Legato Capital Management LLC Takes Position in AxoGen, Inc. $AXGN

Key Points

• Legato Capital Management disclosed a new stake in AxoGen, buying 40,435 shares valued at about $1.32 million. Institutional investors now hold a large majority of the company, with ownership at 80.29%.
• AxoGen’s latest quarterly results were mixed: it reported $61.46 million in revenue, topping expectations, but EPS of $0.07 fell short of the $0.12 consensus estimate. The company also continues to post negative profitability metrics.
• Analysts remain broadly constructive on the stock, with a consensus rating of Moderate Buy and an average price target of $46.50. Several firms recently raised their targets to the $48–$50 range.

Legato Capital Management LLC purchased a new stake in shares of AxoGen, Inc. (NASDAQ:AXGN - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 40,435 shares of the medical equipment provider's stock, valued at approximately $1,323,000. Legato Capital Management LLC owned approximately 0.09% of AxoGen as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also recently modified their holdings of the stock. First Light Asset Management LLC raised its stake in shares of AxoGen by 28.2% during the third quarter. First Light Asset Management LLC now owns 5,805,730 shares of the medical equipment provider's stock valued at $103,574,000 after acquiring an additional 1,276,487 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of AxoGen by 7.1% during the fourth quarter. Vanguard Group Inc. now owns 2,869,955 shares of the medical equipment provider's stock valued at $93,934,000 after acquiring an additional 190,557 shares in the last quarter. ArrowMark Colorado Holdings LLC raised its stake in shares of AxoGen by 20.4% during the third quarter. ArrowMark Colorado Holdings LLC now owns 1,958,406 shares of the medical equipment provider's stock valued at $34,938,000 after acquiring an additional 332,498 shares in the last quarter. Balyasny Asset Management L.P. raised its stake in shares of AxoGen by 183.9% during the second quarter. Balyasny Asset Management L.P. now owns 1,931,158 shares of the medical equipment provider's stock valued at $20,953,000 after acquiring an additional 1,250,968 shares in the last quarter. Finally, Wasatch Advisors LP raised its stake in shares of AxoGen by 14.3% during the third quarter. Wasatch Advisors LP now owns 1,639,351 shares of the medical equipment provider's stock valued at $29,246,000 after acquiring an additional 205,569 shares in the last quarter. Institutional investors own 80.29% of the company's stock.

AxoGen Stock Performance

Shares of AXGN stock opened at $40.90 on Monday. The firm has a market cap of $2.18 billion, a price-to-earnings ratio of -63.91 and a beta of 1.17. The company's 50 day moving average is $36.62 and its 200 day moving average is $32.85. The company has a quick ratio of 5.33, a current ratio of 7.10 and a debt-to-equity ratio of 0.08. AxoGen, Inc. has a 52-week low of $9.22 and a 52-week high of $45.83.

AxoGen (NASDAQ:AXGN - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The medical equipment provider reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.12 by ($0.05). The business had revenue of $61.46 million for the quarter, compared to analysts' expectations of $57.85 million. AxoGen had a negative net margin of 13.21% and a negative return on equity of 9.63%. On average, sell-side analysts anticipate that AxoGen, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling at AxoGen

In other AxoGen news, insider Erick Wayne Devinney sold 5,221 shares of AxoGen stock in a transaction on Monday, March 16th. The shares were sold at an average price of $32.84, for a total value of $171,457.64. Following the transaction, the insider directly owned 262,781 shares of the company's stock, valued at approximately $8,629,728.04. The trade was a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Amy Mcbride Wendell sold 1,647 shares of AxoGen stock in a transaction on Friday, May 8th. The stock was sold at an average price of $42.60, for a total transaction of $70,162.20. Following the completion of the transaction, the director directly owned 93,826 shares in the company, valued at $3,996,987.60. This represents a 1.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 34,262 shares of company stock valued at $1,440,250. 2.44% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on AXGN. Wall Street Zen raised shares of AxoGen from a "hold" rating to a "buy" rating in a research note on Saturday. Lake Street Capital lifted their price target on shares of AxoGen from $40.00 to $50.00 and gave the company a "buy" rating in a research note on Thursday, April 23rd. Canaccord Genuity Group lifted their price objective on shares of AxoGen from $45.00 to $50.00 and gave the company a "buy" rating in a report on Wednesday, April 29th. Wells Fargo & Company lifted their price objective on shares of AxoGen from $40.00 to $48.00 and gave the company an "overweight" rating in a report on Wednesday, April 29th. Finally, Citigroup reissued an "outperform" rating on shares of AxoGen in a report on Wednesday, April 29th. Nine equities research analysts have rated the stock with a Buy rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $46.50.

About AxoGen

AxoGen, Inc is a Florida-based medical technology company that develops and commercializes surgical solutions for peripheral nerve damage. Founded in 2002 and headquartered in Alachua, Florida, the company focuses on restoring nerve function and improving patient outcomes through innovative biologic and engineered products. AxoGen's offerings address a range of traumatic and iatrogenic injuries, offering alternatives to traditional nerve autografts.

The company's core product portfolio includes the Avance® Nerve Graft, a decellularized human nerve allograft designed to bridge nerve gaps without the need for a secondary harvest site, and the Axoguard® Nerve Connector and Protector devices, which facilitate nerve coaptation and protect repaired sites from surrounding scar tissue.

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