AXT CEO Secures 218,000 Performance Shares, Betting on FY 2025 Targets Amid Insider Buying Surge

Insider Activity Spotlight: AXT Inc. CEO Buys Performance Shares

The latest filing from AXT Inc. on February 18, 2026 shows CEO YOUNG MORRIS S acquiring 218,170 shares of common stock in a performance‑share award under the 2015 Equity Incentive Plan. The shares were granted at no cash cost, reflecting that the award is tied to FY 2025 financial targets. While the transaction is a buy on paper, it is essentially a vesting of future equity that will materialize only if the company hits its performance milestones. Investors should therefore view this not as a cash‑outflow but as a sign that the CEO is aligning his own wealth with the company’s long‑term value creation.

What This Means for Shareholders

A performance‑share award is a classic “skin‑in‑the‑game” tool. It signals confidence from management that the company is on track to meet its FY 2025 goals, yet it also keeps a sizable block of shares on the “liability” side of the balance sheet until those targets are achieved. For investors, the immediate impact is minimal—the shares are non‑voting until vesting—but the broader implication is that the CEO’s wealth will increase only if the company’s performance improves, which can be a reassuring signal of management intent. In a market where AXT’s stock has shown a 22.44% weekly swing and a 50.05% monthly rally, such insider alignment can add a layer of credibility to the narrative of a turnaround.

Insider Buying Trends at AXT

Across the board, AXT’s insiders have been a mixed bag of sellers and buyers. The CEO’s recent history is dominated by a flurry of selling activity in December 2025, including a 37,160‑share sale at $12.46 and a 32,680‑share purchase at $3.06, resulting in a net reduction of holdings from 2,549,490 to 2,449,490 shares. The CFO, Gary Fischer, has also been active, buying 75,718 shares in February and previously selling sizable blocks in November. The overall pattern suggests that insiders are actively managing liquidity while still maintaining substantial positions, perhaps to hedge against short‑term volatility while preparing for future upside.

Profile of YOUNG MORRIS S

YOUNG MORRIS S’s transaction history paints the picture of a CEO who balances opportunistic sales with strategic equity retention. Over the past year, he has sold large blocks of common stock—often at or above the market price—yet consistently holds a core position of roughly 2.4 million shares. His most recent performance‑share award is a clear signal that he believes in the company’s trajectory. Historically, his sales have been timed around earnings releases or major corporate announcements, suggesting a tactical approach to liquidity needs. At the same time, his periodic purchases during market dips indicate a long‑term belief in AXT’s technology and market position.

Investor Takeaway

For shareholders, the CEO’s purchase of performance shares is a positive, albeit indirect, vote of confidence. It aligns the CEO’s incentives with shareholders’ interests and indicates that management expects AXT to hit key FY 2025 milestones. The broader insider activity—particularly the CFO’s buying spree—reinforces a narrative that insiders are positioning themselves for a post‑growth phase. While AXT’s P/E remains negative and the market cap modest, the insider alignment and the company’s recent financial improvement suggest that the stock may be primed for a cautious upside as the company meets its performance targets. Investors should watch for the vesting of the performance shares and any subsequent corporate action that could translate those awards into tangible value.