AXT (NASDAQ:AXTI) Trading Down 9.2% on Insider Selling

AXT Inc (NASDAQ:AXTI)’s share price dropped 9.2% on Wednesday after an insider sold shares in the company. The stock traded as low as $76.05 and last traded at $74.7140. 4,792,425 shares traded hands during mid-day trading, a decline of 54% from the average daily volume of 10,461,904 shares. The stock had previously closed at $82.31.

Specifically, Director Leonard J. Leblanc sold 4,000 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $96.07, for a total transaction of $384,280.00. Following the completion of the sale, the director directly owned 113,129 shares in the company, valued at $10,868,303.03. This represents a 3.42% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Leonard J. Leblanc sold 2,000 shares of the stock in a transaction on Friday, August 7th. The stock was sold at an average price of $88.31, for a total value of $176,620.00. Following the completion of the transaction, the director directly owned 117,129 shares in the company, valued at $10,343,661.99. This trade represents a 1.68% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In related news, Director Leonard J. Leblanc sold 500 shares of AXT stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $89.59, for a total value of $44,795.00. Following the transaction, the director owned 119,129 shares in the company, valued at approximately $10,672,767.11. This trade represents a 0.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Ratings Changes

Several equities research analysts have commented on AXTI shares. Weiss Ratings upgraded AXT from a “sell (d-)” rating to a “sell (d+)” rating in a research note on Friday, August 14th. UBS Group set a $90.00 price objective on AXT in a research note on Friday, July 31st. Northland Securities set a $125.00 target price on AXT in a report on Wednesday, June 3rd. B. Riley Financial decreased their target price on AXT from $73.00 to $52.00 and set a “neutral” rating for the company in a report on Tuesday, July 28th. Finally, Needham & Company LLC raised shares of AXT from a “hold” rating to a “buy” rating and set a $90.00 target price for the company in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, AXT currently has a consensus rating of “Moderate Buy” and an average target price of $77.00.

More AXT News

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT’s indium phosphide (InP) business is showing strong momentum, with record revenue, a backlog exceeding $100 million and planned capacity expansion. Demand from AI data centers and optical networking could provide a multiyear growth opportunity. AXT’s InP Demand Is Surging: Can It Become a Long-Term Growth Driver?
• Positive Sentiment: Reports that indium phosphide supply is tightening, alongside new AI-related deals, have supported the bullish view that AXT may benefit from rising demand for optical components used in high-speed data centers. Why AXT Is Up 11.6% After Indium Phosphide Supply Tightens Amid New AI Deals
• Neutral Sentiment: AXT’s latest quarterly results were materially better than expected, with earnings per share of $0.19 versus a $0.07 consensus estimate and revenue of $47.59 million versus $34.08 million. Management guided to third-quarter 2026 EPS of $0.30-$0.32, though the stock’s exceptionally high valuation leaves limited room for disappointment.
• Neutral Sentiment: Analyst opinion remains mixed but leans positive: AXT has a consensus “Moderate Buy” rating and an average price target of $77, while price targets range from $52 to $125. A Tradr ETF including AXT could improve visibility and investor access, but its direct fundamental impact is uncertain.
• Negative Sentiment: AXTI has faced a broader selloff in optics and AI-hardware shares as investors reassess the pace of AI spending and lock in gains after the sector’s major rally. This risk-off environment is currently outweighing the company’s favorable InP outlook. Optics Stocks Drop on Anthropic News
• Negative Sentiment: Director Leonard Leblanc has repeatedly reduced his stake, selling 4,000 shares on August 17 for about $384,280, 2,000 shares on August 7 and 500 shares in June. Although he still owns more than 113,000 shares, the pattern may weigh modestly on investor sentiment. Insider Selling: AXT Director Sells Shares

AXT Stock Performance

The firm has a fifty day moving average of $67.75 and a 200-day moving average of $67.64. The stock has a market capitalization of $4.79 billion, a price-to-earnings ratio of 3,656.00 and a beta of 1.90.

AXT (NASDAQ:AXTI) last issued its quarterly earnings data on Thursday, July 30th. The semiconductor company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.12. AXT had a return on equity of 0.96% and a net margin of 3.23%.The company had revenue of $47.59 million for the quarter, compared to analysts’ expectations of $34.08 million. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. On average, analysts predict that AXT Inc will post 0.8 EPS for the current year.

Hedge Funds Weigh In On AXT

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Teza Capital Management LLC purchased a new position in AXT in the 2nd quarter worth approximately $352,000. Two Sigma Securities LLC purchased a new stake in shares of AXT during the second quarter valued at approximately $212,000. GTS Securities LLC purchased a new stake in shares of AXT during the second quarter valued at approximately $991,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of AXT by 11.7% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 85,925 shares of the semiconductor company’s stock worth $6,193,000 after purchasing an additional 9,032 shares in the last quarter. Finally, Wellington Management Group LLP purchased a new position in shares of AXT in the second quarter valued at $25,911,000. 49.52% of the stock is 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.