Key Points
Chen sold 14,086 shares across March 12 and March 13, 2026, for a total transaction value of ~$700,000 at an average price of around $49.70 per share.
This sale represented 11.40% of Chen’s direct holdings, reducing his direct stake from 123,612 to 109,526 shares.
The transaction was executed entirely through direct ownership; no indirect holdings or derivative securities were involved.
The size and cadence of this transaction are consistent with Chen’s historical pattern of open-market sales, aligning closely with his recent median sale size.
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Jesse Chen, Director of AXT (NASDAQ:AXTI), reported the sale of common stock in multiple open-market transactions, according to a SEC Form 4 filing.
Transaction summary
| Metric | Value |
|---|---|
| Shares sold (direct) | 14,086 |
| Transaction value | ~$700,000 |
| Post-transaction shares (direct) | 109,526 |
| Post-transaction value (direct ownership) | ~$5.35 million |
Transaction value based on SEC Form 4 weighted average purchase price ($49.70).
Key questions
- How did this transaction impact Chen’s overall ownership in AXT?
Following this sale, Chen’s direct holdings decreased by 14,086 shares, representing an 11.40% reduction in his directly held position, leaving him with 109,526 shares and no indirect or derivative exposure. - How does the trade size compare to Chen’s historical sales?
The 14,086 shares sold are slightly below Chen’s recent median open-market sale size of 17,199.5 shares, and fall within the observed range of 14,086 to 29,000 shares for the past five sell transactions. - Was this sale part of a broader pattern or an isolated event?
This transaction is part of a recent sequence of four open-market sales by Chen between March 5 and March 13, 2026, during which he reduced his direct holdings by 41.43%. - What is the market context for this transaction?
As of March 13, 2026, AXT shares closed at $48.86, with a one-year total return of 2,820%, indicating this sale occurred amid a period of substantial share price appreciation and ongoing liquidity management by the director.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $88.33 million |
| Net income (TTM) | -$21.26 million |
| 1-year price change | 2,820% |
* 1-year price change calculated as of market close March 13, 2026.
Company snapshot
- Produces compound and single element semiconductor substrates, including indium phosphide, gallium arsenide, and germanium for use in data center connectivity, 5G, fiber optics, LEDs, lidar, and satellite solar cells.
- Operates a vertically integrated manufacturing model leveraging proprietary vertical gradient freeze technology; generates revenue through direct sales and distribution of high-purity substrates and related materials.
- Serves global technology OEMs and component manufacturers in the United States, China, Europe, Japan, Taiwan, and Korea, targeting sectors such as communications, industrial, automotive, and aerospace.
AXT is a leading supplier of advanced semiconductor substrates, supporting high-growth markets such as optical communications, 5G, and photonics. The company’s scale and proprietary manufacturing processes enable it to address demanding applications requiring high-purity materials and performance consistency. With a global customer base and diversified end markets, AXT is positioned to benefit from ongoing innovation in connectivity and sensing technologies.
What this transaction means for investors
Investors are rarely told why an insider sells shares of company stock. However, investors wondering why Jesse Chen sold some of his AXT shares should probably look no further than the chip stock’s performance over the last 12 months.
As of March 13, it had made gains of 2,820% over the previous year.
Although revenue growth actually retreated in 2025, the AI infrastructure boom has changed the game for AXT stock, as it should increase the demand for its semiconductor substrates. Also, the reinstatement of export permits to China has presumably reopened that market to the company, which should significantly boost revenues over the long term.
Additionally, the stock’s 52-week low of $1.13 per share was likely indicative of some momentum buying. This makes predicting the near-term behavior of the stock more difficult. Hence, that move could have driven Chen’s stock sales.
Still, it only amounts to around 11% of his previous holdings. The fact that he kept the other 89% of his shares is probably indicative of Chen’s continued confidence in AXT.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
