Axon Enterprise (NASDAQ:AXON) Trading Down 6% – Should You Sell?

Axon Enterprise, Inc (NASDAQ:AXON) shares dropped 6% during mid-day trading on Friday . The stock traded as low as $507.11 and last traded at $509.3920. Approximately 324,795 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 1,090,910 shares. The stock had previously closed at $541.75.

Wall Street Analysts Forecast Growth

AXON has been the topic of a number of recent research reports. Piper Sandler raised their price target on shares of Axon Enterprise from $674.00 to $724.00 and gave the stock an “overweight” rating in a research report on Monday, July 13th. Barclays cut their price objective on shares of Axon Enterprise from $682.00 to $523.00 and set an “overweight” rating for the company in a report on Friday, May 8th. Citizens Jmp restated a “market outperform” rating and set a $700.00 target price on shares of Axon Enterprise in a research report on Thursday, June 25th. Morgan Stanley set a $600.00 target price on shares of Axon Enterprise in a report on Thursday, May 7th. Finally, Weiss Ratings upgraded shares of Axon Enterprise from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, May 8th. Fifteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, Axon Enterprise has a consensus rating of “Moderate Buy” and a consensus target price of $725.25.

Axon Enterprise Stock Down 5.8%

The company has a market capitalization of $41.13 billion, a P/E ratio of 204.93, a price-to-earnings-growth ratio of 10.41 and a beta of 1.38. The company has a debt-to-equity ratio of 0.49, a quick ratio of 1.93 and a current ratio of 2.27. The firm’s fifty day moving average is $471.67 and its 200-day moving average is $481.88.

Axon Enterprise (NASDAQ:AXON) last issued its earnings results on Wednesday, May 6th. The biotechnology company reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.60 by $0.01. The business had revenue of $807.35 million during the quarter, compared to analysts’ expectations of $778.90 million. Axon Enterprise had a return on equity of 3.78% and a net margin of 6.90%.The business’s revenue for the quarter was up 33.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.47 EPS. As a group, equities research analysts predict that Axon Enterprise, Inc will post 1.63 EPS for the current year.

Insiders Place Their Bets

In related news, President Joshua Isner sold 13,000 shares of the business’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $488.45, for a total transaction of $6,349,850.00. Following the transaction, the president owned 169,125 shares in the company, valued at $82,609,106.25. The trade was a 7.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CRO Cameron Brooks sold 1,242 shares of the company’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $500.00, for a total transaction of $621,000.00. Following the transaction, the executive owned 49,710 shares in the company, valued at $24,855,000. This represents a 2.44% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 58,989 shares of company stock valued at $30,527,983 over the last quarter. Company insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Baillie Gifford & Co. lifted its holdings in shares of Axon Enterprise by 1,198.7% during the fourth quarter. Baillie Gifford & Co. now owns 1,642,578 shares of the biotechnology company’s stock worth $932,869,000 after purchasing an additional 1,516,099 shares during the period. Edgewood Management LLC acquired a new position in Axon Enterprise in the 4th quarter valued at $846,516,000. Wellington Management Group LLP increased its stake in Axon Enterprise by 326.9% in the 4th quarter. Wellington Management Group LLP now owns 1,539,738 shares of the biotechnology company’s stock valued at $874,463,000 after buying an additional 1,179,038 shares during the period. Norges Bank purchased a new position in Axon Enterprise during the 4th quarter worth $515,764,000. Finally, Styrax Capital LP purchased a new position in Axon Enterprise during the 1st quarter worth $84,938,000. 79.08% of the stock is currently owned by institutional investors and hedge funds.

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.