Insider Trading March 16, 2026

AXT CEO Disposes $1.93M in Stock as Company Lowers Q4 Revenue Outlook

Morris S. Young sold 37,905 shares while the stock traded near its 52-week high; company cites export-permit constraints for weaker guidance

By Priya Menon AXTI
AXT CEO Disposes $1.93M in Stock as Company Lowers Q4 Revenue Outlook
AXTI

A Form 4 filing shows AXT Inc. CEO Morris S. Young sold 37,905 shares on March 13, 2026, at a weighted average price of $51.1283 for a total of $1.93 million. The trade occurred as the stock traded close to its 52-week high after a 2,614% year-over-year gain. Separately, AXT reduced its fourth-quarter revenue outlook amid export-permit restrictions from China, and analysts offered mixed reactions on valuation and demand dynamics.

Key Points

  • AXT CEO Morris S. Young sold 37,905 shares on March 13, 2026, at a weighted average price of $51.1283, totaling about $1.93 million.
  • AXT revised fourth-quarter revenue guidance down to $22.5 million - $23.5 million, citing fewer export permits for indium phosphide substrates from China’s Ministry of Commerce.
  • Analysts gave mixed responses: Craig-Hallum raised its price target to $26 and kept a Buy rating; B. Riley downgraded the stock to Neutral while raising its target to $18.

A recent Form 4 disclosure shows that Morris S. Young, the chief executive officer of AXT Inc. (NASDAQ: AXTI), sold 37,905 shares of the company’s common stock on March 13, 2026. The shares were transacted at a weighted average price of $51.1283, producing a total transaction value of approximately $1.93 million.

The reported sale came while the stock was trading close to its 52-week high of $51.98, following an extraordinary 2,614% rise over the past year. The prices recorded for the shares in the filing ranged between $50.87 and $51.45. After the disposition, Young is shown as directly holding 2,275,328 shares, with the shares previously held indirectly by Young Family Trust DTD.


Valuation and financial metrics

Third-party analysis cited within the filing context indicates that AXTI may be trading at elevated valuation multiples. Specifically, the stock is reported to carry a Price/Book ratio of 9.86. The same analysis assigns the company’s financial health a "Fair" rating and highlights gross profit margins of 13% as a weak point.

Investors are also pointed to a broader research offering covering AXTI alongside over 1,400 other U.S. equities for more detailed model-driven valuation work.


Updated revenue outlook and operational constraint

In separate company disclosures, AXT lowered its guidance for fourth-quarter revenue to a range of $22.5 million to $23.5 million, down from an earlier expectation of $27 million to $30 million. Management attributed the reduction to fewer export permits for indium phosphide substrates issued by China’s Ministry of Commerce, a change that affected the company’s ability to fulfill certain customer orders.

Analyst responses to the revised outlook have been mixed. Craig-Hallum raised its price target for AXT to $26.00 from $10.00 and maintained a Buy rating, citing strong demand and potential constraints on competitors. By contrast, B. Riley moved AXT from Buy to Neutral, pointing to valuation concerns even as it increased its price target to $18.00 from $9.00.


Sector context and related analyst moves

The broader semiconductor equipment and materials segment also saw analyst activity noted in the filings. Needham upgraded Nova Measuring Instruments to Buy with a $500.00 price target, noting its global execution and potential benefit from memory wafer fabrication equipment demand in China in 2026. Needham also upgraded Ichor Holdings to Buy with a $36.00 price target, framing it as a potential derivative play linked to larger semiconductor equipment manufacturers.

These assorted analyst actions underscore divergent views on demand dynamics and company valuations within the semiconductor supply chain.


Note on reported holdings: The shares sold by Young were reported as held indirectly by Young Family Trust DTD prior to the transaction. The filing details and the company’s revised revenue range were disclosed by AXT in its public communications.

Risks

  • Export-permit restrictions from China’s Ministry of Commerce may limit AXT’s ability to fulfill customer orders, impacting revenue and operations - this risk affects the semiconductor materials and supply chain sectors.
  • High valuation metrics, such as a Price/Book ratio of 9.86 coupled with thin gross margins (13%), create valuation uncertainty for investors in semiconductor-equipment and materials stocks.
  • Insider selling while the stock trades near its 52-week high could raise questions for market participants, introducing additional short-term sentiment risk for the company's shares.

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