Insider Selling: Axon Enterprise (NASDAQ:AXON) CEO Sells $5,449,286.10 in Stock

Axon Enterprise, Inc (NASDAQ:AXON) CEO Patrick Smith sold 9,930 shares of the business’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $548.77, for a total transaction of $5,449,286.10. Following the sale, the chief executive officer directly owned 3,031,067 shares in the company, valued at approximately $1,663,358,637.59. The trade was a 0.33% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Axon Enterprise Stock Performance

NASDAQ:AXON opened at $615.59 on Friday. The stock has a market cap of $50.01 billion, a P/E ratio of 255.43, a price-to-earnings-growth ratio of 12.24 and a beta of 1.39. The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47. The stock’s 50-day moving average is $523.52 and its 200-day moving average is $473.43. Axon Enterprise, Inc has a 1-year low of $339.01 and a 1-year high of $794.29.

Axon Enterprise (NASDAQ:AXON) last posted its earnings results on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share for the quarter, topping analysts’ consensus estimates of $1.84 by $0.04. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The firm had revenue of $904.39 million for the quarter, compared to analyst estimates of $876.42 million. During the same period in the previous year, the firm posted $2.12 EPS. The company’s revenue for the quarter was up 35.3% compared to the same quarter last year. Equities research analysts anticipate that Axon Enterprise, Inc will post 1.63 earnings per share for the current year.

Hedge Funds Weigh In On Axon Enterprise

A number of hedge funds have recently bought and sold shares of the company. L2 Asset Management LLC bought a new stake in Axon Enterprise during the second quarter valued at $246,000. Whalen Wealth Management Inc. bought a new position in shares of Axon Enterprise in the 2nd quarter worth about $502,000. Cibc World Market Inc. acquired a new position in shares of Axon Enterprise in the 2nd quarter valued at about $4,202,000. OMERS ADMINISTRATION Corp acquired a new position in shares of Axon Enterprise in the 2nd quarter valued at about $2,168,000. Finally, Osmosis Investment Management UK Ltd bought a new stake in shares of Axon Enterprise during the 2nd quarter valued at about $7,260,000. Institutional investors own 79.08% of the company’s stock.

Key Stories Impacting Axon Enterprise

Here are the key news stories impacting Axon Enterprise this week:

• Positive Sentiment: Strong Q2 results and raised outlook: Axon exceeded expectations with adjusted earnings of $1.88 per share versus $1.84 expected and revenue of $904.4 million versus $876.4 million expected. Revenue grew 35.3% year over year, and management’s improved outlook supports the long-term growth story. Should You Buy, Hold or Sell AXON Stock Post Q2 Earnings Release?
• Positive Sentiment: Connected Devices momentum: TASER devices, body cameras and counter-drone products are driving strong hardware demand. Continued adoption of these products, combined with Axon’s cloud-based evidence and records software, reinforces the company’s integrated platform strategy. Will Strength in Connected Devices Unit Continue to Drive AXON’s Growth?
• Positive Sentiment: Bullish strategic commentary: Analysts highlighted Axon as a strong contender in law-enforcement technology, while coverage pointed to new artificial-intelligence capabilities as an additional growth catalyst for public-safety customers. Axon: A Strong Contender in Law Enforcement Tech
• Neutral Sentiment: Technical consolidation: AXON remains in a strong broader uptrend but has recently consolidated, leaving investors watching whether momentum resumes or the rally pauses. Stock of the Day: Is the Axon Rally Over?
• Negative Sentiment: Valuation and profitability risks: Despite strong revenue growth, analysts cautioned that Axon’s high earnings multiple, elevated costs, debt and relatively modest margins reduce its near-term appeal. Memory costs and counter-drone investments could also pressure profitability if spending rises faster than sales.
• Negative Sentiment: CEO share sale: CEO Patrick Smith sold 9,930 shares worth approximately $5.45 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan and represented only 0.33% of his holdings, making it a limited signal but a potential source of investor caution.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on AXON shares. Needham & Company LLC restated a “buy” rating on shares of Axon Enterprise in a report on Thursday, August 6th. Citizens Jmp reaffirmed a “market outperform” rating and set a $700.00 target price on shares of Axon Enterprise in a report on Thursday, June 25th. Morgan Stanley upped their price target on Axon Enterprise from $600.00 to $640.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. Barclays raised their price objective on Axon Enterprise from $523.00 to $688.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Finally, UBS Group lifted their price objective on Axon Enterprise from $440.00 to $600.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Thirteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $730.92.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops technology and weapons systems for public safety and law enforcement agencies, combining hardware, software and cloud services. The company’s hardware portfolio includes conducted energy weapons (commonly known as TASER devices), body-worn cameras and in-car camera systems. Axon pairs these devices with a suite of connected products and accessories designed to capture, store and manage field evidence.

Beyond hardware, Axon operates a subscription-based software platform for digital evidence management, evidence review and records management.