Axos Financial (NYSE:AX) Reaches New 12-Month High Following Strong Earnings

Axos Financial, Inc (NYSE:AX)’s share price reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $105.20 and last traded at $101.5350, with a volume of 23059 shares traded. The stock had previously closed at $98.48.

The company reported $2.53 EPS for the quarter, beating the consensus estimate of $2.16 by $0.37. Axos Financial had a return on equity of 16.48% and a net margin of 22.53%.The firm had revenue of $379.77 million for the quarter, compared to analysts’ expectations of $375.54 million. During the same quarter in the previous year, the business posted $1.94 EPS.

Axos Financial News Roundup

Here are the key news stories impacting Axos Financial this week:

• Positive Sentiment: Quarterly earnings beat expectations: Axos reported adjusted earnings of $2.53 per share, above the $2.15–$2.16 analyst consensus and up from $1.94 a year earlier. Revenue of $379.77 million also exceeded the $375.54 million estimate. The company reported a 16.48% return on equity and a 22.53% net margin. Axos Financial Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Analysts raised their valuation targets: Needham increased its target from $110 to $128 and maintained a “buy” rating, implying significant upside from recent trading levels. Keefe, Bruyette & Woods raised its target from $105 to $110 while retaining a “market perform” rating, signaling a more cautious but still improved outlook. Needham Raises Axos Financial Price Target
• Positive Sentiment: Growth outlook remains favorable: Management expects low- to mid-teens loan growth and stable net interest margins, suggesting continued balance-sheet expansion and relatively resilient core banking profitability. Axos Forecasts Loan Growth and Stable Net Interest Margin
• Negative Sentiment: Arc integration will raise expenses: The integration is expected to add approximately $1 million per month in costs, which could temporarily weigh on margins and partially offset the benefit of loan growth.

Analysts Set New Price Targets

A number of research analysts recently weighed in on AX shares. Raymond James Financial raised shares of Axos Financial from an “outperform” rating to a “strong-buy” rating and decreased their target price for the company from $110.00 to $100.00 in a research report on Tuesday, April 7th. Keefe, Bruyette & Woods boosted their price target on shares of Axos Financial from $105.00 to $110.00 and gave the stock a “market perform” rating in a research report on Friday. Zacks Research downgraded shares of Axos Financial from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, April 8th. Needham & Company LLC raised their price objective on Axos Financial from $110.00 to $128.00 and gave the company a “buy” rating in a report on Friday. Finally, Benchmark began coverage on Axos Financial in a research report on Wednesday, July 8th. They issued a “buy” rating and a $115.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $113.33.

Insider Activity at Axos Financial

In other news, Director Roque A. Santi sold 500 shares of Axos Financial stock in a transaction that occurred on Friday, May 8th. The stock was sold at an average price of $87.77, for a total transaction of $43,885.00. Following the completion of the transaction, the director directly owned 7,646 shares in the company, valued at approximately $671,089.42. The trade was a 6.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Michael James Watson sold 1,653 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $83.77, for a total value of $138,471.81. Following the transaction, the executive vice president directly owned 4,592 shares in the company, valued at $384,671.84. The trade was a 26.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 4.85% of the company’s stock.

Hedge Funds Weigh In On Axos Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AX. GAMMA Investing LLC increased its holdings in shares of Axos Financial by 6.6% in the second quarter. GAMMA Investing LLC now owns 2,427 shares of the company’s stock valued at $236,000 after purchasing an additional 150 shares during the last quarter. Versant Capital Management Inc lifted its stake in shares of Axos Financial by 77.9% during the 2nd quarter. Versant Capital Management Inc now owns 708 shares of the company’s stock worth $69,000 after buying an additional 310 shares during the last quarter. Western Wealth Management LLC acquired a new stake in shares of Axos Financial during the 1st quarter worth about $413,000. Argent Capital Management LLC boosted its holdings in shares of Axos Financial by 105.3% during the 1st quarter. Argent Capital Management LLC now owns 93,929 shares of the company’s stock worth $7,992,000 after buying an additional 48,172 shares during the period. Finally, Bank of America Corp DE boosted its holdings in shares of Axos Financial by 68.5% during the 1st quarter. Bank of America Corp DE now owns 221,656 shares of the company’s stock worth $18,861,000 after buying an additional 90,086 shares during the period. 83.79% of the stock is owned by institutional investors.

Axos Financial Stock Performance

The firm has a market cap of $5.71 billion, a price-to-earnings ratio of 12.18 and a beta of 1.23. The stock’s 50 day moving average is $93.10 and its 200 day moving average is $91.79. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.38.

Axos Financial Company Profile

Axos Financial, Inc (NYSE: AX) is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.