Axon Enterprise, Inc (NASDAQ:AXON) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts remain broadly positive: Axon has a “Moderate Buy” consensus from 17 analysts, including 14 buy ratings and three holds, with an average 12-month price target of approximately $721.57.
• Recent results exceeded expectations: Quarterly earnings came in at $1.88 per share versus the $1.84 consensus estimate, while revenue rose 35.3% year over year to $904.39 million.
• Valuation and financing remain key risks: Axon trades at a high price-to-earnings ratio of 194.37 and recently priced $1 billion of zero-coupon convertible notes, which strengthens liquidity but could dilute shareholders if converted.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report) has received an average rating of "Moderate Buy" from the seventeen analysts that are currently covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a hold recommendation and fourteen have assigned a buy recommendation to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $721.5714.

AXON has been the subject of several recent analyst reports. UBS Group boosted their target price on Axon Enterprise from $440.00 to $600.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Argus raised their price target on Axon Enterprise from $460.00 to $600.00 and gave the company a "buy" rating in a report on Thursday, September 3rd. Citizens Jmp reiterated a "market outperform" rating and set a $700.00 price target on shares of Axon Enterprise in a research report on Thursday, June 25th. Piper Sandler boosted their price objective on Axon Enterprise from $724.00 to $732.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Finally, Morgan Stanley boosted their price objective on Axon Enterprise from $600.00 to $640.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th.

Axon Enterprise Stock Up 6.0%

Shares of NASDAQ:AXON opened at $468.42 on Thursday. The firm has a fifty day moving average price of $552.43 and a two-hundred day moving average price of $488.02. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.15 and a quick ratio of 1.80. Axon Enterprise has a one year low of $339.01 and a one year high of $792.16. The company has a market cap of $38.05 billion, a price-to-earnings ratio of 194.37, a PEG ratio of 8.32 and a beta of 1.40.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.04. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The firm had revenue of $904.39 million for the quarter, compared to analysts' expectations of $876.42 million. During the same quarter in the prior year, the firm posted $2.12 earnings per share. The business's quarterly revenue was up 35.3% on a year-over-year basis. Analysts anticipate that Axon Enterprise will post 2.12 EPS for the current fiscal year.

Axon Enterprise News Summary

Here are the key news stories impacting Axon Enterprise this week:

• Positive Sentiment: Axon priced $1 billion of 0% convertible senior notes due 2031, with underwriters able to purchase an additional $150 million. The zero-coupon structure limits immediate cash-interest expense and gives Axon capital for general corporate purposes, including growth investments, acquisitions, capital expenditures and working capital. Update: Axon Enterprise Shares Rise After it Prices $1 Billion Convertible Notes Offering
• Positive Sentiment: The completed transaction may reduce near-term liquidity concerns following reports that Axon’s cash position and free-cash-flow needs had come under investor scrutiny. It also provides additional financial flexibility for expanding its connected public-safety hardware and software platform. Axon Announces Pricing of $1.0 Billion Offering of 0% Convertible Senior Notes Due 2031
• Neutral Sentiment: Axon has attracted substantial investor attention, while analysts continue to weigh strong growth prospects and a deepening competitive moat against a high valuation and limited margin of safety. Axon Enterprise: The Moat Is Getting Deeper, But the Margin of Safety Remains Thin
• Negative Sentiment: Convertible notes can dilute existing shareholders if converted into stock, creating a continuing overhang. The debt raise also highlights investor concerns about cash generation and financing needs, which initially prompted a sharp selloff. Why Axon Enterprise Stock Was Tumbling Today
• Negative Sentiment: An insider sale worth approximately $489,000 was disclosed, although it was executed under a pre-arranged Rule 10b5-1 trading plan and therefore provides a weaker bearish signal than discretionary selling. Insider Selling: Axon Enterprise

Insider Activity at Axon Enterprise

In other news, insider Jeffrey C. Kunins sold 9,605 shares of the stock in a transaction on Friday, August 21st. The shares were sold at an average price of $626.70, for a total value of $6,019,453.50. Following the transaction, the insider owned 97,761 shares of the company's stock, valued at $61,266,818.70. This represents a 8.95% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Isaiah Fields sold 1,017 shares of the firm's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $480.45, for a total transaction of $488,617.65. Following the sale, the insider owned 56,264 shares in the company, valued at approximately $27,032,038.80. This trade represents a 1.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 67,397 shares of company stock valued at $38,160,884. Company insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. lifted its stake in Axon Enterprise by 4.3% during the second quarter. BlackRock Inc. now owns 8,334,551 shares of the biotechnology company's stock worth $4,672,432,000 after purchasing an additional 345,365 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in shares of Axon Enterprise by 8,432.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 3,537,957 shares of the biotechnology company's stock valued at $1,983,414,000 after purchasing an additional 3,496,493 shares during the last quarter. Geode Capital Management LLC increased its position in shares of Axon Enterprise by 1.6% during the 4th quarter. Geode Capital Management LLC now owns 2,226,159 shares of the biotechnology company's stock valued at $1,265,657,000 after purchasing an additional 35,544 shares during the last quarter. Sands Capital Management LLC raised its holdings in shares of Axon Enterprise by 11.6% during the 4th quarter. Sands Capital Management LLC now owns 1,609,436 shares of the biotechnology company's stock valued at $914,047,000 after buying an additional 167,095 shares in the last quarter. Finally, Nykredit A S purchased a new position in shares of Axon Enterprise during the 2nd quarter valued at about $698,937,000. Institutional investors own 79.08% of the company's stock.

About Axon Enterprise

Axon Enterprise, Inc develops technology and equipment for law enforcement, public safety and other government agencies. Its product portfolio includes TASER energy weapons, body-worn cameras, in-car cameras and related connected devices designed to support safer interactions, improve transparency and collect operational data.

The company also provides cloud-based software for managing digital evidence, conducting investigations, overseeing records and workflows, coordinating dispatch and supporting real-time public safety operations.

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.