Pacific Ridge Sells 1.7 Million Shares of AXT Stock
Key Points
Pacific Ridge Capital Partners completely exited its stake in AXT, Inc.
Pacific Ridge's stake in AXT was valued at $8 million in the firm's third-quarter 13F filing.
AXT shares represented 1.8% of Pacific Ridge Capital Partners, LLC’s reportable 13F assets under management (AUM) in the third quarter.
Based on the average trading price during Q4, the transaction value is estimated at $17 million.
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On Feb. 4, 2026, Pacific Ridge Capital Partners, LLC, sold its entire stake in AXT (NASDAQ:AXTI), disposing of 1,793,797 shares in the fourth quarter.
What happened
According to an SEC filing dated Feb. 4, 2026, Pacific Ridge Capital Partners, LLC, sold its entire holding of 1,793,797 shares in AXT (NASDAQ:AXTI). The estimated transaction value was $17.1 million, calculated using the average trading price for the quarter. The quarter-end value of the position fell by $8.1 million, leaving no remaining shares.
What else to know
- Pacific Ridge Capital Partners, LLC, exited its investment in AXT.
- Top holdings reported after the filing:
- NASDAQ: NBN: $13.2 million (2.9% of AUM)
- NYSE: NGS: $11.6 million (2.6% of AUM)
- NYSE: HRTG: $10.9 million (2.4% of AUM)
- NASDAQ: ALCO: $10.3 million (2.3% of AUM)
- NYSE: BBW: $10.1 million (2.2% of AUM)
- As of Feb. 3, 2026, shares of AXT were priced at $19.74, up 853.6% over the past year, outperforming the S&P 500 by 838.2 percentage points.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close February 3, 2026) | $19.74 |
| Market capitalization | $1.09 billion |
| Revenue (TTM) | $90.4 million |
| Net income (TTM) | ($25.0 million) |
Company snapshot
- Produces compound and single-element semiconductor substrates, including indium phosphide, gallium arsenide, and germanium, primarily for applications in data center connectivity, 5G communications, fiber optics, solar cells, RF, and infrared sensing.
- Generates revenue through the design, manufacturing, and global distribution of advanced semiconductor substrates using proprietary vertical gradient freeze technology.
- Serves customers in the technology, telecommunications, industrial, and aerospace sectors, with a sales presence in the United States, China, Europe, Japan, Taiwan, and Korea.
AXT is a technology company specializing in the development and production of high-performance semiconductor substrates for a broad range of advanced electronic and photonic applications. Leveraging proprietary manufacturing processes, it delivers critical materials to leading global customers in rapidly evolving markets, including data communications, 5G, and industrial sensing.
What this transaction means for investors
Pacific Ridge Capital Partners holds several positions in small-cap companies. The complete sale of its stake in AXT comes after a monster rally in the stock last year.
AXT experienced one setback in the third quarter last year with a $0.5 million decrease in revenue in its Asia Pacific region. This stemmed from China’s export restrictions on the company’s wafer substrates. So despite the stock’s run, the growth story here isn’t bulletproof against potential headwinds.
Still, AXT has seen a turnaround in revenue growth. Revenue in the third quarter jumped 18% year over year, and analysts anticipate revenue will close 2025 at $94 million, then increase to $124 million in 2026. This shows the company is capitalizing on data center demand for specialized materials such as indium phosphide (InP), which powers components that move data between large clusters of chips for artificial intelligence (AI) workloads.
The firm also reduced positions in several other top holdings, including Natural Gas Services (NGS), Heritage Insurance (HRTG), and Alico (ALCO), in the quarter. These stocks also had nice runs last year, suggesting that Pacific Ridge likes to find undervalued small caps before the market catches on.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Build-A-Bear Workshop. The Motley Fool has a disclosure policy.
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