Axos Financial (NYSE:AX) Issues Earnings Results

Key Points

• AXOS FINANCIAL reported quarterly earnings of $1.94 per share, exceeding estimates by $0.10 and showing a 10.5% increase in revenue compared to the previous year.
• The company has initiated a $100 million share repurchase program, indicating confidence in its stock's value.
• Despite the positive earnings report, brokerage ratings are mixed, with one downgrade to "sell," while others maintain a "buy" or "hold" rating.

Axos Financial (NYSE:AX - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $1.94 EPS for the quarter, beating the consensus estimate of $1.82 by $0.12, Zacks reports. The firm had revenue of $321.45 million for the quarter, compared to analyst estimates of $311.73 million. Axos Financial had a net margin of 22.24% and a return on equity of 17.11%. The business's revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.83 EPS.

Axos Financial Stock Down 2.3%

Shares of Axos Financial stock traded down $1.97 during trading hours on Friday, reaching $84.38. 537,504 shares of the company were exchanged, compared to its average volume of 342,041. Axos Financial has a 1 year low of $54.46 and a 1 year high of $88.46. The stock's fifty day moving average is $77.92 and its 200 day moving average is $70.31. The company has a debt-to-equity ratio of 0.17, a quick ratio of 1.09 and a current ratio of 1.09. The firm has a market cap of $4.76 billion, a PE ratio of 11.31 and a beta of 1.32.

Axos Financial announced that its board has authorized a share repurchase program on Monday, May 12th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to reacquire up to 2.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Raymond James Financial reissued an "outperform" rating and issued a $95.00 target price (up previously from $90.00) on shares of Axos Financial in a research report on Thursday. Jefferies Financial Group assumed coverage on Axos Financial in a research report on Wednesday, May 21st. They issued a "buy" rating and a $90.00 target price on the stock. Needham & Company LLC boosted their target price on Axos Financial from $92.00 to $102.00 and gave the company a "buy" rating in a research report on Thursday. DA Davidson boosted their target price on Axos Financial from $96.00 to $100.00 and gave the company a "buy" rating in a research report on Thursday. Finally, Keefe, Bruyette & Woods boosted their target price on Axos Financial from $90.00 to $94.00 and gave the company a "market perform" rating in a research report on Thursday. Three analysts have rated the stock with a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $90.86.

Insider Buying and Selling at Axos Financial

In related news, Director Paul Grinberg sold 30,000 shares of the business's stock in a transaction on Monday, May 5th. The shares were sold at an average price of $68.09, for a total transaction of $2,042,700.00. Following the completion of the transaction, the director owned 113,295 shares in the company, valued at approximately $7,714,256.55. The trade was a 20.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Corporate insiders own 5.07% of the company's stock.

Hedge Funds Weigh In On Axos Financial

A number of institutional investors and hedge funds have recently modified their holdings of the company. Royal Bank of Canada raised its holdings in Axos Financial by 0.9% during the first quarter. Royal Bank of Canada now owns 108,986 shares of the company's stock worth $7,031,000 after purchasing an additional 1,015 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Axos Financial by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,539 shares of the company's stock worth $2,099,000 after purchasing an additional 1,429 shares in the last quarter. Finally, United Services Automobile Association purchased a new position in Axos Financial during the first quarter worth about $212,000. Institutional investors and hedge funds own 83.79% of the company's stock.

About Axos Financial

Axos Financial, Inc, together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts.