Axon Enterprise (NASDAQ:AXON) Downgraded by Craig Hallum to Hold

Craig Hallum cut shares of Axon Enterprise (NASDAQ:AXON) from a buy rating to a hold rating in a research note published on Friday, MarketBeat Ratings reports. They currently have $390.00 price target on the biotechnology company’s stock.

Other analysts have also recently issued reports about the company. Morgan Stanley increased their price objective on Axon Enterprise from $600.00 to $640.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Axon Enterprise in a research note on Tuesday. Piper Sandler dropped their target price on Axon Enterprise from $732.00 to $561.00 and set an “overweight” rating on the stock in a report on Tuesday, October 20th. UBS Group boosted their target price on Axon Enterprise from $440.00 to $600.00 and gave the company a “neutral” rating in a report on Thursday, August 6th. Finally, TD Cowen cut their price target on Axon Enterprise from $825.00 to $800.00 and set a “buy” rating for the company in a research note on Monday, October 26th. Thirteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $631.35.

Axon Enterprise Stock Performance

Shares of NASDAQ:AXON traded down $69.56 on Friday, reaching $313.00. The company’s stock had a trading volume of 5,224,684 shares, compared to its average volume of 975,165. The stock’s 50-day moving average is $441.53 and its two-hundred day moving average is $475.20. Axon Enterprise has a 52-week low of $307.00 and a 52-week high of $665.07. 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 stock has a market capitalization of $25.43 billion, a P/E ratio of 100.32, a PEG ratio of 8.09 and a beta of 1.48.

Axon Enterprise (NASDAQ:AXON) last released its quarterly earnings results on Thursday, November 5th. The biotechnology company reported $1.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.89 by ($0.17). Axon Enterprise had a return on equity of 2.84% and a net margin of 6.19%. The company had revenue of $908.55 million for the quarter, compared to analysts’ expectations of $934.33 million. During the same period in the prior year, the business earned $1.17 EPS. The business’s quarterly revenue was up 27.8% compared to the same quarter last year. As a group, sell-side analysts forecast that Axon Enterprise will post 2.10 EPS for the current year.

Insider Activity

In related news, CEO Patrick W. Smith sold 10,000 shares of the stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $508.99, for a total transaction of $5,089,900.00. Following the completion of the transaction, the chief executive officer directly owned 3,118,012 shares of the company’s stock, valued at $1,587,036,927.88. This represents a 0.32% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joshua Isner sold 16,775 shares of the firm’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $574.43, for a total transaction of $9,636,063.25. Following the completion of the sale, the president owned 296,974 shares of the company’s stock, valued at approximately $170,590,774.82. The trade was a 5.35% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 37,397 shares of company stock valued at $21,234,034. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Axon Enterprise

Institutional investors have recently added to or reduced their stakes in the business. M & L Capital Management Ltd acquired a new position in Axon Enterprise during the 3rd quarter worth approximately $30,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Axon Enterprise during the 2nd quarter worth approximately $31,000. Wealth Enhancement Trust Services Inc. acquired a new stake in shares of Axon Enterprise in the 3rd quarter valued at approximately $33,000. Putney Financial Group LLC acquired a new stake in shares of Axon Enterprise in the 3rd quarter valued at approximately $36,000. Finally, Washington Trust Advisors Inc. lifted its holdings in shares of Axon Enterprise by 1,300.0% in the 2nd quarter. Washington Trust Advisors Inc. now owns 70 shares of the biotechnology company’s stock valued at $39,000 after buying an additional 65 shares during the period. Hedge funds and other institutional investors own 79.08% of the company’s stock.

More Axon Enterprise News

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

• Positive Sentiment: Q3 revenue reached a record $909 million, up 28% year over year, while software and services revenue rose 43%. Axon also reported AI annual recurring revenue above $100 million, signaling continued demand for its software and AI offerings. Axon Q3 results
• Neutral Sentiment: Axon committed an additional $1.2 billion to drone maker Skydio, bringing its stake to 37% and making it Skydio’s exclusive public-safety distributor in the U.S. and Canada. The move could expand Axon’s Drone as First Responder business, but its scale also raises investment and execution risks. Reuters: Axon invests in Skydio
• Negative Sentiment: Q3 adjusted earnings of $1.72 per share and revenue of $908.55 million fell short of analyst expectations. Axon’s 2026 revenue forecast was reduced to $3.6 billion from a consensus of about $3.7 billion; its Q4 revenue guidance also came in below estimates. The company cited delays in federal counter-drone projects, while margin pressure added to concerns. Zacks: Q3 miss and outlook
• Negative Sentiment: Several analysts lowered price targets after the results, and Craig Hallum downgraded AXON from Buy to Hold, adding to pressure on investor sentiment. Benzinga: analyst forecast changes
• Negative Sentiment: A class-action lawsuit over Axon’s license-plate surveillance practices is a potential additional legal and reputational overhang. Class-action announcement

About Axon Enterprise

Axon Enterprise develops technology and services for public safety agencies. Its products include TASER conducted-energy weapons, body-worn and in-car cameras, and related hardware designed to support law enforcement and other safety professionals.

The company also provides cloud-based software for managing digital evidence, records and operational workflows. Its Axon Evidence platform helps agencies store, organize and share video and other evidence, while its broader software offerings include tools for dispatch and records management.

Founded in 1993 as TASER International, the company adopted the name Axon Enterprise in 2017 as it expanded beyond conducted-energy weapons into connected devices and software.