AXT (NASDAQ:AXTI) Shares Down 7.8% – Should You Sell?

Shares of AXT Inc (NASDAQ:AXTI) dropped 7.8% during trading on Friday . The stock traded as low as $48.78 and last traded at $48.79. 805,887 shares changed hands during mid-day trading, a decline of 92% from the average session volume of 10,029,648 shares. The stock had previously closed at $52.93.

Wall Street Analyst Weigh In

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

AXT Trading Down 6.7%

The stock has a market capitalization of $3.23 billion, a PE ratio of -161.22 and a beta of 1.86. The firm has a 50-day moving average price of $84.36 and a 200-day moving average price of $60.96.

AXT (NASDAQ:AXTI) last issued its quarterly earnings results on Thursday, April 30th. The semiconductor company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.03. The company 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. Sell-side analysts expect that AXT Inc will post 0.19 earnings per share for the current fiscal year.

Insider Buying and Selling at AXT

In other news, CEO Morris S. Young sold 123,601 shares of the firm’s 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 completion of the sale, the chief executive officer owned 2,149,533 shares in the company, valued at $243,606,574.89. This trade represents a 5.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Jesse Chen sold 13,000 shares of AXT stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $95.77, for a total transaction of $1,245,010.00. Following the completion of the sale, the director directly owned 56,447 shares in the company, valued at $5,405,929.19. This trade represents a 18.72% 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 three months. 5.97% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AXT

Institutional investors and hedge funds have recently bought and sold shares of the company. Assenagon Asset Management S.A. raised its stake in shares of 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. CloudAlpha Capital Management Limited Hong Kong purchased a new stake in AXT in the 4th quarter worth about $22,738,000. Alyeska Investment Group L.P. bought a new stake in AXT in the 4th quarter valued at about $20,187,000. Jane Street Group LLC raised its stake in AXT by 1,314.6% in the 4th quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company’s stock valued at $14,790,000 after acquiring an additional 840,650 shares during the period. Finally, Bank of America Corp DE lifted its holdings in AXT by 112.0% during the first quarter. Bank of America Corp DE now owns 776,300 shares of the semiconductor company’s stock valued at $44,234,000 after purchasing an additional 410,181 shares during the last quarter. 49.52% of the stock is 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.