Axon Enterprise (NASDAQ:AXON) Shares Up 8.9% - Still a Buy?

Key Points

• Axon Enterprise shares jumped 8.9% after trading as high as $505.55, even though volume was well below average. The move extends attention around the stock following recent volatility.
• News that ICE may seek a $220 million Taser-related contract has fueled optimism that Axon could land a major government deal. Reports also noted speculation tied to Trump’s reported Axon stock purchase before the procurement notice.
• Wall Street remains broadly constructive on Axon, with a Moderate Buy consensus and an average price target of $712.75. Recent analysts including JPMorgan and Piper Sandler reaffirmed bullish ratings despite the stock’s already rich valuation.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) shares traded up 8.9% on Monday . The stock traded as high as $505.55 and last traded at $506.3640. Approximately 188,186 shares changed hands during trading, a decline of 83% from the average session volume of 1,084,276 shares. The stock had previously closed at $464.83.

Axon Enterprise News Summary

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

• Positive Sentiment: Trump’s reported purchase of Axon shares ahead of the ICE procurement notice has sparked speculation that the company may benefit from a larger government order pipeline. Trump bought as much as $5 million in Axon stock before ICE sought $220 million Taser deal
• Positive Sentiment: The reported ICE request for about 17,800 Tasers, cartridges, and training services could represent a significant potential contract for Axon if finalized. Trump bought Axon stock before ICE sought $220M Taser contract
• Neutral Sentiment: The headlines have also raised scrutiny around timing and possible conflicts of interest, but there is no indication in these reports that Axon did anything wrong. Trump bought as much as $5 million in Axon stock before ICE sought $220 million Taser deal

Analysts Set New Price Targets

A number of research firms have issued reports on AXON. JPMorgan Chase & Co. boosted their price objective on shares of Axon Enterprise from $750.00 to $755.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Zacks Research raised Axon Enterprise from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 19th. The Goldman Sachs Group set a $535.00 price target on Axon Enterprise in a report on Thursday, May 7th. Piper Sandler reaffirmed an "overweight" rating and set a $674.00 price target on shares of Axon Enterprise in a research report on Monday, June 15th. Finally, Weiss Ratings upgraded Axon Enterprise from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 8th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $712.75.

Axon Enterprise Stock Performance

The company has a 50-day simple moving average of $420.65 and a two-hundred day simple moving average of $481.58. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.93 and a current ratio of 2.27. The firm has a market capitalization of $40.89 billion, a P/E ratio of 203.91, a PEG ratio of 9.48 and a beta of 1.45.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last announced its earnings results on Wednesday, May 6th. The biotechnology company reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.60 by $0.01. Axon Enterprise had a return on equity of 3.78% and a net margin of 6.90%.The firm had revenue of $807.35 million during the quarter, compared to analyst estimates of $778.90 million. During the same quarter in the prior year, the company earned $1.47 EPS. The business's revenue was up 33.7% compared to the same quarter last year. As a group, equities analysts forecast that Axon Enterprise, Inc will post 1.63 EPS for the current year.

Insider Buying and Selling at Axon Enterprise

In other news, CRO Cameron Brooks sold 1,242 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $500.00, for a total transaction of $621,000.00. Following the sale, the executive owned 49,710 shares in the company, valued at approximately $24,855,000. The trade was a 2.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joshua Isner sold 13,000 shares of the company's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $488.45, for a total transaction of $6,349,850.00. Following the completion of the sale, the president directly owned 169,125 shares in the company, valued at $82,609,106.25. This represents a 7.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 38,989 shares of company stock valued at $19,090,083. Company insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Axon Enterprise

Large investors have recently made changes to their positions in the business. Legal & General Group Plc increased its holdings in shares of Axon Enterprise by 1.3% during the fourth quarter. Legal & General Group Plc now owns 426,533 shares of the biotechnology company's stock valued at $242,241,000 after acquiring an additional 5,419 shares in the last quarter. Eurizon Capital SGR S.p.A. bought a new position in Axon Enterprise in the 4th quarter worth about $13,116,000. Wealth Enhancement Advisory Services LLC grew its position in Axon Enterprise by 93.1% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 23,365 shares of the biotechnology company's stock valued at $13,270,000 after purchasing an additional 11,262 shares during the last quarter. Teamwork Financial Advisors LLC increased its stake in Axon Enterprise by 40.5% during the 4th quarter. Teamwork Financial Advisors LLC now owns 25,352 shares of the biotechnology company's stock valued at $14,398,000 after purchasing an additional 7,307 shares in the last quarter. Finally, Clearbridge Investments LLC increased its stake in Axon Enterprise by 21.1% during the 4th quarter. Clearbridge Investments LLC now owns 343,910 shares of the biotechnology company's stock valued at $195,317,000 after purchasing an additional 59,821 shares in the last quarter. 79.08% of the stock is currently owned by hedge funds and other institutional investors.

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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