AXT Sees Unusually Large Options Volume (NASDAQ:AXTI)

AXT Inc (NASDAQ:AXTI) was the target of some unusual options trading activity on Friday. Stock traders acquired 43,167 call options on the company. This represents an increase of 29% compared to the average volume of 33,442 call options.

AXT Price Performance

AXTI traded up $13.65 on Friday, reaching $60.59. 24,837,355 shares of the stock were exchanged, compared to its average volume of 10,168,362. The company’s 50-day moving average price is $77.44 and its 200 day moving average price is $61.74. The firm has a market capitalization of $3.96 billion, a PE ratio of -195.15 and a beta of 1.86. AXT has a fifty-two week low of $1.85 and a fifty-two week high of $143.16.

AXT (NASDAQ:AXTI) last released its earnings results on Thursday, July 30th. The semiconductor company reported $0.19 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.12. The firm had revenue of $47.59 million during the quarter, compared to the consensus estimate of $34.08 million. AXT had a negative return on equity of 5.71% and a negative net margin of 14.69%.AXT has set its Q3 2026 guidance at 0.300-0.320 EPS. As a group, equities analysts forecast that AXT will post 0.19 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

AXTI has been the subject of several analyst reports. UBS Group set a $90.00 price objective on AXT in a report on Friday. Weiss Ratings raised AXT from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 27th. Needham & Company LLC upgraded AXT from a “hold” rating to a “buy” rating and set a $90.00 price target for the company in a research note on Friday. B. Riley Financial lowered their price target on AXT from $73.00 to $52.00 and set a “neutral” rating for the company in a report on Tuesday. Finally, Northland Securities set a $125.00 price target on AXT in a research note on Wednesday, June 3rd. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $77.00.

AXT News Roundup

Here are the key news stories impacting AXT this week:

• Positive Sentiment: AXT reported second-quarter revenue of approximately $47.6 million, up 164.8% year over year and ahead of consensus estimates near $34 million. Adjusted earnings were $0.19 per share versus expectations of $0.07, compared with a $0.15 per-share loss a year earlier. AXT Second-Quarter 2026 Financial Results
• Positive Sentiment: Record indium phosphide (InP) demand was a key growth driver, with management citing rising requirements for AI data-center connectivity and improved productivity. Gross profit reached about $21.4 million, while operating profit was approximately $10.4 million, signaling a significant profitability improvement. AXTI Q2 Earnings Beat
• Positive Sentiment: AXT’s third-quarter outlook was well above analyst expectations: EPS guidance of $0.30 to $0.32 versus consensus of $0.10, and revenue guidance of approximately $66 million versus estimates near $38.7 million. The outlook suggests that demand momentum may continue into the next quarter.
• Positive Sentiment: Management outlined capacity-expansion plans to support higher InP output and improve margins as AI-related optical demand grows. A newly announced long-term supply and capacity-reservation agreement with Lumentum also provides additional visibility for future InP demand. AXT Lumentum Supplier Agreement
• Positive Sentiment: Needham upgraded AXTI from “Hold” to “Buy” and set a $90 price target, adding analyst support after the earnings release. Wedbush also reportedly sees continued strength in the company’s optical business.
• Neutral Sentiment: AXT ended the quarter with approximately $445.2 million in cash and equivalents, but reported cash use from operations and continues to face execution requirements associated with its planned capacity expansion.
• Negative Sentiment: Recent disclosed insider activity showed selling rather than buying by several executives and directors. Separately, B. Riley previously maintained a more pessimistic view of the stock, highlighting valuation and potential volatility risks after the sharp rally.

Insider Transactions at AXT

In other AXT news, Director Jesse Chen sold 13,000 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $95.77, for a total value of $1,245,010.00. Following the completion of the sale, the director directly owned 56,447 shares in the company, valued at $5,405,929.19. This trade represents a 18.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director David C. Chang sold 8,333 shares of AXT stock in a transaction 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 completion of the transaction, the director directly owned 65,165 shares in the company, valued at $7,244,393.05. This represents a 11.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 251,636 shares of company stock valued at $27,789,677 in the last 90 days. Insiders own 5.97% of the company’s stock.

Hedge Funds Weigh In On AXT

Institutional investors and hedge funds have recently modified their holdings of the stock. American Capital Advisory LLC acquired a new stake in AXT during the first quarter worth about $27,000. Kohmann Bosshard Financial Services LLC acquired a new stake in shares of AXT during the 1st quarter worth approximately $31,000. XTX Topco Ltd purchased a new position in shares of AXT during the 2nd quarter valued at approximately $42,000. Jefferies Financial Group Inc. acquired a new position in shares of AXT in the 3rd quarter valued at $52,000. Finally, Leonteq Securities AG purchased a new position in AXT in the first quarter valued at $57,000. Institutional investors and hedge funds own 49.52% of the company’s stock.

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.