AXT, Inc. (NASDAQ:AXTI) could be one of the worst stocks that investors may not want to consider for their portfolio today as the company shares are trading 3.12% or 0.12 points down from last closing price of $3.84, reaching $3.72 at last check. Any clue why there is so much of action in the AXTI stock? The share price has dropped in 4 of the last 5 days and is down -4.95% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 103,093 shares, and in total 175493 shares valued at $652834 were seen changing hands compared with 72400 shares valued at $278016 recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the AXTI stock.
AXT, Inc. (AXTI) shares have notched a 3-month decline of about -4.95%, but has still tumbled -11.72% year to date. By comparison, the stock sank -46.67% over the past 12 months, while it jumped 4.63% over the 1 month. The company’s market cap is around $153.6M, with its short interest ratio standing at 6.47%.
In the current trading session for AXTI, the stock witnessed two major price actions, it rose to a high of $3.85 and was down as much as $3.715 at one point. The high recorded is very low when compared to their 52-week high which is $3.24. The 52-week high is now at -51.37 distance from current price. Their recent low of $7.65 represents a 14.81% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for AXTI is $6.9, this is below the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.
The stock of AXT, Inc. earned $0.07 per share in the trailing 12 months and has a P/E ratio of 53.14. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is higher than the ones recorded by the industry which is 26.32 and higher compared to the sector’s average of 29.65. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. AXTI also has P/S multiple of 1.55. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 0.83x.
AXTI‘s last price was down -13.58% as compared to the average trading price of 50 days recorded at $4.3 while enlarging the period to 200 trading days, the average closing price was $3.84. At present, there are 40 million in the total number of common shares owned by the public and among those 35.98 million shares have been available to trade. The percentage of shares being held by the company management was 10.91% while institutions stake was 58.7%. The company has generated positive returns on equity over the last 12 months (1.6%). It managed to keep its gross profit margin at 33% over the past 12 months.
When assessing the full upside of the AXTI stock, there is another set of technicals that should be looked into and considered. Its 1.67% gain from moving average of $3.66 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 1.54 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.
Most of the analysts surveyed by Thomson/First Call think quite highly of AXT, Inc. — 1 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $6.25 on shares of AXT, Inc. (NASDAQ:AXTI), which corresponds to 68.01% upside potential than its current market price of $3.72 and implies potential despite the recent drop in the price. However, their current target price has fallen from $6.25 a month ago and is down handily from the consensus target of $6.25 a quarter ago.
In the last five years, the EPS of the company has been roughly 24.1%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 10%. The revenue of the company has risen at an average annualized rate of about 3.7 over the last five years. The company recently recorded a drop of -8.5%, but this figure is rather unattractive.
Let’s briefly check the hedge fund interest towards AXTI stock. River & Mercantile Asset Management LLP changed position in the company and now owns 422,477 shares worth $1,571,614, SEC documents show. Royal Bank of Canada cut assets in the stock as 500380.7 shares have been sold, reducing its stake by -10.7% to 446,840 shares which are currently valued at $1,662,245. In addition, Verition Fund Management LLC recently reported that it now owns 136,728 shares making a total of $508,628 based on the recent price. This refelects a change of 28.2% in their ownership.