Capital Investment Services of America Inc. Raises Holdings in Axon Enterprise, Inc $AXON

Key Points

• Capital Investment Services of America increased its Axon holdings by 51.8% in the second quarter, owning 18,836 shares valued at approximately $10.56 million. Institutional investors collectively hold 79.08% of Axon’s outstanding stock.
• Axon reported better-than-expected second-quarter results, with revenue up 35.3% year over year to $904.4 million and adjusted EPS of $1.88. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $730.92.
• Insiders sold nearly 69,000 shares worth $36.0 million over the past three months, including a limited CEO sale conducted under a pre-arranged Rule 10b5-1 plan. Despite strong growth and positive product momentum, Axon’s high valuation and profitability risks remain concerns.

Capital Investment Services of America Inc. grew its holdings in Axon Enterprise, Inc (NASDAQ:AXON - Free Report) by 51.8% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 18,836 shares of the biotechnology company's stock after buying an additional 6,427 shares during the quarter. Capital Investment Services of America Inc.'s holdings in Axon Enterprise were worth $10,560,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of the business. Evergreen Capital Management LLC raised its position in Axon Enterprise by 3.8% in the second quarter. Evergreen Capital Management LLC now owns 413 shares of the biotechnology company's stock worth $342,000 after acquiring an additional 15 shares in the last quarter. Synergy Financial Group LTD grew its stake in shares of Axon Enterprise by 1.4% during the 3rd quarter. Synergy Financial Group LTD now owns 1,388 shares of the biotechnology company's stock worth $996,000 after purchasing an additional 19 shares during the period. Tower Research Capital LLC TRC lifted its stake in shares of Axon Enterprise by 1.2% in the second quarter. Tower Research Capital LLC TRC now owns 1,631 shares of the biotechnology company's stock valued at $1,350,000 after purchasing an additional 19 shares during the period. Certuity LLC boosted its holdings in Axon Enterprise by 5.1% during the fourth quarter. Certuity LLC now owns 474 shares of the biotechnology company's stock worth $269,000 after buying an additional 23 shares in the last quarter. Finally, Pure Financial Advisors LLC grew its position in Axon Enterprise by 6.7% during the fourth quarter. Pure Financial Advisors LLC now owns 364 shares of the biotechnology company's stock worth $207,000 after buying an additional 23 shares during the period. 79.08% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity at Axon Enterprise

In other news, CEO Patrick W. Smith sold 9,930 shares of Axon Enterprise stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $548.77, for a total transaction of $5,449,286.10. Following the completion of the sale, the chief executive officer directly owned 3,031,067 shares in the company, valued at $1,663,358,637.59. The trade was a 0.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Caitlin Elizabeth Kalinowski sold 564 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $478.97, for a total transaction of $270,139.08. Following the completion of the transaction, the director directly owned 3,632 shares of the company's stock, valued at approximately $1,739,619.04. This represents a 13.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 68,989 shares of company stock worth $36,016,932 over the last three months. Company insiders own 4.20% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on AXON shares. 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. TD Cowen reaffirmed a "buy" rating on shares of Axon Enterprise in a report on Wednesday, July 22nd. 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. Royal Bank Of Canada restated an "outperform" rating on shares of Axon Enterprise in a research report on Tuesday, July 21st. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Axon Enterprise from $750.00 to $755.00 and gave the stock an "overweight" rating in a research report on Thursday, May 7th. Thirteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $730.92.

Trending Headlines about Axon Enterprise

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.

Axon Enterprise Stock Up 2.6%

AXON opened at $615.59 on Friday. The company has a quick ratio of 1.80, a current ratio of 2.15 and a debt-to-equity ratio of 0.47. The firm has a market cap of $50.01 billion, a P/E ratio of 255.43, a PEG ratio of 12.24 and a beta of 1.39. Axon Enterprise, Inc has a 52 week low of $339.01 and a 52 week high of $794.29. The business's fifty day simple moving average is $523.52 and its 200 day simple moving average is $473.43.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The biotechnology company reported $1.88 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 firm had revenue of $904.39 million during the quarter, compared to analysts' expectations of $876.42 million. During the same quarter last year, the business posted $2.12 EPS. The firm's quarterly revenue was up 35.3% compared to the same quarter last year. As a group, equities research analysts anticipate that Axon Enterprise, Inc will post 1.63 EPS for the current fiscal year.

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.

Want to see what other hedge funds are holding AXON? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Axon Enterprise, Inc (NASDAQ:AXON - Free Report).

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source