AXT Inc. (AXTI) PT Raised to $7.00
AXT Inc. (NASDAQ:AXTI) had its price objective hoisted by investment analysts at Northland Securities from $4.50 to $7.00 in a research report issued on Thursday. Northland Securities’ price objective indicates a potential upside of 40.28% from the stock’s current price.
The analysts wrote, “Despite the stock recent push to $5.00, we believe shares remain undervalued and AXTI will continue to deliver results that are in-line or better for the foreseeable future,” analyst Tom Sepenzis wrote in a note.Indium Phosphide ImportanceThe company provides Indium Phosphide (InP) and Gallium arsenide, key semiconductor material for telecom carriers and device manufacturers. Indium Phosphide (InP) is essential for optical systems to deliver the expected performance for data center, mobile backhaul, metro and long-haul applications. On the other hand, Gallium arsenide is used to make devices such as integrated circuits, infrared light-emitting diodes, laser diodes, solar cells and optical windows.”We believe the continued push by carriers worldwide towards 100G and 400G optical infrastructure will help AXTI deliver additional growth moving forward, with 5G cellular delivering significant upside opportunity 2–3 years out,” Sepenzis noted.Related Link: Infant Tech Company Research Frontiers Could Grow Up To Be Worth $6 A ShareIn addition to carrier upgrades, Indium Phosphide is in great demand from Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), Alibaba Group Holding Ltd (NYSE: BABA) and Baidu Inc (ADR) (NASDAQ: BIDU) for their data center upgrades.Gallium ArsenideIn addition, the June quarter also saw a rebound in its gallium arsenide business and the analyst expects additional growth in the September quarter.”We have modeled a modest 3.0 percent Q/Q growth, but believe the persistent strength in the Chinese handset market and initial unexpected strength in Apple will help AXTI deliver results that are in-line to better in the current quarter,”
AXTI has been the subject of several other reports. Zacks Investment Research upgraded AXT from a “hold” rating to a “strong-buy” rating and set a $4.50 price target for the company in a research note on Tuesday, August 23rd. Needham & Company LLC upgraded AXT from a “hold” rating to a “buy” rating and set a $5.50 target price for the company in a research report on Thursday, July 28th. Finally, B. Riley reiterated a “buy” rating and set a $4.80 target price on shares of AXT in a research report on Tuesday, August 2nd. Four analysts have rated the stock with a buy rating and one has given a strong buy rating to the company. AXT has a consensus rating of “Buy” and an average target price of $5.45.
AXT (NASDAQ:AXTI) traded down 0.40% on Thursday, hitting $4.97. 38,181 shares of the company’s stock traded hands. The stock’s market cap is $159.24 million. AXT has a 12 month low of $1.90 and a 12 month high of $5.08. The stock has a 50 day moving average price of $4.37 and a 200-day moving average price of $3.44.
AXT (NASDAQ:AXTI) last posted its quarterly earnings results on Wednesday, July 27th. The company reported $0.03 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.01 by $0.02. AXT had a negative return on equity of 0.01% and a negative net margin of 0.01%. The business earned $20.50 million during the quarter, compared to the consensus estimate of $19.97 million. AXT’s revenue was down 2.4% compared to the same quarter last year. Equities analysts predict that AXT will post $0.13 earnings per share for the current fiscal year.
In other news, VP Robert G. Ochrym sold 26,577 shares of the stock in a transaction that occurred on Monday, August 29th. The stock was sold at an average price of $4.39, for a total transaction of $116,673.03. Following the completion of the transaction, the vice president now directly owns 55,577 shares in the company, valued at approximately $243,983.03. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 7.29% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. A.R.T. Advisors LLC bought a new stake in AXT during the second quarter valued at $101,000. Coe Capital Management LLC bought a new stake in AXT during the second quarter valued at $391,000. Vanguard Group Inc. raised its stake in AXT by 1.5% in the second quarter. Vanguard Group Inc. now owns 1,420,128 shares of the company’s stock valued at $4,530,000 after buying an additional 21,488 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in AXT by 2.4% in the second quarter. Dimensional Fund Advisors LP now owns 1,885,895 shares of the company’s stock valued at $6,016,000 after buying an additional 44,701 shares during the last quarter. Finally, EAM Investors LLC bought a new stake in AXT during the second quarter valued at $1,289,000. Hedge funds and other institutional investors own 42.35% of the company’s stock.
AXT Company Profile
AXT, Inc (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials.
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