT (NASDAQ:AXTI) Shares Down 12.8% – Should You Sell?

Shares of AXT Inc (NASDAQ:AXTI) traded down 12.8% during mid-day trading on Wednesday . The company traded as low as $95.10 and last traded at $93.8140. 4,032,562 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 10,468,648 shares. The stock had previously closed at $107.55.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AXTI. Wedbush raised their price target on AXT from $8.50 to $28.00 and gave the stock an “outperform” rating in a research report on Friday, February 20th. Needham & Company LLC lowered AXT from a “buy” rating to a “hold” rating in a research report on Tuesday, January 20th. Craig Hallum reaffirmed a “buy” rating on shares of AXT in a research note on Friday, January 9th. Wall Street Zen raised shares of AXT from a “sell” rating to a “hold” rating in a research note on Saturday, February 14th. Finally, UBS Group set a $35.00 target price on shares of AXT in a research note on Tuesday, February 17th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $22.80.

AXT Stock Performance

The stock has a market cap of $7.61 billion, a price-to-earnings ratio of -375.34 and a beta of 1.75. The company has a 50-day simple moving average of $60.14 and a two-hundred day simple moving average of $31.33.

AXT (NASDAQ:AXTI) last announced its quarterly earnings data on Thursday, April 30th. The semiconductor company reported ($0.01) EPS for the quarter, beating analysts’ consensus estimates of ($0.04) by $0.03. The company had revenue of $26.92 million during 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 6.11%. AXT has set its Q2 2026 guidance at 0.060-0.080 EPS. As a group, sell-side analysts predict that AXT Inc will post -0.01 earnings per share for the current fiscal year.

Insider Activity

In other AXT news, Director David C. Chang sold 20,000 shares of the firm’s stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $46.00, for a total transaction of $920,000.00. Following the completion of the sale, the director owned 72,744 shares of the company’s stock, valued at $3,346,224. This trade represents a 21.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Jesse Chen sold 8,083 shares of AXT stock in a transaction on Friday, March 13th. The stock was sold at an average price of $50.25, for a total transaction of $406,170.75. Following the transaction, the director directly owned 109,526 shares of the company’s stock, valued at approximately $5,503,681.50. This trade represents a 6.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 502,278 shares of company stock valued at $21,196,754 over the last three months. Insiders own 5.97% of the company’s stock.

Institutional Trading of AXT

Several hedge funds and other institutional investors have recently modified their holdings of AXTI. Acadian Asset Management LLC raised its holdings in AXT by 2.8% in the 1st quarter. Acadian Asset Management LLC now owns 293,818 shares of the semiconductor company’s stock valued at $412,000 after acquiring an additional 8,039 shares during the period. Creative Planning acquired a new position in shares of AXT in the second quarter valued at approximately $86,000. XTX Topco Ltd bought a new position in shares of AXT during the second quarter worth approximately $42,000. Wesbanco Bank Inc. acquired a new stake in AXT during the 3rd quarter worth approximately $112,000. Finally, Dimensional Fund Advisors LP bought a new stake in AXT in the 3rd quarter valued at $145,000. 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.