Axon Enterprise, Inc $AXON Shares Sold by Motley Fool Asset Management LLC

Key Points

• Motley Fool Asset Management cut its Axon Enterprise stake by 11.9% in Q4, selling 4,943 shares and leaving it with 36,429 shares valued at about $20.7 million.
• Axon recently reported better-than-expected quarterly results, posting EPS of $1.61 and revenue of $807.35 million, with sales up 33.7% year over year.
• The stock is also under pressure from insider selling, including shares sold by the CEO and another executive, even as analysts still rate Axon “Moderate Buy” with a consensus price target of $712.75.

Motley Fool Asset Management LLC lowered its holdings in shares of Axon Enterprise, Inc (NASDAQ:AXON - Free Report) by 11.9% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 36,429 shares of the biotechnology company's stock after selling 4,943 shares during the period. Axon Enterprise comprises 0.8% of Motley Fool Asset Management LLC's portfolio, making the stock its 25th largest holding. Motley Fool Asset Management LLC's holdings in Axon Enterprise were worth $20,689,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. New Millennium Group LLC acquired a new position in Axon Enterprise during the third quarter worth about $29,000. Darwin Wealth Management LLC acquired a new position in Axon Enterprise during the second quarter worth about $37,000. Creative Financial Designs Inc. ADV acquired a new position in Axon Enterprise during the fourth quarter worth about $28,000. Sound Income Strategies LLC raised its position in Axon Enterprise by 550.0% during the fourth quarter. Sound Income Strategies LLC now owns 52 shares of the biotechnology company's stock worth $30,000 after acquiring an additional 44 shares during the last quarter. Finally, Camelot Portfolios LLC acquired a new position in Axon Enterprise during the fourth quarter worth about $30,000. Institutional investors and hedge funds own 79.08% of the company's stock.

Axon Enterprise Trading Down 3.9%

NASDAQ AXON opened at $452.51 on Wednesday. Axon Enterprise, Inc has a 12 month low of $339.01 and a 12 month high of $885.91. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.27 and a quick ratio of 1.93. The company has a market capitalization of $36.47 billion, a price-to-earnings ratio of 181.73, a price-to-earnings-growth ratio of 8.56 and a beta of 1.45. The company's fifty day moving average price is $408.90 and its two-hundred day moving average price is $490.57.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last issued its earnings results on Wednesday, May 6th. The biotechnology company reported $1.61 earnings per share for the quarter, topping analysts' consensus estimates of $1.60 by $0.01. The company had revenue of $807.35 million for the quarter, compared to analysts' expectations of $778.91 million. Axon Enterprise had a net margin of 6.90% and a return on equity of 3.78%. The firm's revenue was up 33.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.47 earnings per share. As a group, research analysts predict that Axon Enterprise, Inc will post 1.82 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Elizabeth Reid Coughlin sold 1,554 shares of the stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $485.00, for a total value of $753,690.00. Following the sale, the insider owned 34,024 shares of the company's stock, valued at $16,501,640. This trade represents a 4.37% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Patrick W. Smith sold 20,000 shares of the stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $500.00, for a total transaction of $10,000,000.00. Following the completion of the sale, the chief executive officer directly owned 3,060,997 shares in the company, valued at approximately $1,530,498,500. This trade represents a 0.65% 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. Over the last 90 days, insiders have sold 39,344 shares of company stock worth $19,267,315. 4.20% of the stock is owned by company insiders.

Axon Enterprise News Summary

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

• Positive Sentiment: Axon continues to receive favorable analyst coverage, with a “Moderate Buy” consensus and an average price target of $712.75, suggesting Wall Street still sees meaningful upside from current levels.
• Positive Sentiment: The stock has also been supported by strong recent fundamentals, including the company’s latest earnings beat and revenue growth, which helped drive a strong run earlier in the month. Article Title
• Neutral Sentiment: AXON Networks announced the acquisition of Greenwave Systems, a deal that expands its OSS/BSS and wireless orchestration capabilities. This is a strategic growth update, but it appears unrelated to Axon Enterprise’s core public-safety business. Article Title
• Neutral Sentiment: Short-interest data showed no meaningful change in the near term, so it does not appear to be a major driver of the stock’s move.
• Negative Sentiment: Several insiders, including the CEO, president, and CRO, sold shares under pre-arranged trading plans. While these sales may be routine, they can still weigh on investor sentiment when the stock is already trading lower. Article Title
• Negative Sentiment: The stock’s recent pullback also reflects broader profit-taking after a strong monthly run, especially as Axon remains richly valued versus earnings.

Analyst Ratings Changes

AXON has been the subject of a number of research reports. Wall Street Zen upgraded shares of Axon Enterprise from a "sell" rating to a "hold" rating in a research report on Saturday, February 28th. Morgan Stanley set a $600.00 target price on shares of Axon Enterprise in a report on Thursday, May 7th. Needham & Company LLC lowered their target price on shares of Axon Enterprise from $870.00 to $600.00 and set a "buy" rating for the company in a report on Friday, February 20th. Craig Hallum reissued a "buy" rating and issued a $820.00 price objective on shares of Axon Enterprise in a research report on Wednesday, February 25th. Finally, Royal Bank Of Canada decreased their target price on shares of Axon Enterprise from $860.00 to $735.00 and set an "outperform" rating for the company in a research note on Wednesday, February 25th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Axon Enterprise currently has an average rating of "Moderate Buy" and a consensus target price of $712.75.

About Axon Enterprise

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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