What happened
According to a Form 4 filing with the Securities and Exchange Commission, AXT Inc director Jesse Chen sold a total of 19,947 shares of the company's common stock on March 4 and March 5, 2026. The transactions were reported under the sale code "S" and together produced proceeds of $768,195.
Transaction breakdown
On March 4, Chen sold 8,800 shares at a weighted average price of $38.8278 per share, yielding $341,685. Those sales were executed in multiple trades at prices ranging between $38.53 and $39.13. After completing the March 4 transactions, Chen's direct ownership in AXT Inc stood at 178,211 shares.
On March 5, Chen sold an additional 11,147 shares at a weighted average price of $38.2624, producing $426,510. The March 5 sales were also transacted in multiple trades at prices between $38.00 and $38.69. Following the March 5 transactions, Chen's direct holdings were reduced to 167,064 shares.
Context on the stock and valuation
AXT's shares have recorded an exceptional one-year performance, delivering an approximate return of 2,387% over the last 12 months. That sharp appreciation is noted alongside InvestingPro analysis indicating the stock is currently overvalued relative to its Fair Value. The company carries a market capitalization of $2.06 billion.
Operational and guidance update
Separately, AXT revised its fourth-quarter revenue expectation downward. The company now forecasts fourth-quarter revenue between $22.5 million and $23.5 million, a reduction from its previous guidance range of $27 million to $30 million. AXT attributed the adjustment to a lower number of export permits for indium phosphide substrates issued by China’s Ministry of Commerce, which the company says has constrained its ability to fulfill certain customer orders.
Analyst moves and sector notes
Following the guidance revision and valuation commentary, B.Riley lowered its rating on AXT from Buy to Neutral, citing valuation concerns, while simultaneously raising its price target to $18.00 from $9.00. In contrast, Craig-Hallum raised its price target on AXT to $26.00, pointing to robust demand and the company’s supply capabilities in an environment where competitors face constraints.
Broader analyst activity referenced in company commentary includes Needham's upgrades within the semiconductor equipment segment: Needham upgraded Nova Measuring Instruments to Buy with a $500.00 price target and upgraded Ichor Holdings to Buy with a $36.00 price target. Those moves were framed as reflecting a positive outlook for the semiconductor equipment sector, including potential upside related to memory wafer fabrication equipment.
Bottom line
AXT’s insider sale by director Jesse Chen, the company's lowered fourth-quarter revenue projection tied to export permit limitations, and mixed analyst adjustments combine to shape near-term investor attention on the company's execution and valuation dynamics within the semiconductor equipment and materials supply chain.