Axon Enterprise (NASDAQ:AXON) Trading Down 5.4% - Time to Sell?

Key Points

• Axon Enterprise's stock fell by 5.4%, trading at approximately $666.74, with trading volume down by 55% compared to its average.
• Despite the recent decline, Wall Street analysts maintain a positive outlook, with a consensus price target of $841.64 and fourteen analysts recommending a Buy rating.
• The company reported a 32.6% increase in quarterly revenue year-over-year, reaching $668.54 million, along with strong earnings per share of $2.12, exceeding expectations.

Shares of Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) were down 5.4% on Wednesday . The stock traded as low as $666.00 and last traded at $666.74. Approximately 301,015 shares were traded during mid-day trading, a decline of 55% from the average daily volume of 671,214 shares. The stock had previously closed at $704.67.

Wall Street Analysts Forecast Growth

AXON has been the subject of a number of research reports. Piper Sandler initiated coverage on Axon Enterprise in a report on Tuesday, September 23rd. They set an "overweight" rating and a $893.00 target price for the company. Raymond James Financial reaffirmed an "outperform" rating and set a $855.00 target price (up previously from $645.00) on shares of Axon Enterprise in a research note on Tuesday, August 5th. UBS Group reissued a "neutral" rating and issued a $840.00 price objective (up from $820.00) on shares of Axon Enterprise in a research note on Tuesday, August 5th. Zacks Research downgraded Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, September 2nd. Finally, Northland Securities set a $800.00 price objective on Axon Enterprise in a report on Tuesday, August 5th. Fourteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $841.64.

Axon Enterprise Stock Performance

The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.71 and a current ratio of 2.95. The stock's 50-day simple moving average is $751.62 and its 200 day simple moving average is $715.98. The company has a market capitalization of $50.64 billion, a PE ratio of 159.28, a P/E/G ratio of 27.57 and a beta of 1.41.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last issued 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. Axon Enterprise had a net margin of 13.64% and a return on equity of 6.80%. The company had revenue of $668.54 million for the quarter, compared to the consensus estimate of $641.77 million. During the same period last year, the firm posted $1.20 EPS. Axon Enterprise's revenue for the quarter was up 32.6% on a year-over-year basis. Axon Enterprise has set its FY 2025 guidance at EPS. As a group, research analysts expect that Axon Enterprise, Inc will post 5.8 earnings per share for the current fiscal year.

Insider Transactions at Axon Enterprise

In other news, President Joshua Isner sold 15,919 shares of Axon Enterprise stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $746.26, for a total value of $11,879,712.94. Following the transaction, the president owned 238,379 shares of the company's stock, valued at $177,892,712.54. The trade was a 6.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Jennifer H. Mak sold 77 shares of Axon Enterprise stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $760.00, for a total transaction of $58,520.00. Following the completion of the transaction, the chief accounting officer directly owned 15,003 shares in the company, valued at $11,402,280. This represents a 0.51% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 59,932 shares of company stock valued at $45,115,616 over the last ninety days. 5.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Axon Enterprise

Several institutional investors have recently made changes to their positions in the stock. Vestor Capital LLC raised its position in shares of Axon Enterprise by 438,636.3% in the second quarter. Vestor Capital LLC now owns 833,599 shares of the biotechnology company's stock valued at $690,170,000 after purchasing an additional 833,409 shares during the period. Norges Bank bought a new position in shares of Axon Enterprise in the 2nd quarter valued at about $637,806,000. Jennison Associates LLC raised its position in shares of Axon Enterprise by 23,203.7% in the 1st quarter. Jennison Associates LLC now owns 614,053 shares of the biotechnology company's stock valued at $322,961,000 after acquiring an additional 611,418 shares during the period. Nuveen LLC acquired a new stake in Axon Enterprise during the 1st quarter worth approximately $264,796,000. Finally, McElhenny Sheffield Capital Management LLC bought a new position in shares of Axon Enterprise during the 2nd quarter worth approximately $255,833,000. 79.08% of the stock is currently owned by institutional investors and hedge funds.

About Axon Enterprise

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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