AXT (NASDAQ:AXTI) Shares Break Above 200-Day Moving Average – What’s Next?

Shares of AXT Inc (NASDAQ:AXTI) passed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $63.72 and traded as high as $65.20. AXT shares last traded at $64.38, with a volume of 12,252,578 shares traded.

Key Headlines Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT reported third-quarter adjusted EPS of $0.41, surpassing the $0.31 consensus estimate, while revenue of $73.4 million exceeded expectations of approximately $66 million. Revenue increased 162% year over year, helped by record indium phosphide (InP) sales. AXTI Q3 Earnings Beat on Record InP Sales and Margin Gains
• Positive Sentiment: Management cited strong artificial-intelligence data-center demand, a backlog exceeding $500 million and surging InP requirements. AXT plans aggressive capacity expansion and indicated stronger fourth-quarter expectations, supporting the longer-term growth outlook. AXTI Q3 Earnings Call Highlights AI Demand and Capacity Expansion
• Positive Sentiment: Profitability improved sharply: GAAP gross margin reached approximately 56%, versus 44.9% in the prior quarter and 22.3% a year earlier, while GAAP diluted EPS rose to $0.39 from $0.17. Wedbush also praised AXT’s management following the results. AXT in focus as Wedbush likens management to Jaws hero after strong results
• Neutral Sentiment: B. Riley raised its price target modestly to $56 from $55 but maintained a Neutral rating, indicating limited near-term upside at recent trading levels. B. Riley Financial Ratings
• Negative Sentiment: The decline appears partly driven by profit-taking and risk reduction ahead of earnings after a sharp momentum rally. The stock’s high valuation, semiconductor volatility and sensitivity to export permits and China-related approvals may be prompting investors to lock in gains. AXT Falls as Investors Appear to Take Profits Ahead of Earnings
• Negative Sentiment: Reported insider activity shows 16 open-market sales and no purchases during the past six months, a potential supply and confidence concern for investors.

Analyst Ratings Changes

Several research firms have weighed in on AXTI. Needham & Company LLC upgraded AXT from a “hold” rating to a “buy” rating and set a $90.00 price target on the stock in a research note on Friday, July 31st. B. Riley Financial raised their price objective on AXT from $55.00 to $56.00 and gave the stock a “neutral” rating in a research note on Friday. Weiss Ratings upgraded AXT from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Friday, August 14th. Zacks Research downgraded shares of AXT from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 29th. Finally, UBS Group set a $90.00 price target on shares of AXT in a research report on Friday, July 31st. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $77.80.

AXT Stock Down 9.6%

The firm has a 50-day moving average of $66.26 and a two-hundred day moving average of $64.07. The company has a market capitalization of $3.61 billion, a PE ratio of 122.36 and a beta of 1.86.

AXT (NASDAQ:AXTI) last announced its quarterly earnings results on Thursday, October 29th. The semiconductor company reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.10. AXT had a return on equity of 6.35% and a net margin of 18.53%. The company had revenue of $73.41 million during the quarter, compared to the consensus estimate of $66.00 million. Equities analysts predict that AXT Inc will post 0.80 EPS for the current fiscal year.

Insider Buying and Selling at AXT

In related news, Director Leonard Leblanc sold 4,000 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $96.07, for a total value of $384,280.00. Following the completion of the transaction, the director directly owned 113,129 shares in the company, valued at $10,868,303.03. The trade was a 3.42% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 5.97% of the stock is currently owned by company insiders.

Institutional Trading of AXT

A number of hedge funds have recently added to or reduced their stakes in AXTI. Oregon Public Employees Retirement Fund acquired a new position in shares of AXT during the 3rd quarter worth approximately $1,115,000. BOCHK Asset Management Ltd acquired a new stake in AXT in the 3rd quarter valued at $7,226,000. Profund Advisors LLC purchased a new stake in AXT in the 3rd quarter worth $227,000. ProShare Advisors LLC lifted its holdings in AXT by 6.9% during the third quarter. ProShare Advisors LLC now owns 8,742 shares of the semiconductor company’s stock valued at $677,000 after purchasing an additional 563 shares in the last quarter. Finally, Bosman Wealth Management LLC lifted its holdings in AXT by 42.8% during the third quarter. Bosman Wealth Management LLC now owns 7,409 shares of the semiconductor company’s stock valued at $574,000 after purchasing an additional 2,220 shares in the last quarter. 49.52% of the stock is owned by hedge funds and other institutional investors.

AXT Company Profile

AXT, Inc develops and manufactures compound semiconductor substrates used as the foundation for various high-performance electronic and optoelectronic devices. Its principal products include gallium arsenide (GaAs), indium phosphide (InP), and germanium substrates, along with other specialty materials such as gallium antimonide and indium arsenide.

The company’s substrates are used in applications including wireless communications, fiber-optic and data-center networks, lasers, light-emitting diodes, solar cells, consumer electronics, and aerospace and defense systems.