Pembroke Management LTD Boosts Stake in Axos Financial, Inc $AX

Key Points

• Pembroke Management LTD increased its stake in Axos Financial, Inc by 6.3%, acquiring an additional 16,282 shares during Q1, bringing its total holdings to 274,572 shares valued at approximately $17.7 million.
• Axos Financial reported earnings of $1.94 per share for the latest quarter, exceeding analysts' expectations, with a year-over-year revenue growth of 10.5%.
• The company initiated a stock repurchase program allowing it to buy back up to $100 million in shares, signaling a belief that its stock is undervalued.

Pembroke Management LTD grew its holdings in Axos Financial, Inc (NYSE:AX - Free Report) by 6.3% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 274,572 shares of the company's stock after purchasing an additional 16,282 shares during the quarter. Axos Financial comprises about 2.6% of Pembroke Management LTD's investment portfolio, making the stock its 17th largest position. Pembroke Management LTD owned 0.49% of Axos Financial worth $17,715,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the business. Wealth Enhancement Advisory Services LLC raised its stake in Axos Financial by 94.8% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 8,017 shares of the company's stock worth $517,000 after buying an additional 3,901 shares during the period. NewEdge Advisors LLC lifted its stake in Axos Financial by 1,700.0% in the 4th quarter. NewEdge Advisors LLC now owns 900 shares of the company's stock worth $63,000 after purchasing an additional 850 shares in the last quarter. GAMMA Investing LLC grew its stake in Axos Financial by 39.2% in the 1st quarter. GAMMA Investing LLC now owns 1,834 shares of the company's stock worth $118,000 after acquiring an additional 516 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in shares of Axos Financial by 16.0% in the first quarter. Envestnet Asset Management Inc. now owns 50,402 shares of the company's stock worth $3,252,000 after acquiring an additional 6,957 shares during the period. Finally, SG Americas Securities LLC acquired a new stake in Axos Financial in the 1st quarter valued at about $750,000. 83.79% of the stock is owned by institutional investors and hedge funds.

Axos Financial Trading Down 1.3%

Shares of AX traded down $1.20 during trading hours on Tuesday, reaching $90.01. The stock had a trading volume of 294,017 shares, compared to its average volume of 387,316. The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 0.17. Axos Financial, Inc has a 52 week low of $54.46 and a 52 week high of $92.99. The firm has a 50-day moving average of $85.10 and a 200 day moving average of $72.77. The company has a market cap of $5.08 billion, a P/E ratio of 12.07 and a beta of 1.32.

Axos Financial (NYSE:AX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $1.94 EPS for the quarter, beating analysts' consensus estimates of $1.82 by $0.12. Axos Financial had a net margin of 22.24% and a return on equity of 17.11%. The company had revenue of $321.45 million for the quarter, compared to analysts' expectations of $311.73 million. During the same period in the prior year, the company posted $1.83 EPS. Axos Financial's revenue was up 10.5% compared to the same quarter last year. On average, sell-side analysts expect that Axos Financial, Inc will post 7.22 earnings per share for the current fiscal year.

Axos Financial declared that its board has initiated a share repurchase plan on Monday, May 12th that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to buy up to 2.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board believes its shares are undervalued.

Insider Activity at Axos Financial

In other Axos Financial news, EVP Andrew J. Micheletti sold 13,960 shares of Axos Financial stock in a transaction that occurred on Monday, August 4th. The stock was sold at an average price of $85.38, for a total transaction of $1,191,904.80. Following the sale, the executive vice president directly owned 67,460 shares in the company, valued at $5,759,734.80. The trade was a 17.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 5.07% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Raymond James Financial reissued an "outperform" rating and issued a $95.00 price objective (up from $90.00) on shares of Axos Financial in a research note on Thursday, July 31st. Jefferies Financial Group initiated coverage on shares of Axos Financial in a research report on Wednesday, May 21st. They set a "buy" rating and a $90.00 price target on the stock. Wall Street Zen upgraded Axos Financial from a "sell" rating to a "hold" rating in a research note on Saturday, August 2nd. Needham & Company LLC lifted their price target on Axos Financial from $92.00 to $102.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Finally, DA Davidson upped their price target on Axos Financial from $96.00 to $100.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Five analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $90.86.

About Axos Financial

Axos Financial, Inc, together with its subsidiaries, provides consumer and business banking products in the United States. It operates through two segments, Banking Business and Securities Business. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts.