Arxis (NASDAQ:ARXS) Shares Gap Down - Should You Sell?

Key Points

• Arxis shares fell sharply at the open, dropping from a prior close of $54.13 to $47.94 before last trading at $50.08.
• Analyst sentiment remains favorable: 11 analysts rate the stock a Buy and two rate it Hold, producing a “Moderate Buy” consensus and an average price target of $54.64.
• Arxis reported quarterly EPS of $0.28, beating estimates by $0.35, while revenue rose 25% year over year to $500.73 million; however, its valuation remains elevated with a price-to-earnings ratio of 680.88.

Arxis, Inc. (NASDAQ:ARXS - Get Free Report) gapped down prior to trading on Thursday. The stock had previously closed at $54.13, but opened at $47.94. Arxis shares last traded at $50.08, with a volume of 261,331 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ARXS. Citigroup lifted their price target on shares of Arxis from $61.00 to $67.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Weiss Ratings raised Arxis from a "sell (d+)" rating to a "hold (c-)" rating in a report on Thursday, October 8th. Morgan Stanley reissued an "overweight" rating and set a $62.00 target price on shares of Arxis in a report on Monday, August 3rd. Jefferies Financial Group reaffirmed a "buy" rating and issued a $60.00 price target on shares of Arxis in a research note on Sunday, August 2nd. Finally, Royal Bank Of Canada raised shares of Arxis from a "sector perform" rating to an "outperform" rating and upped their price objective for the stock from $50.00 to $60.00 in a research report on Friday, October 2nd. Eleven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $54.64.

Arxis Stock Up 0.6%

The company has a quick ratio of 3.79, a current ratio of 5.21 and a debt-to-equity ratio of 0.38. The stock's 50 day moving average price is $51.33. The firm has a market capitalization of $22.74 billion and a price-to-earnings ratio of 680.88.

Arxis (NASDAQ:ARXS - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.28 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.35. The business had revenue of $500.73 million for the quarter. Arxis's quarterly revenue was up 25.0% on a year-over-year basis. Sell-side analysts forecast that Arxis, Inc. will post 0.57 EPS for the current fiscal year.

Institutional Investors Weigh In On Arxis

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Squarepoint Ops LLC acquired a new position in shares of Arxis in the second quarter valued at approximately $19,506,000. Grandeur Peak Global Advisors LLC acquired a new stake in Arxis during the 2nd quarter worth approximately $2,740,000. State Street Corp bought a new stake in Arxis during the 2nd quarter worth approximately $9,948,000. Alyeska Investment Group L.P. acquired a new position in Arxis in the 2nd quarter valued at approximately $13,842,000. Finally, Moody National Bank Trust Division bought a new position in shares of Arxis during the third quarter valued at $1,113,000.

Arxis Company Profile

We are a leading designer and manufacturer of proprietary, mission-critical electronic and mechanical components engineered for cutting-edge performance in extreme environments. Leveraging significant intellectual property (“IP”) and world-class engineering capabilities, we design and deliver innovative solutions that address some of our customers' most complex performance needs. Arxis is the result of a deliberate and disciplined strategy executed by our sponsor, Arcline, and the Arxis management team to create a purpose-built, cohesive business through targeted acquisitions with similar product and end market characteristics.

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