Friday, June 24, 2022

Axon Enterprise Inc. (NASDAQ:AAXN) is Waving the Bull Flag

Many stocks have been testing new highs in 2020, and one of the most notable is Axon Enterprise Inc. (AAXN). Currently, AAXN is trading at $100.27 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $83.56.

To add more color to this target, the company’s high over the last year is $99.61 and the low is $49.80. Over the last 52 weeks, AAXN is up 0.66% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AAXN reported a profit of $88.61 million. Axon Enterprise Inc. also saw revenues increase to $147.16 million. In addition, AAXN has free cash flow of $11.21 million as of 03-2020 The company’s EBITDA came in at $2.08 million which compares well with its peers.

AAXN booked profit margins of -0.30%, its Return on Equity (ROE) is -0.30%, and its Return on Assets is -0.20%. All told, it is clear that, AAXN needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AAXN has a short ratio of 5.46 and outstanding shares of 59.61M.

Company Outlook

AAXN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.32 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.03. Axon Enterprise Inc. AAXN also noted assets of $877.45 million at the end of the last quarter. Investors should also keep an eye on sector updates as AAXN has historically followed its peers on positive news.

All told, Axon Enterprise Inc. AAXN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AAXN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Axon Enterprise Inc. AAXN is now commanding a market cap of 6.03B and a float of 58.74M. AAXN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AAXN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AAXN, either long or short, and we have not been compensated for this article.

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