Axos Financial (NYSE:AX) Hits New 52-Week High After Strong Earnings

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

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

More Axos Financial News

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.

Analyst Upgrades and Downgrades

Several brokerages have commented on AX. Needham & Company LLC upped their target price on shares of Axos Financial from $110.00 to $128.00 and gave the company a “buy” rating in a research report on Friday. Raymond James Financial upgraded Axos Financial from an “outperform” rating to a “strong-buy” rating and reduced their price target for the stock from $110.00 to $100.00 in a research report on Tuesday, April 7th. Benchmark started coverage on Axos Financial in a research note on Wednesday, July 8th. They set a “buy” rating and a $115.00 price objective for the company. Keefe, Bruyette & Woods upped their price objective on Axos Financial from $105.00 to $110.00 and gave the company a “market perform” rating in a report on Friday. Finally, Weiss Ratings raised Axos Financial from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, July 1st. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Buy” and an average target price of $113.33.

Insider Activity

In related news, Director Roque A. Santi sold 500 shares of the 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 sale, the director directly owned 7,646 shares of the company’s stock, valued at approximately $671,089.42. This represents a 6.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Michael James Watson sold 1,653 shares of the firm’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 transaction of $138,471.81. Following the sale, the executive vice president owned 4,592 shares in the company, valued at $384,671.84. This trade represents 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.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Eurizon Capital SGR S.p.A. acquired a new stake in shares of Axos Financial during the fourth quarter worth $26,000. Basepoint Wealth LLC bought a new stake in Axos Financial in the 4th quarter valued at $28,000. Brown Brothers Harriman & Co. bought a new stake in Axos Financial in the 3rd quarter valued at $29,000. State of Wyoming acquired a new position in Axos Financial in the 1st quarter worth $30,000. Finally, EverSource Wealth Advisors LLC boosted its stake in Axos Financial by 294.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 446 shares of the company’s stock worth $34,000 after purchasing an additional 333 shares during the period. Institutional investors and hedge funds own 83.79% of the company’s stock.

Axos Financial Stock Performance

The stock has a market cap of $5.71 billion, a P/E ratio of 12.18 and a beta of 1.23. The stock has a fifty day simple moving average of $93.10 and a 200-day simple moving average of $91.79. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.15 and a current ratio of 1.15.

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.