Axon Enterprise (NASDAQ:AXON) Shares Gap Down Following Insider Selling

Key Points

• Axon shares gapped lower after opening at $467.68 versus a prior close of $490.18, later trading near $442.49.
• Insiders sold shares under pre-arranged Rule 10b5-1 plans: CEO Patrick Smith sold 10,000 shares for about $5.09 million, while Isaiah Fields sold 1,017 shares for roughly $488,618.
• Despite the selloff, analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $721.57. Axon also beat quarterly EPS estimates and reported 35.3% year-over-year revenue growth.

Axon Enterprise, Inc (NASDAQ:AXON - Get Free Report)'s share price gapped down before the market opened on Tuesday after an insider sold shares in the company. The stock had previously closed at $490.18, but opened at $467.68. Axon Enterprise shares last traded at $442.4870, with a volume of 317,154 shares changing hands.

Specifically, insider Isaiah Fields sold 1,017 shares of the firm's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $480.45, for a total transaction of $488,617.65. Following the completion of the sale, the insider owned 56,264 shares of the company's stock, valued at approximately $27,032,038.80. This trade represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Patrick Smith sold 10,000 shares of the firm's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $508.99, for a total transaction of $5,089,900.00. Following the completion of the sale, the chief executive officer owned 3,118,012 shares of the company's stock, valued at $1,587,036,927.88. The trade was a 0.32% 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.

Analyst Upgrades and Downgrades

AXON has been the subject of several recent research reports. Piper Sandler boosted their price objective on Axon Enterprise from $724.00 to $732.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. Zacks Research lowered Axon Enterprise from a "strong-buy" rating to a "hold" rating in a research report on Friday, July 10th. TD Cowen reissued a "buy" rating on shares of Axon Enterprise in a research note on Wednesday, July 22nd. Barclays boosted their price objective on shares of Axon Enterprise from $523.00 to $688.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Finally, Argus increased their target price on shares of Axon Enterprise from $460.00 to $600.00 and gave the stock a "buy" rating in a report on Thursday, September 3rd. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $721.57.

Axon Enterprise Stock Performance

The stock has a 50 day moving average of $559.03 and a 200 day moving average of $489.15. 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 $35.83 billion, a price-to-earnings ratio of 181.91, a P/E/G ratio of 9.02 and a beta of 1.40.

Axon Enterprise (NASDAQ:AXON - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $1.88 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.84 by $0.04. Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%.The company had revenue of $904.39 million for the quarter, compared to analyst estimates of $876.42 million. During the same quarter last year, the company posted $2.12 EPS. The company's revenue for the quarter was up 35.3% compared to the same quarter last year. As a group, analysts anticipate that Axon Enterprise, Inc will post 2.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Axon Enterprise

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its stake in Axon Enterprise by 55,955.7% in the 2nd quarter. California State Teachers Retirement System now owns 64,781,849 shares of the biotechnology company's stock worth $36,317,352,000 after acquiring an additional 64,666,282 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of Axon Enterprise by 8,432.6% during the second quarter. The Manufacturers Life Insurance Company now owns 3,537,957 shares of the biotechnology company's stock worth $1,983,414,000 after purchasing an additional 3,496,493 shares in the last quarter. Nykredit A S bought a new position in shares of Axon Enterprise in the second quarter worth approximately $698,937,000. Norges Bank bought a new position in shares of Axon Enterprise in the fourth quarter worth approximately $515,764,000. Finally, Bank of America Corp DE purchased a new stake in Axon Enterprise in the second quarter valued at approximately $286,684,000. Hedge funds and other institutional investors own 79.08% of the company's stock.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops technology and equipment for law enforcement, public safety and other government agencies. Its product portfolio includes TASER energy weapons, body-worn cameras, in-car cameras and related connected devices designed to support safer interactions, improve transparency and collect operational data.

The company also provides cloud-based software for managing digital evidence, conducting investigations, overseeing records and workflows, coordinating dispatch and supporting real-time public safety operations.

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