Axon Enterprise (NASDAQ:AXON) Stock Price Down 5.9% - Time to Sell?

Key Points

• Axon Enterprise's stock price fell by 5.9%, closing at $731.56, with trading volume at approximately 394,213 shares, which is a 42% decrease from its average volume.
• Despite the recent decline, analysts remain optimistic, rating Axon as a "Moderate Buy" with an average price target of $841.64 after recent upgrades from several research firms.
• Axon reported a significant quarterly earnings beat, with $2.12 EPS against an estimate of $1.54, and a revenue increase of 32.6% year-over-year to $668.54 million.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) shares dropped 5.9% on Wednesday . The company traded as low as $727.04 and last traded at $731.56. Approximately 394,213 shares changed hands during trading, a decline of 42% from the average daily volume of 681,522 shares. The stock had previously closed at $777.58.

Wall Street Analyst Weigh In

Several research firms have commented on AXON. Piper Sandler began coverage on shares of Axon Enterprise in a report on Tuesday. They issued an "overweight" rating and a $893.00 price objective on the stock. JPMorgan Chase & Co. upped their price target on shares of Axon Enterprise from $730.00 to $850.00 and gave the company an "overweight" rating in a research note on Thursday, July 17th. Morgan Stanley set a $885.00 price target on shares of Axon Enterprise and gave the company an "overweight" rating in a research note on Friday, July 11th. Needham & Company LLC reaffirmed a "buy" rating and set a $870.00 price objective on shares of Axon Enterprise in a research report on Wednesday. Finally, Bank of America upped their price objective on shares of Axon Enterprise from $895.00 to $1,000.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $841.64.

Axon Enterprise Trading Down 6.4%

The firm's 50-day moving average is $761.12 and its 200-day moving average is $698.98. The company has a current ratio of 2.95, a quick ratio of 2.71 and a debt-to-equity ratio of 0.63. The firm has a market cap of $57.11 billion, a price-to-earnings ratio of 179.64, a P/E/G ratio of 28.48 and a beta of 1.40.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last posted its quarterly earnings results on Monday, August 4th. The biotechnology company reported $2.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.54 by $0.58. Axon Enterprise had a net margin of 13.64% and a return on equity of 6.80%. The business had revenue of $668.54 million during the quarter, compared to the consensus estimate of $641.77 million. During the same quarter last year, the firm posted $1.20 EPS. Axon Enterprise's revenue was up 32.6% compared to the same quarter last year. Axon Enterprise has set its FY 2025 guidance at EPS. As a group, sell-side analysts anticipate that Axon Enterprise, Inc will post 5.8 EPS for the current fiscal year.

Insider Buying and Selling at Axon Enterprise

In other news, CEO Patrick W. Smith sold 10,000 shares of Axon Enterprise stock in a transaction on Monday, August 11th. The stock was sold at an average price of $831.29, for a total transaction of $8,312,900.00. Following the sale, the chief executive officer directly owned 3,053,982 shares in the company, valued at $2,538,744,696.78. The trade was a 0.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Brittany Bagley sold 870 shares of Axon Enterprise stock in a transaction on Monday, September 15th. The stock was sold at an average price of $773.25, for a total value of $672,727.50. Following the sale, the chief financial officer owned 113,022 shares in the company, valued at $87,394,261.50. The trade was a 0.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 44,932 shares of company stock worth $34,408,816. 5.70% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Axon Enterprise

Several large investors have recently added to or reduced their stakes in the company. Caldwell Trust Co purchased a new stake in Axon Enterprise in the 2nd quarter worth about $530,000. Canal Capital Management LLC purchased a new position in Axon Enterprise during the 2nd quarter valued at about $265,000. Valeo Financial Advisors LLC grew its holdings in Axon Enterprise by 4.0% during the 2nd quarter. Valeo Financial Advisors LLC now owns 987 shares of the biotechnology company's stock valued at $817,000 after buying an additional 38 shares in the last quarter. Q3 Asset Management purchased a new position in Axon Enterprise during the 2nd quarter valued at about $728,000. Finally, Total Investment Management Inc. purchased a new position in Axon Enterprise during the 2nd quarter valued at about $84,000. Hedge funds and other institutional investors own 79.08% of the company's stock.

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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