Axon Enterprise (NASDAQ:AXON) Stock Dropped to Hold by Craig Hallum

Key Points

• Craig Hallum downgraded Axon from Buy to Hold and set a $390 price target, implying about 1.9% upside from the stock’s price at the time of the report.
• Axon shares fell 9.8%; the company’s latest quarter missed analyst expectations, with adjusted EPS of $1.72 versus $1.89 expected and revenue of $908.55 million versus roughly $934 million expected.
• Despite the downgrade and earnings miss, analyst sentiment overall remained “Moderate Buy,” with an average price target of $645.88; Axon reported year-over-year revenue growth of 27.8%.

Axon Enterprise (NASDAQ:AXON - Get Free Report) was downgraded by Craig Hallum from a "buy" rating to a "hold" rating in a research note issued to investors on Friday, Briefing.com reports. They presently have a $390.00 price objective on the biotechnology company's stock. Craig Hallum's price target would suggest a potential upside of 1.94% from the stock's current price.

Several other research firms have also commented on AXON. Zacks Research lowered Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Raymond James Financial set a $675.00 price target on Axon Enterprise in a research note on Thursday, October 15th. Piper Sandler lowered their price target on Axon Enterprise from $732.00 to $561.00 and set an "overweight" rating for the company in a report on Tuesday, October 20th. TD Cowen lowered their price target on Axon Enterprise from $825.00 to $800.00 and set a "buy" rating for the company in a report on Monday, October 26th. Finally, Barclays upped their price objective on shares of Axon Enterprise from $523.00 to $688.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Thirteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, Axon Enterprise currently has an average rating of "Moderate Buy" and an average price target of $645.88.

Axon Enterprise Stock Down 9.8%

AXON stock opened at $382.56 on Friday. The company has a 50 day moving average price of $447.49 and a two-hundred day moving average price of $476.73. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.80 and a current ratio of 2.15. The stock has a market capitalization of $31.08 billion, a P/E ratio of 158.74, a PEG ratio of 8.06 and a beta of 1.48. Axon Enterprise has a one year low of $339.01 and a one year high of $665.07.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last issued its quarterly earnings results on Friday, November 6th. The biotechnology company reported $1.72 earnings per share for the quarter, missing analysts' consensus estimates of $1.89 by ($0.17). Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%. The business had revenue of $908.55 million for the quarter, compared to analysts' expectations of $934.33 million. During the same period in the prior year, the company earned $1.17 EPS. The company's revenue for the quarter was up 27.8% compared to the same quarter last year. As a group, sell-side analysts expect that Axon Enterprise will post 2.10 EPS for the current year.

Insider Activity at Axon Enterprise

In other news, insider Isaiah Fields sold 1,017 shares of the company's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $480.45, for a total transaction of $488,617.65. Following the completion of the sale, the insider directly owned 56,264 shares in the company, valued at $27,032,038.80. This represents a 1.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joshua Isner sold 16,775 shares of the stock in a transaction on Monday, August 31st. The stock was sold at an average price of $574.43, for a total value of $9,636,063.25. Following the completion of the transaction, the president directly owned 296,974 shares in the company, valued at $170,590,774.82. This trade represents a 5.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 37,397 shares of company stock valued at $21,234,034 over the last quarter. 4.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Axon Enterprise

A number of large investors have recently modified their holdings of the company. Keating Financial Advisory Services Inc. acquired a new position in Axon Enterprise in the 2nd quarter worth approximately $31,000. Washington Trust Advisors Inc. boosted its stake in shares of Axon Enterprise by 1,300.0% during the 2nd quarter. Washington Trust Advisors Inc. now owns 70 shares of the biotechnology company's stock valued at $39,000 after buying an additional 65 shares during the period. M & L Capital Management Ltd purchased a new position in shares of Axon Enterprise during the 3rd quarter valued at $30,000. Wealth Enhancement Trust Services Inc. acquired a new position in shares of Axon Enterprise in the third quarter worth $33,000. Finally, Delos Wealth Advisors LLC acquired a new position in shares of Axon Enterprise in the second quarter worth $45,000. 79.08% of the stock is currently owned by hedge funds and other institutional investors.

Key Axon Enterprise News

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

• Positive Sentiment: Axon reported record Q3 revenue of $909 million, up 28% year over year. Drone-as-First-Responder revenue grew 43%, Platform Solutions revenue rose 106%, and AI annual recurring revenue surpassed $100 million. Net income was $57 million, versus a loss a year earlier, while adjusted EBITDA increased 33%. Read More.
• Neutral Sentiment: Axon committed an additional $1.2 billion to Skydio, bringing its stake to 37%, and became Skydio’s exclusive public-safety distributor in the U.S. and Canada. The move strengthens Axon’s drone strategy, but the large investment also raises questions about capital allocation and the time needed for returns. Read More.
• Negative Sentiment: Q3 adjusted earnings of $1.72 per share and revenue of $908.55 million missed analyst estimates of $1.89 and roughly $934 million, respectively. Although revenue grew year over year, the miss is a concern for a high-growth, premium-valued stock. Read More.
• Negative Sentiment: The outlook was weaker than expected: Axon forecast Q4 revenue of $990 million–$1 billion versus consensus near $1.1 billion, and FY 2026 revenue of $3.6 billion versus about $3.7 billion. Reports also cite delays in federal drone business as a factor behind investor concerns. Read More.
• Negative Sentiment: Axon faces a class-action lawsuit over its AI-powered license-plate surveillance network, adding legal and reputational risk. Read More.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops technology and connected products for public safety organizations. The company's portfolio includes TASER conducted-energy weapons, body-worn cameras, in-car cameras, and related hardware designed to support law enforcement, corrections, security, and other emergency-response professionals.

Axon also provides cloud-based software for managing digital evidence, records, workflows, real-time operations, investigations, and communications. Its platform is intended to connect hardware, software, and services across the public-safety ecosystem, helping agencies collect, store, analyze, and share operational information.

The company was founded in 1993 as TASER International by Rick Smith and Tom Smith and adopted the name Axon Enterprise in 2017 as it expanded beyond conducted-energy weapons into a broader technology platform.

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