Northland Securities Increases AXT Inc. (AXTI) Price Target to $7.00

AXT Inc. (NASDAQ:AXTI) had its price objective raised by Northland Securities from $4.50 to $7.00 in a research report sent to investors on Thursday morning. They currently have an outperform rating on the stock.

“Despite the stock recent push to $5.00, we believe shares remain undervalued and AXTI will continue to deliver results that are in-line or better for the foreseeable future,” analyst Tom Sepenzis wrote in a note.Indium Phosphide ImportanceThe company provides Indium Phosphide (InP) and Gallium arsenide, key semiconductor material for telecom carriers and device manufacturers. Indium Phosphide (InP) is essential for optical systems to deliver the expected performance for data center, mobile backhaul, metro and long-haul applications. On the other hand, Gallium arsenide is used to make devices such as integrated circuits, infrared light-emitting diodes, laser diodes, solar cells and optical windows.”We believe the continued push by carriers worldwide towards 100G and 400G optical infrastructure will help AXTI deliver additional growth moving forward, with 5G cellular delivering significant upside opportunity 2–3 years out,” Sepenzis noted.Related Link: Infant Tech Company Research Frontiers Could Grow Up To Be Worth $6 A ShareIn addition to carrier upgrades, Indium Phosphide is in great demand from Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL),, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), Alibaba Group Holding Ltd (NYSE: BABA) and Baidu Inc (ADR) (NASDAQ: BIDU) for their data center upgrades.Gallium ArsenideIn addition, the June quarter also saw a rebound in its gallium arsenide business and the analyst expects additional growth in the September quarter.”We have modeled a modest 3.0 percent Q/Q growth, but believe the persistent strength in the Chinese handset market and initial unexpected strength in Apple will help AXTI deliver results that are in-line to better in the current quarter,,” Northland Securities’ analyst wrote.

Several other brokerages also recently weighed in on AXTI. Zacks Investment Research downgraded shares of AXT from a buy rating to a hold rating in a research note on Friday, August 19th. B. Riley restated a buy rating and issued a $4.80 target price on shares of AXT in a research note on Thursday, July 28th. Finally, Needham & Company LLC upgraded shares of AXT from a hold rating to a buy rating and set a $5.50 target price for the company in a research note on Thursday, July 28th. Five research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company. The company currently has a consensus rating of Buy and a consensus price target of $5.81.

Shares of AXT (NASDAQ:AXTI) opened at 5.50 on Thursday. AXT has a one year low of $1.93 and a one year high of $5.63. The stock has a 50 day moving average of $4.52 and a 200 day moving average of $3.53. The stock’s market cap is $176.22 million.

AXT (NASDAQ:AXTI) last announced its earnings results on Wednesday, July 27th. The company reported $0.03 earnings per share for the quarter, beating the consensus estimate of $0.01 by $0.02. The business earned $20.50 million during the quarter, compared to the consensus estimate of $19.97 million. AXT had a negative net margin of 0.01% and a negative return on equity of 0.01%. AXT’s revenue for the quarter was down 2.4% compared to the same quarter last year. Equities analysts expect that AXT will post $0.13 EPS for the current fiscal year.

In other AXT news, VP Robert G. Ochrym sold 26,577 shares of the stock in a transaction on Monday, August 29th. The shares were sold at an average price of $4.39, for a total transaction of $116,673.03. Following the transaction, the vice president now directly owns 55,577 shares in the company, valued at approximately $243,983.03. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 7.29% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of AXTI. A.R.T. Advisors LLC bought a new position in AXT during the second quarter worth approximately $101,000. Coe Capital Management LLC bought a new position in AXT during the second quarter worth approximately $391,000. Vanguard Group Inc. increased its position in AXT by 1.5% in the second quarter. Vanguard Group Inc. now owns 1,420,128 shares of the company’s stock worth $4,530,000 after buying an additional 21,488 shares during the period. Dimensional Fund Advisors LP increased its position in AXT by 2.4% in the second quarter. Dimensional Fund Advisors LP now owns 1,885,895 shares of the company’s stock worth $6,016,000 after buying an additional 44,701 shares during the period. Finally, EAM Investors LLC bought a new position in AXT during the second quarter worth approximately $1,289,000. Hedge funds and other institutional investors own 42.35% of the company’s stock.

AXT Company Profile

AXT, Inc (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials.

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