AxoGen (NASDAQ:AXGN) Shares Gap Up Following Strong Earnings

Key Points

• AxoGen shares surged 27.5%, opening at $45.45 versus a prior close of $37.46, after the company reported quarterly EPS of $0.21—above the $0.13 analyst consensus—and revenue of $75.83 million, ahead of estimates.
• Analyst sentiment remains broadly positive, with 12 Buy, two Hold, and one Sell rating; the stock has a consensus price target of $51.27 and an overall “Moderate Buy” rating.
• Institutional ownership stands at 80.29%, including new positions from BlackRock and other major investors, while company insiders sold 98,503 shares worth approximately $4.66 million during the latest quarter.

AxoGen, Inc. (NASDAQ:AXGN - Get Free Report) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $37.46, but opened at $45.45. AxoGen shares last traded at $47.9840, with a volume of 5,931,437 shares traded.

The medical equipment provider reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.08. The firm had revenue of $75.83 million for the quarter, compared to analyst estimates of $73.18 million. AxoGen had a negative return on equity of 8.90% and a negative net margin of 13.36%.

Wall Street Analysts Forecast Growth

AXGN has been the subject of several analyst reports. Truist Financial dropped their price objective on shares of AxoGen from $60.00 to $53.00 and set a "buy" rating for the company in a research note on Thursday, October 1st. Citizens Jmp lifted their price target on shares of AxoGen from $50.00 to $55.00 and gave the company a "market outperform" rating in a research report on Thursday, July 30th. Raymond James Financial increased their price target on AxoGen from $48.00 to $53.00 and gave the stock an "outperform" rating in a research report on Friday, September 25th. HC Wainwright raised their price objective on AxoGen from $50.00 to $53.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Finally, Wall Street Zen downgraded AxoGen from a "buy" rating to a "hold" rating in a research report on Saturday, September 26th. Twelve analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, AxoGen presently has an average rating of "Moderate Buy" and a consensus target price of $51.27.

Insiders Place Their Bets

In other AxoGen news, EVP Marc Began sold 67,500 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $47.34, for a total transaction of $3,195,450.00. Following the completion of the transaction, the executive vice president owned 50,135 shares of the company's stock, valued at approximately $2,373,390.90. The trade was a 57.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Joseph Tyndall sold 3,500 shares of the stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $49.70, for a total transaction of $173,950.00. Following the completion of the transaction, the director directly owned 10,650 shares of the company's stock, valued at $529,305. This trade represents a 24.73% 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 quarter, insiders have sold 98,503 shares of company stock worth $4,656,947. 2.44% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On AxoGen

A number of institutional investors have recently added to or reduced their stakes in AXGN. BlackRock Inc. bought a new position in AxoGen in the second quarter valued at about $204,123,000. Bamco Inc. NY acquired a new position in shares of AxoGen in the second quarter valued at approximately $34,190,000. TimesSquare Capital Management LLC acquired a new position in shares of AxoGen in the second quarter valued at approximately $31,863,000. Capricorn Fund Managers Ltd bought a new position in AxoGen in the 1st quarter valued at approximately $22,780,000. Finally, Deutsche Bank AG bought a new position in AxoGen in the 2nd quarter valued at approximately $30,106,000. 80.29% of the stock is currently owned by institutional investors and hedge funds.

AxoGen Trading Up 27.5%

The firm's 50-day moving average is $42.80 and its 200 day moving average is $39.20. The company has a current ratio of 6.60, a quick ratio of 5.04 and a debt-to-equity ratio of 0.07. The firm has a market capitalization of $2.57 billion, a price-to-earnings ratio of -70.26 and a beta of 1.17.

AxoGen Company Profile

AxoGen, Inc NASDAQ: AXGN is a medical technology company focused on developing and commercializing products for the repair and regeneration of peripheral nerves. Its technologies are designed to help restore sensory and motor function following traumatic injuries, surgical procedures, and other conditions affecting peripheral nerves.

The company's product portfolio includes Avance Nerve Graft, a processed human nerve allograft used to bridge gaps in damaged nerves without requiring tissue to be taken from another part of the patient's body.

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