Key Points
- CEO Patrick Smith sold 9,930 Axon shares for approximately $5.45 million at an average price of $548.77 under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by just 0.33%, leaving him with more than 3 million shares.
- Axon exceeded quarterly expectations: earnings were $1.88 per share versus the $1.84 consensus, while revenue rose 35.3% year over year to $904.4 million, above estimates.
- Analysts remain broadly positive, but valuation is elevated. The stock has a “Moderate Buy” consensus rating and a $730.92 average price target, while its P/E ratio of 264.03 highlights significant valuation risk.
Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) CEO Patrick Smith sold 9,930 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $548.77, for a total transaction of $5,449,286.10. Following the sale, the chief executive officer owned 3,031,067 shares in the company, valued at approximately $1,663,358,637.59. The trade was a 0.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Axon Enterprise Price Performance
Shares of AXON opened at $636.31 on Wednesday. Axon Enterprise, Inc has a twelve month low of $339.01 and a twelve month high of $824.66. The company has a market capitalization of $51.69 billion, a P/E ratio of 264.03, a price-to-earnings-growth ratio of 12.17 and a beta of 1.39. The firm has a 50 day moving average of $519.11 and a 200 day moving average of $473.46. The company has a quick ratio of 1.80, a current ratio of 2.15 and a debt-to-equity ratio of 0.47.
Axon Enterprise (NASDAQ:AXON - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.84 by $0.04. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.The business had revenue of $904.39 million for the quarter, compared to analysts' expectations of $876.42 million. During the same period in the prior year, the firm posted $2.12 EPS. The firm's quarterly revenue was up 35.3% on a year-over-year basis. As a group, equities research analysts anticipate that Axon Enterprise, Inc will post 1.63 earnings per share for the current fiscal year.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently bought and sold shares of the company. Creative Financial Designs Inc. ADV purchased a new stake in shares of Axon Enterprise during the 4th quarter valued at about $28,000. Sound Income Strategies LLC boosted its holdings in shares of Axon Enterprise by 550.0% in the fourth quarter. Sound Income Strategies LLC now owns 52 shares of the biotechnology company's stock worth $30,000 after buying an additional 44 shares during the last quarter. Camelot Portfolios LLC purchased a new position in shares of Axon Enterprise in the fourth quarter worth approximately $30,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Axon Enterprise in the second quarter worth approximately $31,000. Finally, AlphaCentric Advisors LLC bought a new stake in Axon Enterprise during the fourth quarter valued at approximately $34,000. 79.08% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets
Several equities research analysts recently commented on the company. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Axon Enterprise in a research report on Tuesday, July 21st. TD Cowen restated a "buy" rating on shares of Axon Enterprise in a research note on Wednesday, July 22nd. JPMorgan Chase & Co. raised their price target on shares of Axon Enterprise from $750.00 to $755.00 and gave the company an "overweight" rating in a report on Thursday, May 7th. Morgan Stanley lifted their price target on shares of Axon Enterprise from $600.00 to $640.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Finally, Needham & Company LLC reissued a "buy" rating on shares of Axon Enterprise in a report on Thursday, August 6th. Thirteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $730.92.
Get Our Latest Stock Report on Axon Enterprise
More Axon Enterprise News
Here are the key news stories impacting Axon Enterprise this week:
- Positive Sentiment: Earnings beat supports the rally: Axon reported quarterly earnings of $1.88 per share versus the $1.84 consensus estimate, while revenue of $904.4 million exceeded expectations of $876.4 million. Revenue increased 35.3% year over year, reinforcing the company’s strong demand across connected public-safety hardware and software. Axon Jumps After Earnings Beat and Analyst Target Hikes
- Positive Sentiment: Analyst support and future catalysts: Analyst target increases and the post-earnings rebound have improved sentiment, with investors awaiting the next potential growth catalyst. The company’s expanding product ecosystem and strong top-line growth remain central to the bullish case. Analyst Target Hikes and Next Catalyst
- Neutral Sentiment: Short-interest data provides no signal: Reported short interest was zero shares, with a zero-day days-to-cover ratio. Because the figures show no meaningful short position, they are unlikely to explain the stock’s move or provide useful evidence of future buying pressure.
- Negative Sentiment: Valuation remains demanding: Commentary highlights Axon’s strong growth but also its high valuation, while another analyst downgraded the stock and suggested taking some profits. The shares trade at a very high earnings multiple, leaving them vulnerable if growth or profitability disappoints. Axon Rating Downgrade
- Negative Sentiment: Margin pressure and insider selling temper enthusiasm: Investors remain focused on memory costs and counter-drone hardware expenses, which may constrain margins as Axon invests for growth. CEO Patrick W. Smith also sold approximately $5.5 million of shares under a pre-arranged Rule 10b5-1 plan, though the sale represented only about 0.33% of his holdings.
About Axon Enterprise
(
Get Free Report)
Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company's hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.
Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.
Further Reading
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