Axon Enterprise (NASDAQ:AXON) Stock Price Down 5% - Should You Sell?

Key Points

• Axon Enterprise's share price dropped 5% on Tuesday, trading as low as $772.45, with a significant decline in trading volume, down 62% from the average.
• Despite the stock's recent decline, various brokerages continue to show confidence, with most analysts giving a “Moderate Buy” rating and a consensus price target of $837.69.
• Insider trading activity has been notable, with recent sales by executives leading to a combined reduction of insider ownership by over 13%.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report)'s share price dropped 5% on Tuesday . The company traded as low as $772.45 and last traded at $777.71. Approximately 267,731 shares changed hands during trading, a decline of 62% from the average daily volume of 705,951 shares. The stock had previously closed at $818.69.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on AXON. Raymond James Financial reaffirmed an "outperform" rating and set a $855.00 target price (up from $645.00) on shares of Axon Enterprise in a research report on Tuesday, August 5th. Needham & Company LLC set a $870.00 price objective on Axon Enterprise and gave the stock a "buy" rating in a report on Tuesday, August 5th. Northland Securities set a $800.00 price objective on Axon Enterprise in a report on Tuesday, August 5th. Bank of America boosted their target price on Axon Enterprise from $895.00 to $1,000.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, Wolfe Research started coverage on Axon Enterprise in a research report on Monday, July 7th. They set an "outperform" rating on the stock. Two equities research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $837.69.

Axon Enterprise Trading Down 6.0%

The firm has a market capitalization of $60.38 billion, a PE ratio of 189.92, a price-to-earnings-growth ratio of 30.92 and a beta of 1.36. The company's 50-day simple moving average is $775.48 and its 200 day simple moving average is $666.90. The company has a quick ratio of 2.71, a current ratio of 2.95 and a debt-to-equity ratio of 0.63.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The biotechnology company reported $2.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.54 by $0.58. The firm had revenue of $668.54 million during the quarter, compared to analysts' expectations of $641.77 million. Axon Enterprise had a return on equity of 6.80% and a net margin of 13.64%. The company's revenue for the quarter was up 32.6% compared to the same quarter last year. During the same period last year, the business posted $1.20 earnings per share. As a group, sell-side analysts expect that Axon Enterprise, Inc will post 5.8 EPS for the current year.

Insiders Place Their Bets

In related news, CRO Cameron Brooks sold 3,000 shares of the company's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $740.76, for a total transaction of $2,222,280.00. Following the sale, the executive directly owned 19,447 shares in the company, valued at approximately $14,405,559.72. This represents a 13.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Michael Garnreiter sold 5,913 shares of the company's stock in a transaction that occurred on Wednesday, June 4th. The shares were sold at an average price of $760.00, for a total value of $4,493,880.00. Following the sale, the director directly owned 17,740 shares of the company's stock, valued at approximately $13,482,400. This represents a 25.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 21,585 shares of company stock valued at $16,100,838. 5.70% of the stock is owned by company insiders.

Institutional Investors Weigh In On Axon Enterprise

Hedge funds have recently modified their holdings of the stock. Capital World Investors lifted its holdings in Axon Enterprise by 86.4% in the fourth quarter. Capital World Investors now owns 1,815,765 shares of the biotechnology company's stock worth $1,079,145,000 after acquiring an additional 841,772 shares during the last quarter. Vestor Capital LLC raised its position in shares of Axon Enterprise by 438,636.3% during the 2nd quarter. Vestor Capital LLC now owns 833,599 shares of the biotechnology company's stock worth $690,170,000 after buying an additional 833,409 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Axon Enterprise by 58,725.5% during the 1st quarter. GAMMA Investing LLC now owns 764,731 shares of the biotechnology company's stock worth $402,210,000 after buying an additional 763,431 shares in the last quarter. Jennison Associates LLC raised its position in shares of Axon Enterprise by 23,203.7% during the 1st quarter. Jennison Associates LLC now owns 614,053 shares of the biotechnology company's stock worth $322,961,000 after buying an additional 611,418 shares in the last quarter. Finally, Nuveen LLC bought a new stake in shares of Axon Enterprise during the 1st quarter worth about $264,796,000. 79.08% of the stock is currently owned by hedge funds and other institutional investors.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence.

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