AxoGen (NASDAQ:AXGN) Shares Down 6.5% – Here’s What Happened

AxoGen, Inc. (NASDAQ:AXGN) fell 6.5% during mid-day trading on Thursday . The stock traded as low as $42.23 and last traded at $44.18. 544,656 shares traded hands during trading, a decline of 49% from the average session volume of 1,074,817 shares. The stock had previously closed at $47.27.

More AxoGen News

Here are the key news stories impacting AxoGen this week:

• Positive Sentiment: AxoGen agreed to acquire privately held BioCircuit Technologies for $200 million in cash. The transaction adds NerveTape™, described as the first FDA-approved device for sutureless peripheral nerve repair, potentially broadening AxoGen’s addressable market and product portfolio. AxoGen BioCircuit acquisition announcement
• Positive Sentiment: Management is positioning the acquisition as a strategic expansion into sutureless nerve repair, which could create additional revenue opportunities and strengthen AxoGen’s competitive position in its core markets. AxoGen BioCircuit buyout
• Neutral Sentiment: AxoGen priced a public offering of 4.91 million shares at $42.50 each, with expected gross proceeds of approximately $208.7 million. The proceeds are intended to fund the BioCircuit purchase, and underwriters have an option to buy up to 736,500 additional shares. AxoGen public offering pricing
• Negative Sentiment: The offering substantially increases the share count and creates near-term dilution for existing shareholders. The stock’s decline following the announcement indicates investors are prioritizing the dilution and execution risks of the acquisition over its potential strategic benefits. AxoGen acquisition and offering

Wall Street Analysts Forecast Growth

Several brokerages have commented on AXGN. Wall Street Zen upgraded shares of AxoGen from a “hold” rating to a “buy” rating in a research report on Sunday, July 26th. Canaccord Genuity Group lifted their price target on AxoGen from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Zacks Research upgraded AxoGen from a “strong sell” rating to a “hold” rating in a research note on Friday, May 29th. Citizens Jmp boosted their price target on AxoGen from $50.00 to $55.00 and gave the stock a “market outperform” rating in a report on Thursday, July 30th. Finally, HC Wainwright raised their price objective on AxoGen from $50.00 to $53.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Ten investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $51.56.

AxoGen Price Performance

The business’s 50-day simple moving average is $45.20 and its two-hundred day simple moving average is $40.42. The stock has a market cap of $2.27 billion, a price-to-earnings ratio of -62.00 and a beta of 1.16. The company has a debt-to-equity ratio of 0.07, a current ratio of 6.60 and a quick ratio of 5.04.

AxoGen (NASDAQ:AXGN) last announced its quarterly earnings results on Wednesday, July 29th. The medical equipment provider reported $0.12 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.12. AxoGen had a negative net margin of 13.36% and a negative return on equity of 8.90%. The company had revenue of $69.73 million during the quarter, compared to the consensus estimate of $67.10 million. Research analysts expect that AxoGen, Inc. will post -0.45 earnings per share for the current year.

Insider Transactions at AxoGen

In other news, Director Joseph A. Tyndall sold 3,500 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $49.70, for a total transaction of $173,950.00. Following the sale, the director directly owned 10,650 shares in the company, valued at approximately $529,305. The trade was a 24.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Marc A. Began sold 67,500 shares of the business’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $47.34, for a total value of $3,195,450.00. Following the sale, the executive vice president owned 50,135 shares in the company, valued at approximately $2,373,390.90. This trade represents a 57.38% decrease in their ownership of the stock. 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 sold 98,503 shares of company stock worth $4,656,947 in the last 90 days. 2.44% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AxoGen

Several hedge funds have recently added to or reduced their stakes in the business. First Light Asset Management LLC increased its position in AxoGen by 1.2% in the 2nd quarter. First Light Asset Management LLC now owns 4,529,243 shares of the medical equipment provider’s stock valued at $49,142,000 after acquiring an additional 55,028 shares during the period. BlackRock Inc. acquired a new position in shares of AxoGen during the second quarter worth $204,123,000. California State Teachers Retirement System lifted its holdings in shares of AxoGen by 4,400.3% during the second quarter. California State Teachers Retirement System now owns 2,661,006 shares of the medical equipment provider’s stock worth $122,912,000 after purchasing an additional 2,601,877 shares during the period. Morgan Stanley grew its stake in shares of AxoGen by 6.5% in the fourth quarter. Morgan Stanley now owns 2,586,870 shares of the medical equipment provider’s stock worth $84,668,000 after purchasing an additional 157,029 shares during the last quarter. Finally, Balyasny Asset Management L.P. grew its stake in shares of AxoGen by 183.9% in the second quarter. Balyasny Asset Management L.P. now owns 1,931,158 shares of the medical equipment provider’s stock worth $20,953,000 after purchasing an additional 1,250,968 shares during the last quarter. 80.29% of the stock is currently owned by institutional investors and hedge funds.

About AxoGen

AxoGen, Inc (NASDAQ: AXGN) is a medical technology company focused on the repair and regeneration of damaged peripheral nerves. The company develops and markets biologic and surgical products intended to help restore sensory and motor function following traumatic nerve injuries or surgical procedures.

Its product portfolio includes Avance Nerve Graft, a processed human nerve allograft used to bridge gaps in damaged nerves; Axoguard Nerve Connector, designed to protect and support the repair of smaller nerve injuries; and Axoguard Nerve Protector, a collagen-based product intended to help protect repaired nerves and reduce the effects of scar tissue.