AXT Inc (AXTI) stock coverage initiated with “Buy” in note to investors by Dougherty & Co

AXT Inc (NASDAQ: AXTI) shares rose on Monday February 13 on lower trade volume than normal after more analysts initiated coverage on the stock.

Meanwhile U.S. stock-market indexes opened higher on Monday, setting intraday all-time highs shortly after market open. The S&P 500 SPX, +0.35% opened up 6 points, or 0.2%, at 2,322.

The Nasdaq Composite COMP, +0.44% began the session up 18 points, or 0.3% higher at 5,752. The Dow Jones Industrial Average DJIA, +0.51% added 64 points or 0.3%, to 20,340 at the open.

Analysts at Dougherty & Co initiated coverage on AXT Inc (NASDAQ: AXTI) stock, rating the company at Buy. With a rating of Buy on the stock, AXT Inc has a 52-week high of $6.80. The one-year price target of $7.13 is higher than the opening price of $6.45, that has caused a fair amount of other analysts to report on the stock recently. Changes in price targets are not uncommon as analysts and brokerage firms will re periodic updates after initiating coverage,.

Shares of AXT Inc (NASDAQ: AXTI) opened at $6.45 yesterday and traded in a range between, $6.45 and $6.80, and last traded at $6.68, which represents a jump of $0.48 compared to the previous closing price.

AXT Inc (NASDAQ: AXTI) currently has a market cap of 214.99M.

AXT Inc (NASDAQ: AXTI) Average Daily Trading Volume

189,287 shares traded hands yesterday, 113 percent below normal, out of a total float 30,236,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.

However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these retain teams of analysts that investigate thousands of stocks, so it is good corroboration to see them buying a stock you’re researching.

AXT Inc (NASDAQ: AXTI) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for AXT Inc (NASDAQ: AXTI) have ranged from $2.43 – 6.800, and the stock now has a 50-day MA of $5.66 and 200-day MA of $4.97. Today’s last price is 1.84%% lower than the 52 week high of $6.80.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors watch for companies that have raised their earnings at least 25% or more for a 3 year period.

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