Axos Financial (NYSE:AX) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Axos Financial from a "strong-buy" to a "hold" rating, according to a report released Wednesday.
• Despite the Zacks downgrade, most analysts remain positive — MarketBeat shows a consensus of "Moderate Buy" (1 Strong Buy, 5 Buy, 2 Hold) with an average price target of $104.50.
• Axos posted a quarterly beat with EPS $2.25 vs. $2.07 expected and revenue of $385.1M (up 25.1% year-over-year), reflecting solid profitability (net margin 22.66% and ROE 16.98%).

Axos Financial (NYSE:AX - Get Free Report) was downgraded by research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Wednesday,Zacks.com reports.

A number of other brokerages also recently commented on AX. DA Davidson lifted their price target on shares of Axos Financial from $107.50 to $112.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Jefferies Financial Group lifted their price target on shares of Axos Financial from $110.00 to $115.00 and gave the stock a "buy" rating in a report on Friday, January 30th. Weiss Ratings reiterated a "buy (b)" rating on shares of Axos Financial in a report on Monday, December 29th. Keefe, Bruyette & Woods lifted their price target on shares of Axos Financial from $100.00 to $110.00 and gave the stock a "market perform" rating in a report on Friday, January 30th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $110.00 price target on shares of Axos Financial in a report on Monday, March 16th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, Axos Financial currently has a consensus rating of "Moderate Buy" and an average price target of $104.50.

Axos Financial Price Performance

Axos Financial stock opened at $93.63 on Wednesday. The stock has a market capitalization of $5.31 billion, a P/E ratio of 11.87 and a beta of 1.26. Axos Financial has a 12-month low of $55.50 and a 12-month high of $101.92. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.08 and a quick ratio of 1.08. The firm's 50-day moving average is $90.41 and its two-hundred day moving average is $86.87.

Axos Financial (NYSE:AX - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The company reported $2.25 EPS for the quarter, topping analysts' consensus estimates of $2.07 by $0.18. The business had revenue of $385.09 million during the quarter, compared to the consensus estimate of $345.89 million. Axos Financial had a net margin of 22.66% and a return on equity of 16.98%. The company's quarterly revenue was up 25.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.82 earnings per share. Equities analysts predict that Axos Financial will post 7.22 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Gregory Garrabrants sold 43,294 shares of the firm's stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $99.10, for a total value of $4,290,435.40. Following the sale, the chief executive officer directly owned 1,418,751 shares of the company's stock, valued at approximately $140,598,224.10. This trade represents a 2.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Derrick Walsh sold 4,846 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $101.21, for a total transaction of $490,463.66. Following the completion of the sale, the executive vice president directly owned 37,936 shares in the company, valued at $3,839,502.56. This represents a 11.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 59,303 shares of company stock valued at $5,908,474. Insiders own 4.85% of the company's stock.

Institutional Investors Weigh In On Axos Financial

Hedge funds have recently modified their holdings of the stock. Salomon & Ludwin LLC acquired a new stake in shares of Axos Financial in the third quarter worth approximately $26,000. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Axos Financial in the fourth quarter worth approximately $26,000. Basepoint Wealth LLC acquired a new stake in shares of Axos Financial in the fourth quarter worth approximately $28,000. Bessemer Group Inc. boosted its position in shares of Axos Financial by 59.6% in the third quarter. Bessemer Group Inc. now owns 348 shares of the company's stock worth $29,000 after acquiring an additional 130 shares during the last quarter. Finally, Brown Brothers Harriman & Co. acquired a new stake in shares of Axos Financial in the third quarter worth approximately $29,000. 83.79% of the stock is owned by institutional investors and hedge funds.

About Axos Financial

Axos Financial, Inc NYSE: AX is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.

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