Axon Enterprise (NASDAQ:AXON) Shares Gap Down on Disappointing Earnings

Axon Enterprise, Inc (NASDAQ:AXON) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $706.13, but opened at $563.84. Axon Enterprise shares last traded at $581.31, with a volume of 1,333,691 shares trading hands.

The biotechnology company reported $1.17 earnings per share for the quarter, missing the consensus estimate of $1.63 by ($0.46). The firm had revenue of $710.64 million during the quarter, compared to analyst estimates of $704.83 million. Axon Enterprise had a net margin of 13.64% and a return on equity of 6.80%. The business’s revenue for the quarter was up 30.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.45 earnings per share. Axon Enterprise has set its Q4 2025 guidance at EPS. FY 2025 guidance at EPS.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on AXON. Bank of America boosted their price target on shares of Axon Enterprise from $895.00 to $1,000.00 and gave the company a “buy” rating in a research note on Wednesday, August 6th. UBS Group reissued a “neutral” rating and issued a $840.00 price target (up from $820.00) on shares of Axon Enterprise in a research note on Tuesday, August 5th. JMP Securities reaffirmed a “market outperform” rating and set a $825.00 target price on shares of Axon Enterprise in a research note on Monday, September 29th. Raymond James Financial reaffirmed an “outperform” rating and set a $855.00 target price (up from $645.00) on shares of Axon Enterprise in a research note on Tuesday, August 5th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Axon Enterprise in a research note on Wednesday, October 8th. Fourteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $841.64.

Insiders Place Their Bets

In other news, President Joshua Isner sold 15,919 shares of the company’s stock in a transaction on Friday, August 15th. The shares were sold at an average price of $746.26, for a total value of $11,879,712.94. Following the completion of the transaction, the president owned 238,379 shares in the company, valued at approximately $177,892,712.54. This represents a 6.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Jeffrey C. Kunins sold 7,891 shares of the company’s stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $750.10, for a total transaction of $5,919,039.10. Following the completion of the transaction, the insider owned 144,538 shares of the company’s stock, valued at approximately $108,417,953.80. The trade was a 5.18% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 59,932 shares of company stock worth $45,115,616. 4.40% of the stock is currently owned by company insiders.

Institutional Trading of Axon Enterprise

A number of large investors have recently bought and sold shares of AXON. TCI Wealth Advisors Inc. purchased a new position in Axon Enterprise during the 2nd quarter worth $214,000. Duncker Streett & Co. Inc. raised its position in Axon Enterprise by 3.2% during the 2nd quarter. Duncker Streett & Co. Inc. now owns 14,501 shares of the biotechnology company’s stock worth $12,006,000 after buying an additional 448 shares during the last quarter. Quotient Wealth Partners LLC purchased a new position in Axon Enterprise during the 1st quarter worth $438,000. New York Life Investment Management LLC raised its position in Axon Enterprise by 3.2% during the 2nd quarter. New York Life Investment Management LLC now owns 11,044 shares of the biotechnology company’s stock worth $9,144,000 after buying an additional 341 shares during the last quarter. Finally, DAVENPORT & Co LLC raised its position in Axon Enterprise by 5.1% during the 1st quarter. DAVENPORT & Co LLC now owns 940 shares of the biotechnology company’s stock worth $494,000 after buying an additional 46 shares during the last quarter. Institutional investors and hedge funds own 79.08% of the company’s stock.

Axon Enterprise Stock Performance

The company has a market cap of $45.64 billion, a PE ratio of 143.53, a P/E/G ratio of 29.49 and a beta of 1.41. The company has a debt-to-equity ratio of 0.63, a quick ratio of 2.71 and a current ratio of 2.95. The stock’s 50-day simple moving average is $729.01 and its 200 day simple moving average is $736.07.

Axon Enterprise Company Profile

Axon Enterprise, Inc develops, manufactures, and sells conducted energy devices (CEDs) under the TASER brand in the United States and internationally. It operates through two segments, Software and Sensors, and TASER. The company also offers hardware and cloud-based software solutions that enable law enforcement to capture, securely store, manage, share, and analyze video and other digital evidence.