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, and 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, while three analysts have raised full-year EPS estimates with no negative revisions.
- 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 share sale at that price range anchored 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 feeding optical transceiver and photonic integrated circuit production for AI data centers, 5G infrastructure, and lidar. That puts it squarely in the supply chain Lumentum's results confirm is accelerating. 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 arithmetic 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 suggests a significant cohort is betting the opposite. The beat streak and cash flow trajectory at next earnings are the numbers that resolve the insider-versus-analyst disagreement. Run the free AXT, Inc. deep-dive →
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Frequently Asked Questions
Why did AXT's CEO sell shares in June?
Morris Young sold 197,498 shares at $112-$113 on June 1-2, totaling $22.3 million, but the article does not state a specific reason. The article frames two possibilities: either management read the valuation correctly and liquidated near a peak, or the AI-optical demand cycle proved faster-moving than the June exit anticipated. The stock has since fallen to $81.64, below every insider sale price in the window.
What is AXT's analyst consensus after the insider sales?
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 revision cycle followed four consecutive earnings beats, including a 166.7% upside surprise last quarter.
What does AXT make and how does it connect to AI?
AXT manufactures indium phosphide and gallium arsenide substrates, the wafers that feed optical transceiver and photonic integrated circuit production for AI data centers, 5G infrastructure, and lidar. Lumentum's fiscal Q4 results, which showed $1.006 billion in revenue up 109% year over year, confirmed the supply chain AXT feeds is accelerating.
What are the main risks in AXT's current valuation?
railing revenue, a forward P/E of 36.7x, and negative free cash flow of $44 million. A July 8 8-K also disclosed a triggering event affecting a material financial obligation under SEC Item 2.04, uncertainty the article notes the street's revision cycle has not fully absorbed.
What is AXT's short interest?
Short interest stands at 16% of float, indicating a meaningful cohort is betting against the stock. The article frames the beat streak and cash flow trajectory at next earnings as the numbers that will resolve the disagreement between insider selling and analyst upgrades.
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.
Sources & Filings