AxoGen (NASDAQ:AXGN) Shares Gap Down on Disappointing Earnings

AxoGen, Inc. (NASDAQ:AXGN) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $35.38, but opened at $29.62. AxoGen shares last traded at $32.6480, with a volume of 485,420 shares trading hands.

The medical equipment provider reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.08 by ($0.36). AxoGen had a negative return on equity of 1.90% and a negative net margin of 0.98%.The company had revenue of $59.90 million for the quarter, compared to the consensus estimate of $59.90 million.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on AXGN shares. HC Wainwright increased their price objective on shares of AxoGen from $26.00 to $39.00 and gave the company a “buy” rating in a research note on Friday, December 5th. Lake Street Capital increased their price target on shares of AxoGen from $30.00 to $40.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. Canaccord Genuity Group raised their price target on shares of AxoGen from $27.00 to $37.00 and gave the stock a “buy” rating in a research note on Friday, December 5th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of AxoGen in a research note on Monday, December 29th. Finally, Wall Street Zen upgraded AxoGen from a “buy” rating to a “strong-buy” rating in a research note on Friday, January 23rd. Ten analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $37.67.

Insider Activity

In other AxoGen news, Director Paul Thomas sold 21,399 shares of the firm’s stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $29.61, for a total value of $633,624.39. Following the completion of the sale, the director owned 13,528 shares in the company, valued at approximately $400,564.08. This trade represents a 61.27% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Kathy Johnson Weiler sold 46,653 shares of the business’s stock in a transaction that occurred on Tuesday, December 16th. The stock was sold at an average price of $29.55, for a total transaction of $1,378,596.15. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 301,680 shares of company stock worth $9,174,052. 2.78% of the stock is currently owned by insiders.

Hedge Funds Weigh In On AxoGen

Several large investors have recently made changes to their positions in the company. HighMark Wealth Management LLC increased its position in shares of AxoGen by 88.7% in the 3rd quarter. HighMark Wealth Management LLC now owns 185,085 shares of the medical equipment provider’s stock valued at $3,302,000 after buying an additional 87,000 shares in the last quarter. Brown Capital Management LLC bought a new stake in AxoGen in the 3rd quarter valued at approximately $11,500,000. Legal & General Group Plc raised its holdings in shares of AxoGen by 81.3% in the second quarter. Legal & General Group Plc now owns 185,481 shares of the medical equipment provider’s stock valued at $2,012,000 after purchasing an additional 83,175 shares during the last quarter. Acadian Asset Management LLC raised its holdings in shares of AxoGen by 53.3% in the second quarter. Acadian Asset Management LLC now owns 347,726 shares of the medical equipment provider’s stock valued at $3,772,000 after purchasing an additional 120,914 shares during the last quarter. Finally, Assenagon Asset Management S.A. lifted its position in shares of AxoGen by 26.0% in the third quarter. Assenagon Asset Management S.A. now owns 1,289,072 shares of the medical equipment provider’s stock worth $22,997,000 after purchasing an additional 265,950 shares in the last quarter. Institutional investors and hedge funds own 80.29% of the company’s stock.

AxoGen Price Performance

The firm has a market cap of $1.60 billion, a price-to-earnings ratio of -691.06 and a beta of 1.00. The company’s fifty day moving average is $33.02 and its 200 day moving average is $24.72. The company has a quick ratio of 2.64, a current ratio of 4.09 and a debt-to-equity ratio of 0.54.

About AxoGen

AxoGen, Inc is a Florida-based medical technology company that develops and commercializes surgical solutions for peripheral nerve damage. Founded in 2002 and headquartered in Alachua, Florida, the company focuses on restoring nerve function and improving patient outcomes through innovative biologic and engineered products. AxoGen’s offerings address a range of traumatic and iatrogenic injuries, offering alternatives to traditional nerve autografts.

The company’s core product portfolio includes the Avance® Nerve Graft, a decellularized human nerve allograft designed to bridge nerve gaps without the need for a secondary harvest site, and the Axoguard® Nerve Connector and Protector devices, which facilitate nerve coaptation and protect repaired sites from surrounding scar tissue.