AMI Asset Management Corp Acquires Shares of 104,067 Axon Enterprise, Inc $AXON

Key Points

• AMI Asset Management acquired 104,067 Axon shares worth approximately $58.3 million, making Axon 3.4% of its portfolio and its 11th-largest position. Institutional investors collectively own 79.08% of the company.
• Axon reported quarterly revenue of $904.4 million, up 35.3% year over year, and adjusted EPS of $1.88, exceeding analysts’ expectations. Growth is supported by demand for TASER devices, body cameras, counter-drone products and cloud software.
• Despite bullish analyst sentiment—13 Buy ratings and an average price target of $730.92—Axon trades at a very high valuation, with a price-to-earnings ratio above 255. Insiders sold shares recently, including a $10 million sale by CEO Patrick W. Smith under a pre-arranged trading plan.

AMI Asset Management Corp purchased a new position in Axon Enterprise, Inc (NASDAQ:AXON - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 104,067 shares of the biotechnology company's stock, valued at approximately $58,341,000. Axon Enterprise accounts for 3.4% of AMI Asset Management Corp's investment portfolio, making the stock its 11th largest position. AMI Asset Management Corp owned approximately 0.13% of Axon Enterprise as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also bought and sold shares of the company. Creative Financial Designs Inc. ADV acquired a new position in shares of Axon Enterprise in the 4th quarter valued at approximately $28,000. Camelot Portfolios LLC bought a new stake in Axon Enterprise during the fourth quarter worth $30,000. AlphaCentric Advisors LLC acquired a new stake in shares of Axon Enterprise in the 4th quarter valued at $34,000. Darwin Wealth Management LLC acquired a new stake in shares of Axon Enterprise in the 2nd quarter valued at $37,000. Finally, Strive Financial Group LLC bought a new position in shares of Axon Enterprise in the 4th quarter valued at $41,000. Institutional investors and hedge funds own 79.08% of the company's stock.

Insider Activity at Axon Enterprise

In related news, CEO Patrick W. Smith sold 20,000 shares of Axon Enterprise stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $500.00, for a total value of $10,000,000.00. Following the transaction, the chief executive officer directly owned 3,060,997 shares of the company's stock, valued at $1,530,498,500. The trade was a 0.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CRO Cameron Brooks sold 1,242 shares of the company's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $500.00, for a total value of $621,000.00. Following the completion of the sale, the executive owned 49,710 shares in the company, valued at $24,855,000. The trade was a 2.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 68,989 shares of company stock valued at $36,016,932 over the last ninety days. Insiders own 4.20% of the company's stock.

Axon Enterprise Stock Performance

NASDAQ AXON opened at $615.59 on Friday. The company has a market capitalization of $50.01 billion, a price-to-earnings ratio of 255.43, a PEG ratio of 12.24 and a beta of 1.39. Axon Enterprise, Inc has a twelve month low of $339.01 and a twelve month high of $794.29. The stock has a fifty day simple moving average of $523.52 and a 200 day simple moving average of $473.43. The company has a quick ratio of 1.80, a current ratio of 2.15 and a debt-to-equity ratio of 0.47.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last announced its earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 EPS for the quarter, topping the consensus estimate of $1.84 by $0.04. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.The firm had revenue of $904.39 million for the quarter, compared to the consensus estimate of $876.42 million. During the same period in the previous year, the business earned $2.12 EPS. The business's quarterly revenue was up 35.3% compared to the same quarter last year. Sell-side analysts expect that Axon Enterprise, Inc will post 1.63 EPS for the current year.

Axon Enterprise News Summary

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

• Positive Sentiment: Strong Q2 results and raised outlook: Axon exceeded expectations with adjusted earnings of $1.88 per share versus $1.84 expected and revenue of $904.4 million versus $876.4 million expected. Revenue grew 35.3% year over year, and management’s improved outlook supports the long-term growth story. Should You Buy, Hold or Sell AXON Stock Post Q2 Earnings Release?
• Positive Sentiment: Connected Devices momentum: TASER devices, body cameras and counter-drone products are driving strong hardware demand. Continued adoption of these products, combined with Axon’s cloud-based evidence and records software, reinforces the company’s integrated platform strategy. Will Strength in Connected Devices Unit Continue to Drive AXON’s Growth?
• Positive Sentiment: Bullish strategic commentary: Analysts highlighted Axon as a strong contender in law-enforcement technology, while coverage pointed to new artificial-intelligence capabilities as an additional growth catalyst for public-safety customers. Axon: A Strong Contender in Law Enforcement Tech
• Neutral Sentiment: Technical consolidation: AXON remains in a strong broader uptrend but has recently consolidated, leaving investors watching whether momentum resumes or the rally pauses. Stock of the Day: Is the Axon Rally Over?
• Negative Sentiment: Valuation and profitability risks: Despite strong revenue growth, analysts cautioned that Axon’s high earnings multiple, elevated costs, debt and relatively modest margins reduce its near-term appeal. Memory costs and counter-drone investments could also pressure profitability if spending rises faster than sales.
• Negative Sentiment: CEO share sale: CEO Patrick Smith sold 9,930 shares worth approximately $5.45 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan and represented only 0.33% of his holdings, making it a limited signal but a potential source of investor caution.

Analyst Ratings Changes

A number of equities analysts have recently commented on AXON shares. TD Cowen reissued a "buy" rating on shares of Axon Enterprise in a report on Wednesday, July 22nd. Zacks Research lowered Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research note on Friday, July 10th. Morgan Stanley lifted their target price on Axon Enterprise from $600.00 to $640.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Piper Sandler boosted their target price on Axon Enterprise from $724.00 to $732.00 and gave the stock an "overweight" rating in a research note on Thursday, August 6th. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $715.00 target price on shares of Axon Enterprise in a report on Thursday, August 6th. Thirteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $730.92.

Axon Enterprise Profile

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company's hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.

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