Axon Enterprise (NASDAQ:AXON) Trading Up 6.4% - Still a Buy?

Key Points

• Axon Enterprise shares rose 6.4% in Tuesday trading, reaching as high as $432.60, though volume was far below normal at about 97,849 shares versus the average of more than 1.07 million.
• Analyst sentiment remains broadly positive despite some target cuts: the stock has a Moderate Buy consensus with an average price target of $712.75, and firms like Craig Hallum and Piper Sandler reiterated bullish ratings.
• Recent results were strong, with Axon reporting Q1 revenue of $807.35 million, up 33.7% year over year, and EPS of $1.61, slightly above estimates; however, insiders have also been selling shares recently.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) was up 6.4% during mid-day trading on Tuesday . The company traded as high as $432.60 and last traded at $436.4450. Approximately 97,849 shares traded hands during trading, a decline of 91% from the average daily volume of 1,079,736 shares. The stock had previously closed at $410.03.

Wall Street Analyst Weigh In

Several research firms recently commented on AXON. Craig Hallum reaffirmed a "buy" rating and issued a $820.00 price objective on shares of Axon Enterprise in a research report on Wednesday, February 25th. Citizens Jmp lowered their target price on Axon Enterprise from $825.00 to $700.00 and set a "market outperform" rating for the company in a report on Thursday, May 7th. UBS Group dropped their price target on Axon Enterprise from $570.00 to $440.00 and set a "neutral" rating on the stock in a research note on Thursday, May 7th. Piper Sandler restated an "overweight" rating and issued a $674.00 price target on shares of Axon Enterprise in a report on Monday, June 15th. Finally, Zacks Research raised Axon Enterprise from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $712.75.

Axon Enterprise Price Performance

The business has a fifty day moving average of $414.43 and a 200 day moving average of $484.39. The firm has a market cap of $34.95 billion, a P/E ratio of 173.74, a PEG ratio of 7.70 and a beta of 1.45. The company has a quick ratio of 1.93, a current ratio of 2.27 and a debt-to-equity ratio of 0.49.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The biotechnology company reported $1.61 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to analyst estimates of $778.90 million. During the same quarter in the prior year, the company earned $1.47 earnings per share. The business's revenue for the quarter was up 33.7% compared to the same quarter last year. On average, sell-side analysts anticipate that Axon Enterprise, Inc will post 1.82 earnings per share for the current year.

Insiders Place Their Bets

In other Axon Enterprise news, CRO Cameron Brooks sold 1,242 shares of Axon Enterprise 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 completion of the transaction, the executive directly owned 49,710 shares of the company's stock, valued at $24,855,000. The trade was a 2.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 on Friday, June 5th. The shares were sold at an average price of $488.45, for a total transaction of $6,349,850.00. Following the completion of the transaction, the president owned 169,125 shares in the company, valued at approximately $82,609,106.25. This represents a 7.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 38,989 shares of company stock worth $19,090,083 in the last quarter. Company insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC bought a new position in shares of Axon Enterprise during the fourth quarter worth approximately $480,000. NewEdge Advisors LLC grew its holdings in Axon Enterprise by 41.1% in the 1st quarter. NewEdge Advisors LLC now owns 2,294 shares of the biotechnology company's stock valued at $1,207,000 after buying an additional 668 shares in the last quarter. Empowered Funds LLC grew its holdings in Axon Enterprise by 8.4% in the 1st quarter. Empowered Funds LLC now owns 2,028 shares of the biotechnology company's stock valued at $1,067,000 after buying an additional 157 shares in the last quarter. Woodline Partners LP increased its position in Axon Enterprise by 40.6% during the 1st quarter. Woodline Partners LP now owns 6,932 shares of the biotechnology company's stock worth $3,646,000 after buying an additional 2,003 shares during the period. Finally, Sivia Capital Partners LLC acquired a new stake in shares of Axon Enterprise during the second quarter worth $284,000. Institutional investors and hedge funds 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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