AXT's Buy Rating Reaffirmed by Needham & Company

AXT, Inc. (NASDAQ:AXTI) has received a boost from Needham & Company LLC, which reaffirmed its "buy" rating on the company’s stock in a recent research report. The firm has set a price target of $5.00 per share, indicating a substantial potential upside of approximately 118.34% from the current trading price.

Recent Analyst Ratings

Several other financial analysts have also weighed in on AXT's stock. For example, Wedbush reiterated an "outperform" rating and established a price target of $5.50 on February 7. In a report dated November 1, Northland Securities revised its target price for AXT from $6.00 to $5.00, while maintaining an "outperform" rating. As it stands, one analyst has issued a sell rating, whereas five have recommended a buy, leading to an average rating of "Moderate Buy" across the board, with a consensus price target of $5.20.

Performance of AXT Stock

On Friday, shares of AXT opened at $2.29, valuing the company at approximately $102.48 million. The stock has displayed a price-to-earnings ratio of -9.16 and a beta of 2.08. Over the last year, AXT's shares have fluctuated, with a low of $1.73 and a high of $5.64. The company's 50-day moving average stands at $2.19, while the two-hundred day moving average is at $2.30.

Earnings Results

On February 20, AXT announced its quarterly earnings, reporting a loss of $0.12 per share, which fell short of analysts' expectations of a loss of $0.04 per share. The company recorded a negative return on equity of 4.58% and a net margin of -10.73%. Analysts forecast that AXT could report an EPS of -0.22 for the current fiscal year.

Institutional Investor Activity

A number of institutional investors have recently taken positions in AXT. For instance, Creative Planning acquired a new stake in AXT worth $127,000 during the third quarter. Assenagon Asset Management S.A. increased its holdings by 26.5%, now owning 63,794 shares worth $154,000. GSA Capital Partners LLP raised its stake by 25.1%, owning 301,812 shares valued at $730,000. Connor Clark & Lunn Investment Management Ltd. has also upped its holdings by 10%, acquiring 606,417 shares worth $1,468,000. In total, institutional investors and hedge funds own 49.52% of AXT’s shares.

About AXT

AXT, Inc. is involved in the design, development, manufacturing, and distribution of semiconductor substrates, including both compound and single element products. Its offerings include indium phosphide which is essential for high-speed data transfers in data centers, 5G communications, fiber optic technologies, and various consumer devices. The company plays a vital role in fields such as photonics, thermal imaging, and robotics.

AXT, Stocks, Investing