AXT Inc's stock plummeted 7.93% intraday, as the company faces significant selling pressure driven by investor concerns over a dilutive capital raise and ongoing insider disposals.

The pressure stems from AXT's recently announced public offering of approximately 8.6 million shares at $64.25 per share, aiming to raise roughly $550 million. The offering price represents a substantial discount to the stock's pre-announcement trading level, amplifying fears of shareholder dilution. The proceeds are intended to support its Beijing Tongmei Crystal Technology subsidiary and for general corporate purposes.

Compounding the negative sentiment, multiple company executives and directors have been reducing their holdings in recent weeks, further eroding market confidence. The average analyst target price for the stock remains significantly below the current trading level, which has encouraged profit-taking among investors.