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

AXT Inc (NASDAQ:AXTI)’s share price gapped down before the market opened on Friday after an insider sold shares in the company. 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 changing hands.

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

Wall Street Analyst Weigh In

A number of analysts have weighed in on AXTI shares. Needham & Company LLC cut shares of AXT from a “buy” rating to a “hold” rating in a report on Tuesday, January 20th. B. Riley Financial boosted their price objective on shares of AXT to $21.00 and gave the company a “neutral” rating in a research report on Friday, February 20th. UBS Group set a $35.00 target price on shares of AXT in a report on Tuesday, February 17th. Wall Street Zen raised AXT from a “sell” rating to a “hold” rating in a report on Saturday, February 14th. Finally, Northland Securities set a $20.00 price target on AXT in a research report on Monday, December 22nd. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $22.80.

Key AXT News

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Institutional buys in Q4 (e.g., Davidson Kempner, Point72, others) suggest some durable demand and longer‑term backing for the stock; this can help support the share price over time.
• Positive Sentiment: Recent bullish commentary highlights AXT as a semiconductor‑equipment/compound‑semiconductor play, which may attract sector investors given secular demand for GaAs/InP/GaN substrates. InsiderMonkey article
• Neutral Sentiment: Analyst coverage is mixed — a handful of buy/hold/ sell ratings and an average consensus target below recent trading — creating an ambiguous catalyst for direction.
• Neutral Sentiment: Reported short‑interest data feeds are inconsistent/zero in recent reports, so there’s no clear short‑interest narrative (squeeze or buildup) driving today’s move.
• Negative Sentiment: Large insider sales: CEO Morris Young sold 159,536 shares (~$6.9M at reported average) and multiple directors (including Jesse Chen and David C. Chang) sold sizeable blocks this week — a strong negative sentiment signal likely intensifying near‑term selling pressure. SEC filing: CEO sale SEC filing
• Negative Sentiment: Q4 FY2025 results showed revenue of ~$23.0M (below some estimates) and an EPS miss; the company remains unprofitable with negative net margins — fundamentals that can weigh on sentiment until growth/profitability improves.
• Negative Sentiment: Aggregate insider activity in recent weeks is net selling with few reported buys, a governance/sentiment headwind that often prompts short‑term outflows. TipRanks coverage

AXT Stock Down 2.0%

The firm has a market capitalization of $2.10 billion, a price-to-earnings ratio of -79.17 and a beta of 1.75. The company has a 50-day moving average price of $24.12 and a 200-day moving average price of $13.19.

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

Hedge Funds Weigh In On AXT

A number of institutional investors and hedge funds have recently bought and sold shares of AXTI. State of Wyoming acquired a new position in AXT during the 4th quarter valued at about $69,000. Kestra Advisory Services LLC acquired a new position in shares of AXT during the fourth quarter valued at approximately $98,000. Oasis Management Co Ltd. bought a new stake in AXT during the fourth quarter worth approximately $164,000. Osaic Holdings Inc. raised its holdings in AXT by 1,071.5% during the fourth quarter. Osaic Holdings Inc. now owns 11,012 shares of the semiconductor company’s stock worth $180,000 after purchasing an additional 10,072 shares in the last quarter. Finally, Jefferies Financial Group Inc. acquired a new stake in AXT in the third quarter worth approximately $52,000. Institutional investors own 49.52% of the company’s stock.

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.