Axon Enterprise (NASDAQ:AXON) Shares Up 6.5% - What's Next?

Key Points

• Axon shares jumped 6.5% to about $635.26, bringing the company’s market capitalization to roughly $51.47 billion. Trading volume was about 43% below the average session volume.
• Analysts remain broadly positive, with 13 Buy ratings and three Holds producing a “Moderate Buy” consensus and an average price target of $730.92; recent targets include $755 from JPMorgan and $640 from Morgan Stanley.
• Axon exceeded quarterly expectations, reporting $1.88 in EPS versus $1.84 expected and $904.39 million in revenue, up 35.3% year over year. However, insiders sold nearly $30.5 million of stock over the past 90 days, while institutional investors own 79.08% of shares.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report)'s stock price rose 6.5% during mid-day trading on Tuesday . The stock traded as high as $635.33 and last traded at $635.2620. Approximately 612,121 shares traded hands during trading, a decline of 43% from the average session volume of 1,077,021 shares. The stock had previously closed at $596.33.

Analyst Ratings Changes

A number of equities analysts have recently commented on AXON shares. Citizens Jmp reissued a "market outperform" rating and issued a $700.00 price target on shares of Axon Enterprise in a research report on Thursday, June 25th. UBS Group boosted their price target on shares of Axon Enterprise from $440.00 to $600.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. JPMorgan Chase & Co. increased their price target on shares of Axon Enterprise from $750.00 to $755.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Zacks Research downgraded Axon Enterprise from a "strong-buy" rating to a "hold" rating in a report on Friday, July 10th. Finally, Morgan Stanley increased their target price on Axon Enterprise from $600.00 to $640.00 and gave the stock an "overweight" rating in a report on Thursday. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $730.92.

Axon Enterprise Stock Up 6.2%

The firm has a market capitalization of $51.47 billion, a price-to-earnings ratio of 262.86, a P/E/G ratio of 11.65 and a beta of 1.39. The firm has a fifty day moving average price of $516.19 and a 200 day moving average price of $473.28. The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share for the quarter, beating analysts' consensus estimates of $1.84 by $0.04. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.The firm had revenue of $904.39 million during the quarter, compared to analysts' expectations of $876.42 million. During the same period last year, the firm posted $2.12 EPS. The business's revenue was up 35.3% on a year-over-year basis. Sell-side analysts anticipate that Axon Enterprise, Inc will post 1.63 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Caitlin Elizabeth Kalinowski sold 564 shares of the firm's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $478.97, for a total value of $270,139.08. Following the completion of the sale, the director directly owned 3,632 shares in the company, valued at approximately $1,739,619.04. This trade represents a 13.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Patrick W. Smith sold 10,000 shares of Axon Enterprise stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $643.79, for a total value of $6,437,900.00. Following the completion of the transaction, the chief executive officer directly owned 3,040,997 shares of the company's stock, valued at $1,957,763,458.63. This represents a 0.33% 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 a total of 58,989 shares of company stock valued at $30,527,983 in the last 90 days. 4.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Silvant Capital Management LLC acquired a new position in shares of Axon Enterprise in the 2nd quarter valued at $12,000,000. LaSalle St. Investment Advisors LLC acquired a new stake in Axon Enterprise during the 2nd quarter worth approximately $602,000. Sycale Advisors NY LLC acquired a new stake in shares of Axon Enterprise during the second quarter worth $10,875,000. Advisors Capital Management LLC acquired a new stake in shares of Axon Enterprise in the 2nd quarter valued at about $225,000. Finally, Vise Technologies Inc. acquired a new stake in shares of Axon Enterprise in the second quarter valued at approximately $216,000. Institutional investors own 79.08% of the company's stock.

About Axon Enterprise

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.

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