AXT Sees Unusually High Options Volume (NASDAQ:AXTI)

AXT Inc (NASDAQ:AXTI) saw unusually large options trading activity on Friday. Investors acquired 43,167 call options on the stock. This represents an increase of approximately 29% compared to the average volume of 33,442 call options.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on AXTI. Needham & Company LLC upgraded shares of AXT from a “hold” rating to a “buy” rating and set a $90.00 price objective on the stock in a research report on Friday. Northland Securities set a $125.00 price target on shares of AXT in a research note on Wednesday, June 3rd. B. Riley Financial cut their price target on shares of AXT from $73.00 to $52.00 and set a “neutral” rating on the stock in a report on Tuesday. UBS Group set a $90.00 price objective on shares of AXT in a research report on Friday. Finally, Weiss Ratings upgraded AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 27th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $77.00.

Key AXT News

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT reported second-quarter revenue of approximately $47.6 million, up 164.8% year over year and ahead of consensus estimates near $34 million. Adjusted earnings were $0.19 per share versus expectations of $0.07, compared with a $0.15 per-share loss a year earlier. AXT Second-Quarter 2026 Financial Results
• Positive Sentiment: Record indium phosphide (InP) demand was a key growth driver, with management citing rising requirements for AI data-center connectivity and improved productivity. Gross profit reached about $21.4 million, while operating profit was approximately $10.4 million, signaling a significant profitability improvement. AXTI Q2 Earnings Beat
• Positive Sentiment: AXT’s third-quarter outlook was well above analyst expectations: EPS guidance of $0.30 to $0.32 versus consensus of $0.10, and revenue guidance of approximately $66 million versus estimates near $38.7 million. The outlook suggests that demand momentum may continue into the next quarter.
• Positive Sentiment: Management outlined capacity-expansion plans to support higher InP output and improve margins as AI-related optical demand grows. A newly announced long-term supply and capacity-reservation agreement with Lumentum also provides additional visibility for future InP demand. AXT Lumentum Supplier Agreement
• Positive Sentiment: Needham upgraded AXTI from “Hold” to “Buy” and set a $90 price target, adding analyst support after the earnings release. Wedbush also reportedly sees continued strength in the company’s optical business.
• Neutral Sentiment: AXT ended the quarter with approximately $445.2 million in cash and equivalents, but reported cash use from operations and continues to face execution requirements associated with its planned capacity expansion.
• Negative Sentiment: Recent disclosed insider activity showed selling rather than buying by several executives and directors. Separately, B. Riley previously maintained a more pessimistic view of the stock, highlighting valuation and potential volatility risks after the sharp rally.

Insider Activity at AXT

In other news, CEO Morris S. Young sold 123,601 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $113.33, for a total transaction of $14,007,701.33. Following the sale, the chief executive officer directly owned 2,149,533 shares in the company, valued at approximately $243,606,574.89. This represents a 5.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Jesse Chen sold 6,172 shares of AXT stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $115.24, for a total value of $711,261.28. Following the completion of the transaction, the director owned 50,275 shares of the company’s stock, valued at approximately $5,793,691. This trade represents a 10.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 251,636 shares of company stock valued at $27,789,677 over the last 90 days. 5.97% of the stock is owned by corporate insiders.

Institutional Trading of AXT

A number of hedge funds have recently added to or reduced their stakes in the business. CloudAlpha Capital Management Limited Hong Kong purchased a new stake in shares of AXT in the 4th quarter worth approximately $22,738,000. Maytree Asset Management Ltd purchased a new position in shares of AXT in the 4th quarter valued at $11,156,000. Allworth Financial LP lifted its stake in shares of AXT by 3,764.7% during the 4th quarter. Allworth Financial LP now owns 11,594 shares of the semiconductor company’s stock worth $190,000 after purchasing an additional 11,294 shares during the last quarter. Nano Cap New Millennium Growth Fund L P purchased a new stake in shares of AXT during the 4th quarter worth $1,014,000. Finally, Rokos Capital Management LLP bought a new stake in AXT during the first quarter valued at about $18,842,000. 49.52% of the stock is owned by hedge funds and other institutional investors.

AXT Price Performance

Shares of NASDAQ:AXTI traded up $13.65 during trading on Friday, reaching $60.59. 24,837,355 shares of the company were exchanged, compared to its average volume of 10,168,362. The business’s fifty day simple moving average is $77.44 and its 200-day simple moving average is $61.74. AXT has a 12-month low of $1.85 and a 12-month high of $143.16. The firm has a market capitalization of $3.96 billion, a PE ratio of -195.15 and a beta of 1.86.

AXT (NASDAQ:AXTI) last announced its quarterly earnings results on Thursday, July 30th. The semiconductor company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.12. AXT had a negative return on equity of 5.71% and a negative net margin of 14.69%.The firm had revenue of $47.59 million during the quarter, compared to analyst estimates of $34.08 million. AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. On average, sell-side analysts anticipate that AXT will post 0.19 EPS for the current fiscal year.

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.