Axon Enterprise, Inc $AXON Stock Holdings Lifted by QRG Capital Management Inc.

Key Points

• QRG Capital Management dramatically increased its Axon stake by 70,966% in the second quarter, bringing its holdings to 838,579 shares worth approximately $470.1 million. Institutional investors collectively own 79.08% of the company.
• Axon reported quarterly revenue of $904.4 million, up 35.3% year over year, and EPS of $1.88, exceeding analyst expectations. However, the stock traded down 1.9% to $450.61 and carries an elevated P/E ratio of about 187.
• Analysts remain broadly optimistic, with a “Moderate Buy” consensus rating and an average price target of $721.57, while insiders have sold $38.2 million of stock over the past 90 days. Recent concerns include valuation, margins, debt and regulatory scrutiny.

QRG Capital Management Inc. boosted its position in shares of Axon Enterprise, Inc (NASDAQ:AXON - Free Report) by 70,966.0% in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 838,579 shares of the biotechnology company's stock after buying an additional 837,399 shares during the quarter. Axon Enterprise makes up about 3.4% of QRG Capital Management Inc.'s holdings, making the stock its 4th biggest holding. QRG Capital Management Inc. owned about 1.03% of Axon Enterprise worth $470,116,000 at the end of the most recent reporting period.

Other institutional investors have also added to or reduced their stakes in the company. State Street Corp grew its holdings in Axon Enterprise by 5,700.2% in the 2nd quarter. State Street Corp now owns 213,561,844 shares of the biotechnology company's stock worth $119,724,905,000 after acquiring an additional 209,879,882 shares during the last quarter. Envestnet Asset Management Inc. increased its position in shares of Axon Enterprise by 18,050.2% in the second quarter. Envestnet Asset Management Inc. now owns 13,200,075 shares of the biotechnology company's stock valued at $7,400,094,000 after acquiring an additional 13,127,348 shares during the period. The Manufacturers Life Insurance Company raised its stake in shares of Axon Enterprise by 8,432.6% during the second 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 acquiring an additional 3,496,493 shares during the last quarter. Nykredit A S bought a new position in shares of Axon Enterprise during the second quarter valued at about $698,937,000. Finally, Norges Bank purchased a new stake in shares of Axon Enterprise during the fourth quarter worth about $515,764,000. Hedge funds and other institutional investors own 79.08% of the company's stock.

Axon Enterprise Trading Down 1.9%

Shares of AXON traded down $8.71 during trading hours on Wednesday, reaching $450.61. 770,373 shares of the company traded hands, compared to its average volume of 1,054,314. The company's fifty day moving average price is $543.84 and its two-hundred day moving average price is $484.85. The company has a market capitalization of $36.61 billion, a price-to-earnings ratio of 186.98, a price-to-earnings-growth ratio of 8.51 and a beta of 1.40. 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, Inc has a 12 month low of $339.01 and a 12 month high of $789.29.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, beating 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 company had revenue of $904.39 million for the quarter, compared to analysts' expectations of $876.42 million. During the same quarter in the previous year, the company earned $2.12 earnings per share. Axon Enterprise's quarterly revenue was up 35.3% on a year-over-year basis. Equities research analysts predict that Axon Enterprise, Inc will post 2.12 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the company. The Goldman Sachs Group reissued 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 upped their price target on Axon Enterprise from $724.00 to $732.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. Royal Bank Of Canada reiterated an "outperform" rating on shares of Axon Enterprise in a research report on Tuesday, July 21st. Argus boosted their target price on Axon Enterprise from $460.00 to $600.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Finally, Citizens Jmp restated a "market outperform" rating and set a $700.00 target price on shares of Axon Enterprise in a report on Thursday, June 25th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $721.57.

Key Headlines Impacting Axon Enterprise

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

• Positive Sentiment: Chattanooga’s city council renewed its contract with Axon for five years, reinforcing the company’s recurring public-sector revenue base and customer retention. Chattanooga City Council renews five-year contract with Axon Enterprise
• Positive Sentiment: The Los Angeles Police Department approved a license-plate-reader pilot as a broader Axon technology agreement moves toward consideration by the city council. The pilot could create an opportunity for a larger contract, although approval is not yet certain. LAPD ALPR Pilot Approved as Axon Tech Deal Heads to City Council
• Neutral Sentiment: Reports that AXON gained in premarket trading and during the Nasdaq session describe market performance rather than identifying a new fundamental catalyst. Axon Enterprise stock gains 1.61 percent on Nasdaq
• Negative Sentiment: Axon and Flock executives did not attend a Senate hearing on surveillance technology after Chair Josh Hawley warned that subpoenas could be issued. The episode raises regulatory, political and reputational risks for Axon’s public-safety technology business. Flock, Axon dodge Senate hearing after invite from Chair Josh Hawley
• Negative Sentiment: Recent commentary points to margin and debt concerns, while another analysis questions whether Axon’s valuation and growth justify choosing it over ServiceNow. These concerns are especially significant given AXON’s elevated earnings multiple and recent weakness. Axon Enterprise stock slips as margins and debt pressure sentiment

Insider Transactions at Axon Enterprise

In other news, CEO Patrick W. Smith sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $508.99, for a total value of $5,089,900.00. Following the completion of the transaction, the chief executive officer owned 3,118,012 shares of the company's stock, valued at approximately $1,587,036,927.88. This represents a 0.32% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joshua Isner sold 16,775 shares of the firm's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $574.43, for a total value of $9,636,063.25. Following the completion of the transaction, the president owned 296,974 shares of the company's stock, valued at approximately $170,590,774.82. The trade was a 5.35% 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 90 days, insiders sold 67,397 shares of company stock valued at $38,160,884. Insiders own 4.20% 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.

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