AXT (NASDAQ:AXTI) Shares Gap Down After Insider Selling

Shares of AXT Inc (NASDAQ:AXTI) gapped down before the market opened on Friday following insider selling activity. The stock had previously closed at $38.79, but opened at $36.50. AXT shares last traded at $39.39, with a volume of 2,366,468 shares traded.

Specifically, Director Jesse Chen sold 11,147 shares of the firm’s stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $38.26, for a total value of $426,484.22. Following the sale, the director owned 167,064 shares in the company, valued at $6,391,868.64. This trade represents a 6.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Jesse Chen sold 8,800 shares of the company’s stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $38.83, for a total value of $341,704.00. Following the completion of the sale, the director owned 178,211 shares in the company, valued at $6,919,933.13. This trade represents a 4.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In other news, Director David C. Chang sold 20,000 shares of the firm’s stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $38.53, for a total transaction of $770,600.00. Following the completion of the transaction, the director directly owned 112,744 shares in the company, valued at $4,344,026.32. This trade represents a 15.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Analyst Upgrades and Downgrades

AXTI has been the subject of several recent analyst reports. Needham & Company LLC downgraded shares of AXT from a “buy” rating to a “hold” rating in a research report on Tuesday, January 20th. B. Riley Financial raised their price objective on shares of AXT to $21.00 and gave the company a “neutral” rating in a research note on Friday, February 20th. Wedbush lifted 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. Northland Securities set a $20.00 price target on AXT in a research note on Monday, December 22nd. Finally, Wall Street Zen raised shares of AXT from a “sell” rating to a “hold” rating in a report on Saturday, February 14th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, AXT currently has an average rating of “Hold” and a consensus target price of $22.80.

Key Stories Impacting AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Major institutional investors built sizable Q4 positions (e.g., Davidson Kempner, Point72, Jane Street, CloudAlpha, Alyeska), which provides underlying demand and longer‑term support for the stock.
• Positive Sentiment: Street commentary highlights AXT’s exposure to compound‑semiconductor substrates (GaAs/InP/GaN), a secular area in RF/wireless and optoelectronics that can attract growth‑oriented sector buyers. Read More.
• Neutral Sentiment: Analyst coverage is mixed (buy/hold/sell split) and the consensus price target sits below recent trading, so analyst notes are unlikely to be an immediate directional catalyst. Read More.
• Neutral Sentiment: Public short‑interest data appears inconsistent/zero in feeds, so there’s no clear short‑squeeze explanation for today’s move; technical momentum has been strong but may be decelerating. Read More.
• Negative Sentiment: Significant insider selling this week: CEO Morris Young sold ~159,536 shares (~$6.9M at reported averages) and directors Jesse Chen and David C. Chang sold large blocks across multiple days — a strong near‑term negative that likely increased selling pressure. Read More. • Read More.
• Negative Sentiment: Q4 FY2025 results missed revenue and EPS expectations (revenue ≈ $23.0M; EPS miss), and the company remains unprofitable with negative margins — fundamentals that justify caution until revenue/profitability trends improve. Read More.
• Negative Sentiment: Net insider activity in recent weeks is heavily skewed to selling with few reported buys, a governance/sentiment headwind that likely exacerbated short‑term outflows and contributed to today’s decline. Read More.

AXT Stock Performance

The company has a market capitalization of $1.79 billion, a PE ratio of -67.44 and a beta of 1.75. The company’s 50-day moving average is $24.46 and its 200 day moving average is $13.40.

AXT (NASDAQ:AXTI) last released its quarterly earnings data on Thursday, February 19th. The semiconductor company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). The business had revenue of $23.04 million during the quarter, compared to the consensus estimate of $24.24 million. AXT had a negative net margin of 24.07% and a negative return on equity of 10.59%. On average, analysts forecast that AXT Inc will post -0.12 EPS for the current fiscal year.

Institutional Investors Weigh In On AXT

Several hedge funds have recently made changes to their positions in the company. CloudAlpha Capital Management Limited Hong Kong acquired a new stake in AXT during the 4th quarter worth about $22,738,000. Alyeska Investment Group L.P. purchased a new position in AXT in the 4th quarter valued at about $20,187,000. Jane Street Group LLC boosted its holdings 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 worth $14,790,000 after buying an additional 840,650 shares during the last quarter. Maytree Asset Management Ltd purchased a new stake in AXT during the 4th quarter worth approximately $11,156,000. Finally, Assenagon Asset Management S.A. raised its holdings in shares of AXT by 2,404.5% during the fourth quarter. Assenagon Asset Management S.A. now owns 574,828 shares of the semiconductor company’s stock valued at $9,398,000 after acquiring an additional 551,876 shares during the last quarter. 49.52% of the stock is currently owned by hedge funds and other institutional investors.

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.