AXT CEO Sold $22M at $113. Shares Now Trade at $82.
AXT's CEO Morris Young sold $22.3 million in shares at $112-$113 on June 1-2, and the stock now trades at $81.64, below every insider transaction recorded between June 1 and June 15. Three analysts ha
AXT CEO Sold $22M at $113; Shares Now Trade at $82
NEW YORK, August 16, AXT, Inc. (AXTI) designs compound semiconductor substrates for AI data center optical interconnects. Its CEO sold $22.3 million in shares at $112, $113 in June. The stock now trades at $81.64, below every insider transaction in that window. Three analysts have raised full-year EPS estimates with no negative revisions.
The numbers: CEO Morris Young sold 197,498 shares for $22.3M on June 1-2 at $112, $113; all shares now underwater. Three analysts raised full-year EPS estimates 309.8% in the past month; consensus now $0.86 for 2026. AXT's trailing revenue grew 164.8% year over year to ~$130M; free cash flow was negative $44M.
Thirteen Sales, No Buys
Between June 1 and June 15, CEO Morris Young, Director Jesse Chen, and Director David C. Chang collectively sold $29.17 million in AXT shares at prices ranging from $86.73 to $115.24, with zero open-market purchases in the period. Young's two-day sale at $112, $113 accounted for the bulk of that total. The stock now sits at $81.64, below every sale price in the window, including Chen's lowest transaction at $86.73 on June 10.
Either the CEO read the valuation correctly and liquidated near a peak, or the AI-optical demand cycle that drove AXT's trailing revenue up 164.8% proved faster-moving than management's June exit anticipated.
The Demand Signal Insiders Sold Into
AXT manufactures indium phosphide and gallium arsenide substrates, the wafers used in optical transceiver and photonic integrated circuit production for AI data centers, 5G infrastructure, and lidar. Lumentum's results confirm that supply chain is accelerating, and AXT sits at its center. Three analysts raised full-year EPS estimates in the past month with zero negative revisions, lifting the 2026 consensus 309.8% to $0.86. That extends a streak of four consecutive beats, capped by a 166.7% upside surprise last quarter.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| AXTI | $5.4B | 36.7x | +3844.0% |
| AAOI | $12.7B | 32.7x | +475.1% |
| AEHR | $4.4B | 96.9x | +591.4% |
| COHR | $63.7B | 23.4x | +260.1% |
| LITE | $82.1B | 28.1x | +678.4% |
| POET | $1.7B | n/a | +89.3% |
The Number That Settles It
The valuation requires the earnings trajectory to hold: AXT carries a $5.35 billion market cap against $130 million in trailing revenue and a forward P/E of 36.7x, worth pressure-testing in the DCF calculator. Negative free cash flow of $44 million and a July 8 8-K disclosing a triggering event affecting a material financial obligation (SEC Item 2.04) add uncertainty the street's revision cycle has not fully absorbed. Short interest at 16% of float shows a sizable portion of the market betting against it. The beat streak and cash flow trajectory at next earnings are the numbers that resolve the insider-versus-analyst disagreement.
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Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
AXT's CEO sold $22.3 million in stock at $112-$113 per share in June 2026 — shares that now trade at $81.64, below every price at which insiders sold during the period. Meanwhile, analysts have raised full-year EPS estimates 309% in the past month with zero negative revisions, citing AI-driven optical demand for the compound semiconductor substrates AXT supplies.
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