Jesse Chen, Director of AXT (NASDAQ: AXTI), has sold 14,086 shares of the company in recent open-market transactions, marking an 11.4% reduction in his direct holdings. The sales occurred at a weighted average price of $49.70, during a period when AXT shares have surged 2,820% over the past year. This transaction is part of a broader trend, with Chen having reduced his stake by 41.43% across four sales in March 2026.
The significance of these sales lies in their timing amid substantial stock appreciation and potential liquidity management by Chen. While AXT’s revenue growth has faced challenges, the ongoing AI infrastructure boom and the reinstatement of export permits to China could bolster future demand for its semiconductor substrates, which are critical for high-growth sectors like 5G and optical communications.
For investors, Chen’s decision to retain 89% of his holdings suggests a continued confidence in AXT’s long-term prospects, despite the recent sales. This duality of insider selling and retained ownership may prompt further scrutiny of AXT’s market dynamics and future performance.
Source: fool.com