Malaga Cove Capital LLC Boosts Stock Position in Axon Enterprise, Inc $AXON

Malaga Cove Capital LLC lifted its stake in Axon Enterprise, Inc (NASDAQ:AXON) by 126.2% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,690 shares of the biotechnology company’s stock after acquiring an additional 943 shares during the period. Malaga Cove Capital LLC’s holdings in Axon Enterprise were worth $947,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the stock. Creative Financial Designs Inc. ADV bought a new stake in shares of Axon Enterprise during the 4th quarter valued at $28,000. Camelot Portfolios LLC bought a new position in Axon Enterprise in the 4th quarter worth about $30,000. AlphaCentric Advisors LLC bought a new position in Axon Enterprise in the 4th quarter worth about $34,000. Darwin Wealth Management LLC purchased a new position in Axon Enterprise during the 2nd quarter valued at about $37,000. Finally, Strive Financial Group LLC purchased a new position in Axon Enterprise during the 4th quarter valued at about $41,000. 79.08% of the stock is currently owned by hedge funds and other institutional investors.

Axon Enterprise Stock Up 2.6%

AXON stock opened at $615.59 on Friday. The company’s 50 day moving average is $523.52 and its 200 day moving average is $473.43. The stock has a market cap of $50.01 billion, a price-to-earnings ratio of 255.43, a price-to-earnings-growth ratio of 12.24 and a beta of 1.39. The company has a current ratio of 2.15, a quick ratio of 1.80 and a debt-to-equity ratio of 0.47. Axon Enterprise, Inc has a 1-year low of $339.01 and a 1-year high of $794.29.

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

Analyst Upgrades and Downgrades

A number of research firms have recently commented on AXON. Citizens Jmp restated a “market outperform” rating and issued a $700.00 price objective on shares of Axon Enterprise in a research report on Thursday, June 25th. Morgan Stanley upped their target price on shares of Axon Enterprise from $600.00 to $640.00 and gave the stock an “overweight” rating in a report on Thursday, August 6th. The Goldman Sachs Group reissued a “buy” rating and issued a $715.00 price target on shares of Axon Enterprise in a report on Thursday, August 6th. TD Cowen reaffirmed a “buy” rating on shares of Axon Enterprise in a report on Wednesday, July 22nd. Finally, Zacks Research downgraded Axon Enterprise from a “strong-buy” rating to a “hold” rating in a research report on Friday, July 10th. Thirteen investment 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 stock currently has an average rating of “Moderate Buy” and a consensus price target of $730.92.

Key Axon Enterprise News

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

• Positive Sentiment: Strong Q2 results and raised outlook: Axon exceeded expectations with adjusted earnings of $1.88 per share versus $1.84 expected and revenue of $904.4 million versus $876.4 million expected. Revenue grew 35.3% year over year, and management’s improved outlook supports the long-term growth story. Should You Buy, Hold or Sell AXON Stock Post Q2 Earnings Release?
• Positive Sentiment: Connected Devices momentum: TASER devices, body cameras and counter-drone products are driving strong hardware demand. Continued adoption of these products, combined with Axon’s cloud-based evidence and records software, reinforces the company’s integrated platform strategy. Will Strength in Connected Devices Unit Continue to Drive AXON’s Growth?
• Positive Sentiment: Bullish strategic commentary: Analysts highlighted Axon as a strong contender in law-enforcement technology, while coverage pointed to new artificial-intelligence capabilities as an additional growth catalyst for public-safety customers. Axon: A Strong Contender in Law Enforcement Tech
• Neutral Sentiment: Technical consolidation: AXON remains in a strong broader uptrend but has recently consolidated, leaving investors watching whether momentum resumes or the rally pauses. Stock of the Day: Is the Axon Rally Over?
• Negative Sentiment: Valuation and profitability risks: Despite strong revenue growth, analysts cautioned that Axon’s high earnings multiple, elevated costs, debt and relatively modest margins reduce its near-term appeal. Memory costs and counter-drone investments could also pressure profitability if spending rises faster than sales.
• Negative Sentiment: CEO share sale: CEO Patrick Smith sold 9,930 shares worth approximately $5.45 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan and represented only 0.33% of his holdings, making it a limited signal but a potential source of investor caution.

Insider Activity

In other news, CRO Cameron Brooks sold 1,242 shares of Axon Enterprise stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $500.00, for a total transaction of $621,000.00. Following the completion of the sale, the executive directly owned 49,710 shares of the company’s stock, valued at approximately $24,855,000. The trade was a 2.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Caitlin Elizabeth Kalinowski sold 564 shares of Axon Enterprise stock in a transaction on Monday, June 1st. The stock was sold at an average price of $478.97, for a total transaction of $270,139.08. Following the sale, the director directly owned 3,632 shares of the company’s stock, valued at $1,739,619.04. This represents a 13.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 68,989 shares of company stock worth $36,016,932. Corporate insiders own 4.20% of the company’s stock.

Axon Enterprise 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.