Axon Enterprise (NASDAQ:AXON) Shares Down 6.5% Following Insider Selling

Axon Enterprise, Inc (NASDAQ:AXON)’s stock price dropped 6.5% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $594.20 and last traded at $595.21. 675,482 shares were traded during mid-day trading, a decline of 37% from the average session volume of 1,080,265 shares. The stock had previously closed at $636.31.

Specifically, CEO Patrick W. Smith sold 9,930 shares of Axon Enterprise stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $548.77, for a total transaction of $5,449,286.10. Following the transaction, the chief executive officer owned 3,031,067 shares of the company’s stock, valued at $1,663,358,637.59. The trade was a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Patrick W. Smith sold 70 shares of the stock in a transaction that occurred on Friday, August 7th. The shares were sold at an average price of $566.62, for a total value of $39,663.40. Following the completion of the sale, the chief executive officer directly owned 3,030,997 shares of the company’s stock, valued at $1,717,423,520.14. The trade was a 0.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on AXON. Morgan Stanley lifted their target price on shares of Axon Enterprise from $600.00 to $640.00 and gave the company an “overweight” rating in a report on Thursday, August 6th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Axon Enterprise in a report on Wednesday, August 5th. Needham & Company LLC restated a “buy” rating on shares of Axon Enterprise in a research report on Thursday, August 6th. TD Cowen reaffirmed a “buy” rating on shares of Axon Enterprise in a research report on Wednesday, July 22nd. Finally, UBS Group boosted their target price on Axon Enterprise from $440.00 to $600.00 and gave the company a “neutral” rating in a report on Thursday, August 6th. Thirteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $730.92.

Key Headlines Impacting Axon Enterprise

Here are the key news stories impacting Axon Enterprise this week:

• Positive Sentiment: Connected devices remain a growth engine: TASER devices, body cameras and counter-drone equipment are driving strong momentum in Axon’s Connected Devices segment, supporting continued demand for the company’s public-safety ecosystem. Will Strength in Connected Devices Unit Continue to Drive AXON’s Growth?
• Positive Sentiment: AI and earnings support the bullish case: New artificial-intelligence capabilities and Axon’s software-and-hardware platform are viewed as long-term catalysts. Recent quarterly results also exceeded expectations, with earnings of $1.88 per share versus $1.84 expected and revenue of $904.4 million versus $876.4 million, up 35.3% year over year. Axon Public Safety Boosted by New AI Capabilities
• Neutral Sentiment: Technical consolidation follows a strong uptrend: Technical commentary says AXON is consolidating after a substantial advance, leaving investors focused on whether momentum can resume or the rally is losing steam. Stock of the Day: Is the Axon Rally Over?
• Negative Sentiment: Valuation creates downside risk: Analysts acknowledge Axon’s strong growth but caution that its very high earnings multiple leaves little room for execution disappointments. Recent commentary included a downgrade and a recommendation to take some profits, weighing on sentiment. Axon Enterprise Q2 Was Strong but Not a Buyer
• Negative Sentiment: Margins and insider selling are additional overhangs: Rising memory costs and expenses tied to counter-drone hardware could pressure profitability as Axon invests for growth. CEO Patrick Smith sold approximately $5.45 million of shares under a pre-arranged Rule 10b5-1 plan; the sale was relatively small at 0.33% of his holdings but may reinforce profit-taking concerns. Axon CEO Patrick Smith Sells 9,930 Shares

Axon Enterprise Price Performance

The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47. The stock has a fifty day simple moving average of $519.11 and a two-hundred day simple moving average of $473.46. The company has a market cap of $48.35 billion, a PE ratio of 246.98, a price-to-earnings-growth ratio of 12.17 and a beta of 1.39.

Axon Enterprise (NASDAQ:AXON) last posted its quarterly earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 EPS for the quarter, beating the consensus estimate of $1.84 by $0.04. The business had revenue of $904.39 million during the quarter, compared to analysts’ expectations of $876.42 million. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.During the same period last year, the firm earned $2.12 EPS. The company’s quarterly revenue was up 35.3% compared to the same quarter last year. On average, equities analysts predict that Axon Enterprise, Inc will post 1.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Axon Enterprise

A number of large investors have recently made changes to their positions in the stock. Evolve Private Wealth LLC acquired a new stake in shares of Axon Enterprise in the second quarter valued at about $674,000. George Kaiser Family Foundation purchased a new position in Axon Enterprise in the second quarter valued at about $423,000. Landscape Capital Management L.L.C. purchased a new position in Axon Enterprise in the second quarter valued at about $1,257,000. Korea Investment CORP acquired a new stake in shares of Axon Enterprise during the 2nd quarter valued at approximately $21,562,000. Finally, Rakuten Securities Inc. purchased a new stake in shares of Axon Enterprise during the 2nd quarter worth approximately $247,000. Hedge funds and other institutional investors own 79.08% of the company’s stock.

Axon Enterprise Company Profile

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.