Axon Enterprise (NASDAQ:AXON) Shares Down 6.5% After Insider Selling

Shares of Axon Enterprise, Inc (NASDAQ:AXON) were down 6.5% during mid-day trading on Wednesday following insider selling activity. The company traded as low as $594.20 and last traded at $595.21. Approximately 675,482 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 1,080,265 shares. The stock had previously closed at $636.31.

Specifically, CEO Patrick W. Smith sold 9,930 shares of Axon Enterprise stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $548.77, for a total transaction of $5,449,286.10. Following the completion of the sale, the chief executive officer directly owned 3,031,067 shares in the company, valued at $1,663,358,637.59. This trade represents a 0.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Patrick W. Smith sold 70 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $566.62, for a total transaction of $39,663.40. Following the transaction, the chief executive officer directly owned 3,030,997 shares of the company’s stock, valued at $1,717,423,520.14. The trade was a 0.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. TD Cowen restated a “buy” rating on shares of Axon Enterprise in a research note on Wednesday, July 22nd. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Axon Enterprise in a research report on Wednesday, August 5th. Needham & Company LLC reissued a “buy” rating on shares of Axon Enterprise in a research report on Thursday, August 6th. Zacks Research cut shares of Axon Enterprise from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Finally, Piper Sandler increased their target price on shares of Axon Enterprise from $724.00 to $732.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. Thirteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $730.92.

Key Axon Enterprise News

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

• Positive Sentiment: Connected devices remain a growth engine: TASER devices, body cameras and counter-drone equipment are driving strong momentum in Axon’s Connected Devices segment, supporting continued demand for the company’s public-safety ecosystem. Will Strength in Connected Devices Unit Continue to Drive AXON’s Growth?
• Positive Sentiment: AI and earnings support the bullish case: New artificial-intelligence capabilities and Axon’s software-and-hardware platform are viewed as long-term catalysts. Recent quarterly results also exceeded expectations, with earnings of $1.88 per share versus $1.84 expected and revenue of $904.4 million versus $876.4 million, up 35.3% year over year. Axon Public Safety Boosted by New AI Capabilities
• Neutral Sentiment: Technical consolidation follows a strong uptrend: Technical commentary says AXON is consolidating after a substantial advance, leaving investors focused on whether momentum can resume or the rally is losing steam. Stock of the Day: Is the Axon Rally Over?
• Negative Sentiment: Valuation creates downside risk: Analysts acknowledge Axon’s strong growth but caution that its very high earnings multiple leaves little room for execution disappointments. Recent commentary included a downgrade and a recommendation to take some profits, weighing on sentiment. Axon Enterprise Q2 Was Strong but Not a Buyer
• Negative Sentiment: Margins and insider selling are additional overhangs: Rising memory costs and expenses tied to counter-drone hardware could pressure profitability as Axon invests for growth. CEO Patrick Smith sold approximately $5.45 million of shares under a pre-arranged Rule 10b5-1 plan; the sale was relatively small at 0.33% of his holdings but may reinforce profit-taking concerns. Axon CEO Patrick Smith Sells 9,930 Shares

Axon Enterprise Stock Down 6.5%

The company has a debt-to-equity ratio of 0.47, a current ratio of 2.15 and a quick ratio of 1.80. The company has a market cap of $48.35 billion, a PE ratio of 246.98, a P/E/G ratio of 12.17 and a beta of 1.39. The business’s 50 day moving average is $519.11 and its 200-day moving average is $473.46.

Axon Enterprise (NASDAQ:AXON) last announced its quarterly earnings data on Tuesday, August 4th. The biotechnology company reported $1.88 earnings per share for the quarter, beating analysts’ consensus estimates of $1.84 by $0.04. The business had revenue of $904.39 million for the quarter, compared to analyst estimates of $876.42 million. Axon Enterprise had a net margin of 6.19% and a return on equity of 2.84%. The company’s revenue was up 35.3% on a year-over-year basis. During the same period last year, the business earned $2.12 EPS. As a group, analysts predict that Axon Enterprise, Inc will post 1.63 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Evolve Private Wealth LLC purchased a new stake in Axon Enterprise during the second quarter worth approximately $674,000. George Kaiser Family Foundation acquired a new position in shares of Axon Enterprise in the 2nd quarter valued at $423,000. Landscape Capital Management L.L.C. purchased a new position in shares of Axon Enterprise in the 2nd quarter valued at $1,257,000. Korea Investment CORP acquired a new stake in Axon Enterprise during the 2nd quarter worth $21,562,000. Finally, Rakuten Securities Inc. purchased a new stake in Axon Enterprise in the second quarter valued at $247,000. Hedge funds and other institutional investors own 79.08% of the company’s stock.

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.