511,379 Shares in Axon Enterprise, Inc $AXON Acquired by Bank of America Corp DE

Key Points

• Bank of America acquired 511,379 Axon shares worth approximately $286.7 million, representing 0.63% of the company. Institutional investors and hedge funds collectively own 79.08% of Axon.
• Axon reported quarterly revenue of $904.4 million, up 35.3% year over year, and adjusted earnings of $1.88 per share, exceeding analysts’ expectations.
• The stock opened at $468.42, well below its 52-week high of $792.16, while its elevated P/E ratio of 194.37 underscores valuation concerns. Analysts nevertheless maintain a “Moderate Buy” consensus with an average price target of $721.57.

Bank of America Corp DE purchased a new position in shares of Axon Enterprise, Inc (NASDAQ:AXON - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm purchased 511,379 shares of the biotechnology company's stock, valued at approximately $286,684,000. Bank of America Corp DE owned 0.63% of Axon Enterprise as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Odyssean LLC raised its holdings in Axon Enterprise by 78.5% in the second quarter. Odyssean LLC now owns 3,681 shares of the biotechnology company's stock valued at $2,064,000 after buying an additional 1,619 shares during the period. Man Group plc purchased a new stake in Axon Enterprise during the 2nd quarter worth $5,805,000. Jupiter Topco LLC acquired a new stake in Axon Enterprise in the 2nd quarter valued at $4,764,000. J. Goldman & Co LP acquired a new stake in Axon Enterprise in the 2nd quarter valued at $22,545,000. Finally, EFG International AG purchased a new position in Axon Enterprise in the second quarter valued at about $22,097,000. Institutional investors and hedge funds own 79.08% of the company's stock.

Axon Enterprise Stock Performance

NASDAQ:AXON opened at $468.42 on Thursday. The company has a debt-to-equity ratio of 0.47, a current ratio of 2.15 and a quick ratio of 1.80. The firm has a 50-day moving average of $552.43 and a two-hundred day moving average of $488.02. The stock has a market cap of $38.05 billion, a P/E ratio of 194.37, a PEG ratio of 8.32 and a beta of 1.40. Axon Enterprise, Inc has a 1-year low of $339.01 and a 1-year high of $792.16.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last announced its earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.84 by $0.04. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.The business had revenue of $904.39 million for the quarter, compared to analyst estimates of $876.42 million. During the same period in the previous year, the company earned $2.12 earnings per share. The company's revenue for the quarter was up 35.3% compared to the same quarter last year. On average, research analysts expect that Axon Enterprise, Inc will post 2.12 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jeffrey Kunins sold 9,605 shares of Axon Enterprise 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 completion of the sale, the insider owned 97,761 shares in the company, valued at approximately $61,266,818.70. The trade was a 8.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joshua Isner sold 16,775 shares of the company's stock in a transaction on Monday, August 31st. The shares were sold at an average price of $574.43, for a total transaction of $9,636,063.25. Following the completion of the sale, the president directly owned 296,974 shares in the company, valued at $170,590,774.82. This represents a 5.35% decrease in their ownership of the stock. 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 quarter, insiders sold 67,397 shares of company stock valued at $38,160,884. Company insiders own 4.20% of the company's stock.

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

Analyst Upgrades and Downgrades

AXON has been the topic of a number of recent research reports. Zacks Research cut Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. The Goldman Sachs Group reiterated a "buy" rating and issued a $715.00 target price on shares of Axon Enterprise in a research note on Thursday, August 6th. Piper Sandler raised their target price on Axon Enterprise from $724.00 to $732.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Weiss Ratings reissued a "hold (c-)" rating on shares of Axon Enterprise in a research report on Wednesday, August 5th. Finally, Royal Bank Of Canada restated an "outperform" rating on shares of Axon Enterprise in a report on Tuesday, July 21st. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $721.57.

Axon Enterprise Company Profile

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.

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