Axos Financial (NYSE:AX) Issues Quarterly Earnings Results, Beats Expectations By $0.12 EPS

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 data on Wednesday. The company reported $1.94 EPS for the quarter, beating the consensus estimate of $1.82 by $0.12, Zacks reports. Axos Financial had a return on equity of 17.11% and a net margin of 22.24%. The company had revenue of $321.45 million for the quarter, compared to analyst estimates of $311.73 million. During the same period last year, the company posted $1.83 earnings per share. The firm's revenue was up 10.5% compared to the same quarter last year.

Axos Financial Stock Performance

AX stock traded down $1.97 during midday trading on Friday, reaching $84.38. The company had a trading volume of 537,504 shares, compared to its average volume of 342,041. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.17. The stock has a 50 day moving average price of $77.92 and a 200 day moving average price of $70.31. Axos Financial has a fifty-two week low of $54.46 and a fifty-two week high of $88.46. The firm has a market capitalization of $4.76 billion, a PE ratio of 11.31 and a beta of 1.32.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on AX shares. Wall Street Zen lowered Axos Financial from a "hold" rating to a "sell" rating in a research report on Saturday, July 5th. Needham & Company LLC lifted their target price on Axos Financial from $92.00 to $102.00 and gave the stock a "buy" rating in a research report on Thursday. Keefe, Bruyette & Woods lifted their target price on Axos Financial from $90.00 to $94.00 and gave the stock a "market perform" rating in a research report on Thursday. DA Davidson lifted their price target on Axos Financial from $96.00 to $100.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Piper Sandler decreased their price target on Axos Financial from $84.00 to $80.00 and set an "overweight" rating for the company in a research note on Thursday, May 1st. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and five have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $90.86.

Axos Financial declared that its Board of Directors has approved a share buyback plan on Monday, May 12th that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to purchase up to 2.5% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other Axos Financial news, Director Paul Grinberg sold 30,000 shares of Axos Financial stock in a transaction that occurred on Monday, May 5th. The stock was sold at an average price of $68.09, for a total value of $2,042,700.00. Following the completion of the transaction, the director directly owned 113,295 shares in the company, valued at $7,714,256.55. The trade was a 20.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 5.07% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Axos Financial

A number of hedge funds and other institutional investors have recently bought and sold shares of AX. United Services Automobile Association acquired a new position in shares of Axos Financial during the first quarter worth approximately $212,000. 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, 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. 83.79% of the stock is currently owned by institutional investors and hedge funds.

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.