AXT Inc. (AXTI) Reaches New 12-Month High on Analyst Upgrade
AXT Inc. (NASDAQ:AXTI)’s share price reached a new 52-week high on Friday after Northland Securities raised their price target on the stock from $4.50 to $7.00. Northland Securities currently has an outperform rating on the stock. AXT traded as high as $5.08 and last traded at $5.06, with a volume of 261,168 shares traded. The stock had previously closed at $4.94.
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,”
A number of other equities analysts have also weighed in on AXTI. B. Riley restated a “buy” rating and set a $4.80 price target on shares of AXT in a research report on Tuesday, August 2nd. Zacks Investment Research lowered shares of AXT from a “buy” rating to a “hold” rating in a research report on Tuesday, July 26th. Finally, Needham & Company LLC upgraded shares of AXT from a “hold” rating to a “buy” rating and set a $5.50 price target on the stock in a research report on Thursday, July 28th. Five research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the stock. AXT presently has an average rating of “Buy” and a consensus price target of $5.81.
In other AXT news, VP Robert G. Ochrym sold 26,577 shares of the business’s stock in a transaction dated Monday, August 29th. The shares were sold at an average price of $4.39, for a total value of $116,673.03. Following 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 7.29% of the stock is currently owned by company insiders.
Large investors have recently added to or reduced their stakes in the stock. Renaissance Technologies LLC increased its stake in AXT by 5.2% in the first quarter. Renaissance Technologies LLC now owns 481,800 shares of the company’s stock worth $1,190,000 after buying an additional 23,800 shares during the period. Acadian Asset Management LLC bought a new stake in AXT during the second quarter worth about $158,000. ClariVest Asset Management LLC bought a new stake in AXT during the second quarter worth about $822,000. Bank of New York Mellon Corp increased its stake in AXT by 1.2% in the second quarter. Bank of New York Mellon Corp now owns 65,472 shares of the company’s stock worth $209,000 after buying an additional 805 shares during the period. Finally, EAM Investors LLC bought a new stake in AXT during the second quarter worth about $1,289,000. 42.35% of the stock is currently owned by institutional investors and hedge funds.
The stock’s 50 day moving average price is $4.43 and its 200-day moving average price is $3.47. The company’s market cap is $166.29 million.
AXT (NASDAQ:AXTI) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $0.03 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.01 by $0.02. The business earned $20.50 million during the quarter, compared to the consensus estimate of $19.97 million. AXT had a negative net margin of 0.01% and a negative return on equity of 0.01%. The business’s quarterly revenue was down 2.4% compared to the same quarter last year. On average, analysts anticipate that AXT Inc. will post $0.13 earnings per share for the current fiscal year.
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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