AXT (NASDAQ:AXTI) Trading 13.5% Higher – Still a Buy?

Shares of AXT Inc (NASDAQ:AXTI) traded up 13.5% during mid-day trading on Monday . The company traded as high as $37.20 and last traded at $36.74. 3,895,277 shares traded hands during trading, a decline of 52% from the average session volume of 8,087,968 shares. The stock had previously closed at $32.37.

AXT News Roundup

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Buyers are leaning into an AI infrastructure growth narrative that analysts say could lift long‑term demand for AXT’s semiconductor substrates and wafers, supporting a higher valuation multiple and momentum in the name. Assessing AXT (AXTI) Valuation
• Positive Sentiment: Unusual options activity: traders bought ~14,442 call options (≈171% above typical daily call volume), indicating short‑term bullish/speculative positioning that can amplify upside. (market data entry)
• Positive Sentiment: Momentum/rebound trade: AXT rallied sharply after recent losses as bargain hunters and momentum traders piled back in, helping lift the stock for a second straight session. AXT Climbs 14.9%
• Neutral Sentiment: Reported short interest figures in recent data appear anomalous/zero and provide no clear signal (likely a reporting quirk), so short-covering is not confirmed as a driver. (market data entry)
• Negative Sentiment: Large insider selling: CEO Morris S. Young sold 125,893 shares (≈$4.6M) on Mar 9 and previously sold smaller lots; Director Jesse Chen also sold multiple tranches (totaling tens of thousands of shares). Significant insider sell volume can be read as a negative signal by investors. CEO Sale SEC Filing Director Sale SEC Filing
• Negative Sentiment: Q4 / FY2025 results were mixed: revenue fell to $23.0M (down QoQ and YoY) and GAAP gross margin dipped to ~20.9%, reinforcing near‑term execution concerns versus the AI-led optimism. That weakness tempers the bullish narrative until visibility improves. AXT Reports Q4 & FY2025 Results AXT Q4 Summary
• Negative Sentiment: TipRanks and other outlets highlighted a recent director sale as a notable insider move, which can increase investor wariness even as the stock rallies. TipRanks Insider Move

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. UBS Group set a $35.00 target price on AXT in a report on Tuesday, February 17th. Wall Street Zen raised shares of AXT from a “sell” rating to a “hold” rating in a report on Saturday, February 14th. Northland Securities set a $20.00 price target on shares of AXT in a research report on Monday, December 22nd. Needham & Company LLC cut shares of AXT from a “buy” rating to a “hold” rating in a report on Tuesday, January 20th. Finally, Craig Hallum reaffirmed a “buy” rating on shares of AXT in a research report on Friday, January 9th. Two analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $22.80.

AXT Stock Performance

The stock has a market cap of $2.45 billion, a P/E ratio of -92.29 and a beta of 1.75. The business has a 50 day simple moving average of $25.51 and a 200-day simple moving average of $14.10.

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

Insiders Place Their Bets

In other AXT news, CEO Morris S. Young sold 125,893 shares of the business’s stock in a transaction dated Monday, March 9th. The shares were sold at an average price of $36.51, for a total value of $4,596,353.43. Following the transaction, the chief executive officer directly owned 2,344,065 shares in the company, valued at $85,581,813.15. The trade was a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jesse Chen sold 12,452 shares of the stock in a transaction that occurred on Monday, March 9th. The shares were sold at an average price of $37.69, for a total transaction of $469,315.88. Following the transaction, the director directly owned 152,612 shares of the company’s stock, valued at $5,751,946.28. This represents a 7.54% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 370,455 shares of company stock valued at $14,879,664. Company insiders own 8.80% of the company’s stock.

Hedge Funds Weigh In On AXT

Several institutional investors and hedge funds have recently bought and sold shares of AXTI. CloudAlpha Capital Management Limited Hong Kong purchased a new stake in AXT in the fourth quarter worth $22,738,000. Alyeska Investment Group L.P. bought a new position in shares of AXT during the 4th quarter worth $20,187,000. Jane Street Group LLC grew its stake in shares of AXT by 1,314.6% during the 4th quarter. Jane Street Group LLC now owns 904,599 shares of the semiconductor company’s stock worth $14,790,000 after acquiring an additional 840,650 shares during the period. White Pine Capital LLC increased its holdings in AXT by 2.8% in the 2nd quarter. White Pine Capital LLC now owns 860,411 shares of the semiconductor company’s stock worth $1,798,000 after acquiring an additional 23,467 shares during the last quarter. Finally, Maytree Asset Management Ltd purchased a new stake in AXT in the 4th quarter worth about $11,156,000. 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.