AXT Sees Unusually High Options Volume (NASDAQ:AXTI)

AXT Inc (NASDAQ:AXTI) was the recipient of unusually large options trading activity on Friday. Stock traders purchased 43,167 call options on the stock. This represents an increase of approximately 29% compared to the typical volume of 33,442 call options.

Insider Buying and Selling

In other news, Director David C. Chang sold 8,333 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $111.17, for a total transaction of $926,379.61. Following the transaction, the director owned 65,165 shares of the company’s stock, valued at approximately $7,244,393.05. This represents a 11.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Jesse Chen sold 6,172 shares of the 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 sale, the director owned 50,275 shares in the company, valued at approximately $5,793,691. The trade was a 10.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 251,636 shares of company stock valued at $27,789,677 in the last ninety days. 5.97% of the stock is owned by company insiders.

Institutional Trading of AXT

A number of hedge funds have recently added to or reduced their stakes in the business. Tema ETFs LLC bought a new position in AXT during the 2nd quarter worth about $105,000. Handelsbanken Fonder AB bought a new stake in shares of AXT in the 2nd quarter valued at about $1,391,000. Shariaportfolio Inc. purchased a new stake in shares of AXT in the 1st quarter worth approximately $984,000. Bank of America Corp DE lifted its position in shares of AXT by 112.0% in the 1st quarter. Bank of America Corp DE now owns 776,300 shares of the semiconductor company’s stock worth $44,234,000 after purchasing an additional 410,181 shares during the period. Finally, Janus Henderson Group PLC bought a new position in shares of AXT during the first quarter valued at approximately $1,395,000. 49.52% of the stock is owned by hedge funds and other institutional investors.

More AXT News

Here are the key news stories impacting AXT this week:

• Positive Sentiment: Q2 results substantially exceeded expectations: AXT reported $0.19 in earnings per share versus the $0.07 consensus estimate, while revenue reached approximately $47.6 million, well above estimates near $34 million and up sharply from the prior year. The company also reported improved gross and operating profitability. AXTI Q2 Earnings Beat on Record InP Demand, Revenues Rise Y/Y
• Positive Sentiment: AI-related demand is accelerating: Management cited record InP revenue and strong demand from data-center optical connectivity customers. AXT plans to expand capacity and increase output while targeting further margin improvement. AXTI Q2 Earnings Call Highlights AI Capacity Expansion
• Positive Sentiment: Q3 guidance was well above consensus: AXT forecast earnings of $0.30-$0.32 per share and revenue of roughly $66 million, compared with analyst expectations of $0.10 EPS and $38.7 million in revenue. AXT Stock Rips Higher After Q2 Earnings
• Positive Sentiment: Analyst sentiment improved: Needham upgraded AXT from Hold to Buy and assigned a $90 price target. Heavy call-option buying also indicated increased bullish trading interest. Needham Upgrades AXT to Buy
• Neutral Sentiment: Despite the improved quarter, AXT’s trailing net margin remains negative and the stock continues to exhibit significant volatility, increasing the risk of sharp price swings after the rally.
• Negative Sentiment: Reported insider-trading data shows executives made multiple sales and no purchases during the past six months, which could temper investor confidence, although these transactions may not reflect current operating conditions.

AXT Stock Up 28.7%

Shares of NASDAQ:AXTI opened at $60.43 on Friday. The business’s 50 day moving average is $75.83 and its 200 day moving average is $61.74. The stock has a market cap of $3.95 billion, a P/E ratio of 3,021.50 and a beta of 1.86. AXT has a 52-week low of $1.85 and a 52-week high of $143.16.

AXT (NASDAQ:AXTI) last issued its earnings results on Thursday, July 30th. The semiconductor company reported $0.19 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.12. AXT had a return on equity of 1.55% and a net margin of 3.23%.The business 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.

Analyst Ratings Changes

Several brokerages have commented on AXTI. B. Riley Financial cut their price objective on AXT from $73.00 to $52.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 28th. Northland Securities set a $125.00 target price on AXT in a research report on Wednesday, June 3rd. Weiss Ratings raised shares of AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, May 27th. UBS Group set a $90.00 price target on shares of AXT in a report on Friday. Finally, Needham & Company LLC raised shares of AXT from a “hold” rating to a “buy” rating and set a $90.00 price target on the stock in a research note on Friday. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, AXT presently has a consensus rating of “Hold” and an average target price of $77.00.

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.