AXT, Inc. (NASDAQ: AXTI) has received a downgrade from Wall Street Zen, which shifted its rating from “hold” to “sell” in a research note released on Saturday. This change reflects broader market evaluations as several research firms reassess their positions on the semiconductor company.
Analysts from other firms have also weighed in on AXT’s stock. Northland Securities established a price target of $20.00 for AXT shares in a report dated December 22. In contrast, Needham & Company LLC increased their target price from $5.00 to $10.00, maintaining a “buy” rating on October 31. On January 9, Craig Hallum reaffirmed a “buy” rating, while Wedbush set a price target of $7.00 with an “outperform” rating on October 29. Additionally, B. Riley downgraded AXT from “buy” to “neutral,” raising their price objective from $9.00 to $18.00 on January 9.
Currently, three equities research analysts have given AXT a “buy” rating, one has maintained a “hold” rating, and one has issued a “sell” rating. As reported by MarketBeat, AXT holds a consensus rating of “hold” with a consensus price target of $13.75.
Stock Performance and Quarterly Earnings
Trading on NASDAQ, AXT opened at $22.09 on Friday, with a market capitalization of $1.22 billion. The company has a price-to-earnings ratio of -42.48 and a beta of 1.94. Over the past year, AXT’s share price has fluctuated significantly, with a low of $1.13 and a high of $26.66.
On October 30, AXT reported its quarterly earnings, revealing a loss of ($0.04) earnings per share (EPS), which was an improvement over analysts’ estimates of ($0.12) by $0.08. The firm generated revenue of $27.96 million for the quarter, surpassing predictions of $19.85 million. Analysts forecast an EPS of (0.12) for the current fiscal year.
Insider Activity and Institutional Investments
In related developments, Leonard J. Leblanc, a director at AXT, sold 3,637 shares on November 7 at an average price of $8.41, totaling approximately $30,587.17. Following this transaction, he retained 118,875 shares, valued at nearly $999,738.75. This sale represented a 2.97% reduction in his ownership stake.
On December 9, another director, David C. Chang, sold 25,000 shares at an average price of $14.84, amounting to $371,000.00. After this transaction, he held 132,744 shares, valued at around $1,969,920.96, marking a 15.85% decrease in his position. In total, insiders sold 326,767 shares valued at $3,329,808 in the last quarter, with corporate insiders owning 8.80% of the stock.
Institutional investors have also been active in the market. Acadian Asset Management LLC increased its stake in AXT by 2.8% during the first quarter, now owning 293,818 shares worth approximately $412,000. Other notable transactions include Creative Planning acquiring a new stake valued at about $86,000 and White Pine Capital LLC boosting its position by 2.8% with a total holding of 860,411 shares worth $1,798,000. As of now, institutional investors collectively own 49.52% of AXT’s shares.
About AXT, Inc.
Founded in 1986 and headquartered in Fremont, California, AXT, Inc. specializes in the development, manufacture, and distribution of compound and single-element semiconductor substrates. The company offers a range of materials essential for high-performance electronic and optoelectronic devices, including wafers made from materials such as gallium arsenide (GaAs) and indium phosphide (InP). AXT’s products are integral to various applications including data communications, wireless infrastructure, advanced computing, and consumer electronics.
As market conditions evolve, AXT’s performance will be closely monitored by investors and analysts alike.
