Axos Financial (NYSE:AX) Stock Price Down 6% After Earnings Miss

Key Points

• Shares fell ~6% intraday after Axos reported Q3 EPS of $1.90 versus a $2.13 consensus (a miss) even though revenue beat at $392.3M; the stock traded as low as $89.66 with volume (~92,278 shares) about 76% below its average.
• Management reiterated growth plans and expects low- to mid‑teens loan growth, citing two large deposit deals — a $2.3B Jenius relationship and a $3.2B Capital One deposit transfer — to support funding and expansion.
• Wall Street remains mostly constructive with an average rating of "Moderate Buy" and a mean target of $109.40, while insiders have sold roughly 59,303 shares (~$5.9M) over the past 90 days.

Axos Financial, Inc (NYSE:AX - Get Free Report)'s share price was down 6% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $89.66 and last traded at $90.6250. Approximately 92,278 shares changed hands during trading, a decline of 76% from the average daily volume of 385,453 shares. The stock had previously closed at $96.44.

The company reported $1.90 earnings per share for the quarter, missing analysts' consensus estimates of $2.13 by ($0.23). Axos Financial had a return on equity of 16.98% and a net margin of 22.66%.The firm had revenue of $392.25 million for the quarter, compared to analyst estimates of $372.51 million. During the same period last year, the business earned $1.81 earnings per share.

Key Axos Financial News

Here are the key news stories impacting Axos Financial this week:

• Positive Sentiment: Management reiterated growth plans and expects low- to mid‑teens loan growth while two large deposit deals progress — a $2.3B Jenius relationship and a $3.2B Capital One deposit transfer — which support funding and growth outlook. Axos projects loan growth & deposit deals
• Positive Sentiment: Top-line beat: revenue of $392.3M topped consensus (~$372.5M), suggesting underlying business activity was stronger than expected. MarketBeat earnings summary
• Neutral Sentiment: Company presentation and full earnings-call transcript are available for detail; these will matter for interpreting one-time items, fee income mix and margin drivers. Investors will parse the slides and call for forward guidance and deposit/margin specifics. Earnings presentation Earnings call transcript
• Negative Sentiment: EPS confusion/miss: several analyst reports (Zacks, MarketBeat) show EPS of $1.90 vs. a $2.13 consensus — a miss that typically triggers downside selling. (The company press release also reported net income growth and a diluted EPS figure cited at $2.15, so differences between GAAP/adjusted or per‑share calculations may have amplified investor uncertainty.) Zacks: misses Q3 estimates Company press release
• Negative Sentiment: Market reaction also reflects technical/valuation pressures: the shares are trading around recent 50‑ and 200‑day moving averages and volume was light versus average, so any earnings miss or mixed message can produce outsized short‑term moves. MarketBeat price & volume data

Wall Street Analyst Weigh In

A number of research analysts have commented on AX shares. Keefe, Bruyette & Woods raised their price target on shares of Axos Financial from $100.00 to $110.00 and gave the stock a "market perform" rating in a research note on Friday, January 30th. Weiss Ratings raised Axos Financial from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, April 24th. DA Davidson raised their target price on Axos Financial from $107.50 to $112.00 and gave the stock a "buy" rating in a research report on Friday, January 30th. Jefferies Financial Group boosted their price target on Axos Financial from $110.00 to $115.00 and gave the company a "buy" rating in a research note on Friday, January 30th. Finally, Needham & Company LLC reiterated a "buy" rating and issued a $110.00 price target on shares of Axos Financial in a research report on Monday, March 16th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Axos Financial currently has an average rating of "Moderate Buy" and an average target price of $109.40.

Insider Activity

In other news, EVP Derrick Walsh sold 4,846 shares of Axos Financial stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $101.21, for a total value of $490,463.66. Following the completion of the transaction, the executive vice president owned 37,936 shares in the company, valued at approximately $3,839,502.56. The trade was a 11.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Gregory Garrabrants sold 43,294 shares of Axos Financial stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $99.10, for a total transaction of $4,290,435.40. Following the completion of the transaction, the chief executive officer owned 1,418,751 shares of the company's stock, valued at $140,598,224.10. This trade represents a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 59,303 shares of company stock worth $5,908,474. Insiders own 4.85% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Horizon Investment Services LLC raised its position in Axos Financial by 297.1% in the 3rd quarter. Horizon Investment Services LLC now owns 14,586 shares of the company's stock worth $1,235,000 after purchasing an additional 10,913 shares during the last quarter. Allspring Global Investments Holdings LLC raised its position in Axos Financial by 62.4% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 257,843 shares of the company's stock worth $21,538,000 after purchasing an additional 99,042 shares during the last quarter. American Century Companies Inc. raised its position in Axos Financial by 1.5% in the 3rd quarter. American Century Companies Inc. now owns 2,413,512 shares of the company's stock worth $204,304,000 after purchasing an additional 35,391 shares during the last quarter. JPMorgan Chase & Co. raised its position in Axos Financial by 18.2% in the 3rd quarter. JPMorgan Chase & Co. now owns 330,886 shares of the company's stock worth $28,010,000 after purchasing an additional 50,902 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC raised its position in Axos Financial by 281.8% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 40,419 shares of the company's stock worth $3,386,000 after purchasing an additional 29,833 shares during the last quarter. Institutional investors own 83.79% of the company's stock.

Axos Financial Stock Down 5.2%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.08 and a current ratio of 1.08. The firm's 50-day moving average is $89.89 and its two-hundred day moving average is $88.01. The stock has a market cap of $5.18 billion, a P/E ratio of 11.50 and a beta of 1.26.

Axos Financial Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.