“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,,” Northland Securities’ analyst wrote.
Several other research firms have also recently weighed in on AXTI. Zacks Investment Research cut AXT from a buy rating to a hold rating in a research note on Friday, August 19th. B. Riley reaffirmed a buy rating and issued a $4.80 price objective on shares of AXT in a report on Thursday, July 28th. Finally, Needham & Company LLC raised AXT from a hold rating to a buy rating and set a $5.50 price objective for the company in a report on Thursday, July 28th. Four investment analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. AXT has an average rating of Buy and an average price target of $5.81.
AXT (NASDAQ:AXTI) traded up 1.01% on Thursday, hitting $4.99. The stock had a trading volume of 92,365 shares. The company’s market capitalization is $159.88 million. AXT has a 52 week low of $1.91 and a 52 week high of $5.08. The firm has a 50-day moving average of $4.40 and a 200 day moving average of $3.46.
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 firm earned $20.50 million during the quarter, compared to analysts’ expectations of $19.97 million. The company’s quarterly revenue was down 2.4% compared to the same quarter last year. On average, analysts predict that AXT will post $0.13 earnings per share for the current year.
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 stock was sold at an average price of $4.39, for a total transaction of $116,673.03. Following the completion of the sale, the vice president now owns 55,577 shares of the company’s stock, valued at $243,983.03. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 7.29% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in AXTI. Bank of New York Mellon Corp raised 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 valued at $209,000 after buying an additional 805 shares in the last quarter. 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 in the last quarter. Renaissance Technologies LLC raised its stake in AXT by 5.2% in the first quarter. Renaissance Technologies LLC now owns 481,800 shares of the company’s stock valued at $1,190,000 after buying an additional 23,800 shares in the last quarter. A.R.T. Advisors LLC bought a new stake in AXT during the second quarter valued at about $101,000. Finally, 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 in the last quarter. 42.35% of the stock is owned by institutional investors and hedge funds.
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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