Axon Enterprise (NASDAQ:AXON) Shares Down 6.7% – Should You Sell?

Axon Enterprise, Inc (NASDAQ:AXON)’s stock price fell 6.7% on Wednesday . The company traded as low as $569.23 and last traded at $569.37. 451,810 shares were traded during mid-day trading, a decline of 27% from the average session volume of 614,782 shares. The stock had previously closed at $610.22.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AXON. Morgan Stanley dropped their price target on shares of Axon Enterprise from $760.00 to $713.00 and set an “overweight” rating on the stock in a report on Wednesday, December 17th. UBS Group lowered their price objective on shares of Axon Enterprise from $840.00 to $610.00 and set a “neutral” rating on the stock in a research report on Wednesday, November 5th. Northcoast Research upgraded shares of Axon Enterprise from a “neutral” rating to a “buy” rating and set a $742.00 target price on the stock in a report on Tuesday, January 6th. Barclays decreased their target price on shares of Axon Enterprise from $861.00 to $702.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. Finally, Piper Sandler dropped their price target on Axon Enterprise from $893.00 to $753.00 and set an “overweight” rating on the stock in a research note on Wednesday, November 5th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $805.71.

Axon Enterprise Price Performance

The company has a market cap of $44.35 billion, a P/E ratio of 177.86, a P/E/G ratio of 19.05 and a beta of 1.41. The company has a current ratio of 3.12, a quick ratio of 2.89 and a debt-to-equity ratio of 0.57. The firm has a 50 day moving average of $578.93 and a 200-day moving average of $673.48.

Axon Enterprise (NASDAQ:AXON) last posted its earnings results on Wednesday, November 5th. The biotechnology company reported $1.17 earnings per share for the quarter, missing analysts’ consensus estimates of $1.63 by ($0.46). The business had revenue of $710.64 million during the quarter, compared to analysts’ expectations of $704.83 million. Axon Enterprise had a net margin of 10.05% and a return on equity of 4.29%. The company’s revenue for the quarter was up 30.6% compared to the same quarter last year. During the same period last year, the business posted $1.45 earnings per share. On average, equities research analysts predict that Axon Enterprise, Inc will post 5.8 EPS for the current year.

Insider Activity

In related news, CAO Jennifer H. Mak sold 1,134 shares of the business’s stock in a transaction that occurred on Friday, December 19th. The shares were sold at an average price of $600.00, for a total value of $680,400.00. Following the completion of the transaction, the chief accounting officer owned 13,740 shares of the company’s stock, valued at $8,244,000. The trade was a 7.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Patrick W. Smith sold 10,000 shares of the business’s stock in a transaction dated Monday, December 8th. The stock was sold at an average price of $551.92, for a total transaction of $5,519,200.00. Following the completion of the transaction, the chief executive officer owned 3,110,997 shares of the company’s stock, valued at $1,717,021,464.24. This represents a 0.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 60,540 shares of company stock valued at $34,684,738. Company insiders own 5.70% of the company’s stock.

Institutional Investors Weigh In On Axon Enterprise

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Stone House Investment Management LLC acquired a new stake in Axon Enterprise in the 3rd quarter worth approximately $29,000. New Millennium Group LLC purchased a new position in shares of Axon Enterprise in the third quarter worth $29,000. Hemington Wealth Management lifted its stake in shares of Axon Enterprise by 70.8% during the second quarter. Hemington Wealth Management now owns 41 shares of the biotechnology company’s stock worth $33,000 after buying an additional 17 shares during the period. Whipplewood Advisors LLC grew its holdings in shares of Axon Enterprise by 192.9% during the second quarter. Whipplewood Advisors LLC now owns 41 shares of the biotechnology company’s stock valued at $34,000 after buying an additional 27 shares during the last quarter. Finally, Darwin Wealth Management LLC acquired a new position in shares of Axon Enterprise in the 2nd quarter valued at $37,000. 79.08% of the stock is currently owned by hedge funds and other institutional investors.

About Axon Enterprise

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.