AXT (NASDAQ:AXTI) Shares Gap Down – What’s Next?

AXT Inc (NASDAQ:AXTI) gapped down before the market opened on Tuesday . The stock had previously closed at $78.76, but opened at $73.29. AXT shares last traded at $74.6940, with a volume of 9,264,822 shares changing hands.

Trending Headlines about AXT

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Raised proceeds are earmarked to expand indium phosphide production capacity in Beijing — a strategic investment that could support longer?term revenue growth in photonics/laser markets. AXT (AXTI) Stock Tumbles 12% Following $550M Share Offering Announcement
• Neutral Sentiment: The offering was priced at $64.25 per share for 8,560,311 shares, with an underwriter option to purchase up to 1,284,046 additional shares — factual deal terms that determine dilution and proceeds. AXT Stock Slides As $550 Million Share Sale Raises Dilution Concerns
• Negative Sentiment: Market reaction is negative: the sizable offering raises near?term dilution concerns and prompted an immediate share selloff (large premarket/after?hours moves and heavy trading). The company also recently missed quarterly EPS and revenue estimates and reports negative margins/ROE, which amplifies investor worry about near?term profitability. AXT stock tumbles 9% on public offering announcement

Analysts Set New Price Targets

A number of brokerages have recently weighed in on AXTI. Craig Hallum restated a “buy” rating on shares of AXT in a research note on Friday, January 9th. Northland Securities set a $20.00 price objective on AXT in a research report on Monday, December 22nd. Wall Street Zen upgraded AXT from a “sell” rating to a “hold” rating in a research report on Saturday, February 14th. B. Riley Financial lifted their price objective on AXT to $21.00 and gave the stock a “neutral” rating in a research report on Friday, February 20th. Finally, UBS Group set a $35.00 price objective on AXT in a research report on Tuesday, February 17th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, AXT presently has a consensus rating of “Hold” and an average target price of $22.80.

AXT Trading Down 2.1%

The firm has a market cap of $4.29 billion, a P/E ratio of -161.07 and a beta of 1.51. The company has a fifty day moving average price of $47.43 and a two-hundred day moving average price of $25.20.

AXT (NASDAQ:AXTI) last released its quarterly earnings data 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 9.50%. The business had revenue of $23.04 million for the quarter, compared to the consensus estimate of $24.24 million. As a group, sell-side analysts expect that AXT Inc will post -0.07 EPS for the current year.

Insider Activity

In other AXT news, Director David C. Chang sold 20,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $38.53, for a total value of $770,600.00. Following the sale, the director owned 112,744 shares in the company, valued at approximately $4,344,026.32. The trade was a 15.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Morris S. Young sold 159,536 shares of the business’s stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $43.32, for a total value of $6,911,099.52. Following the completion of the sale, the chief executive officer owned 2,482,038 shares in the company, valued at $107,521,886.16. The trade was a 6.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 502,278 shares of company stock worth $21,196,754 in the last 90 days. Corporate insiders own 5.97% of the company’s stock.

Institutional Investors Weigh In On AXT

Institutional investors have recently bought and sold shares of the company. SG Americas Securities LLC bought a new stake in AXT in the 1st quarter valued at approximately $108,000. State of Wyoming bought a new stake in AXT in the 4th quarter valued at approximately $69,000. Kestra Advisory Services LLC bought a new stake in AXT in the 4th quarter valued at approximately $98,000. Oasis Management Co Ltd. bought a new stake in shares of AXT during the 4th quarter worth approximately $164,000. Finally, Osaic Holdings Inc. raised its stake in shares of AXT by 1,071.5% during the 4th 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. Institutional investors own 49.52% of the company’s stock.

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.