AXT (NASDAQ:AXTI) Shares Down 5.4% – Should You Sell?

AXT Inc (NASDAQ:AXTI)’s share price dropped 5.4% on Tuesday . The stock traded as low as $132.99 and last traded at $133.23. Approximately 3,997,466 shares traded hands during trading, a decline of 62% from the average daily volume of 10,435,387 shares. The stock had previously closed at $140.83.

Wall Street Analyst Weigh In

AXTI has been the topic of several research analyst reports. UBS Group set a $35.00 price objective on shares of AXT in a research note on Tuesday, February 17th. Wedbush upped their target price 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. B. Riley Financial upped their target price on shares of AXT to $21.00 and gave the stock a “neutral” rating in a research report on Friday, February 20th. Wall Street Zen upgraded shares of AXT from a “sell” rating to a “hold” rating in a research report on Saturday, February 14th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of AXT in a research report on Wednesday, May 13th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, AXT has a consensus rating of “Hold” and an average price target of $22.80.

AXT Trading Down 5.8%

The stock has a market capitalization of $8.68 billion, a P/E ratio of -427.79 and a beta of 1.75. The company has a fifty day simple moving average of $79.35 and a two-hundred day simple moving average of $41.00.

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

Insider Activity at AXT

In related news, Director Jesse Chen sold 15,000 shares of the stock in a transaction that occurred on Wednesday, March 11th. The shares were sold at an average price of $47.13, for a total value of $706,950.00. Following the transaction, the director directly owned 123,612 shares in the company, valued at $5,825,833.56. This represents a 10.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Morris S. Young sold 159,536 shares of the stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $43.32, for a total transaction of $6,911,099.52. Following the completion of the transaction, the chief executive officer owned 2,482,038 shares in the company, valued at $107,521,886.16. This represents a 6.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 502,278 shares of company stock worth $21,196,754 over the last ninety days. Company insiders own 5.97% of the company’s stock.

Hedge Funds Weigh In On AXT

Several large investors have recently bought and sold shares of AXTI. CloudAlpha Capital Management Limited Hong Kong acquired a new position in AXT in the fourth quarter valued at approximately $22,738,000. Alyeska Investment Group L.P. acquired a new position in AXT in the fourth quarter valued at approximately $20,187,000. Assenagon Asset Management S.A. lifted its holdings in 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 valued at $85,775,000 after buying an additional 930,526 shares during the period. Jane Street Group LLC lifted its holdings in AXT by 1,314.6% in the fourth quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company’s stock valued at $14,790,000 after buying an additional 840,650 shares during the period. Finally, Ariose Capital Management Ltd acquired a new position in AXT in the first quarter valued at approximately $39,061,000. 49.52% of the stock is currently owned by institutional investors and hedge funds.

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.