Axos Financial (NYSE:AX) Shares Down 6% Following Weak Earnings

Axos Financial, Inc (NYSE:AX)’s stock price fell 6% during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $89.66 and last traded at $90.6250. 92,278 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 385,453 shares. The stock had previously closed at $96.44.

The company reported $1.90 EPS for the quarter, missing analysts’ consensus estimates of $2.13 by ($0.23). Axos Financial had a return on equity of 16.98% and a net margin of 22.66%.The business had revenue of $392.25 million for the quarter, compared to analyst estimates of $372.51 million. During the same quarter in the prior year, the company earned $1.81 earnings per share.

Key Axos Financial News

Here are the key news stories impacting Axos Financial this week:

• Positive Sentiment: Management reiterated growth plans and expects low- to mid?teens loan growth while two large deposit deals progress — a $2.3B Jenius relationship and a $3.2B Capital One deposit transfer — which support funding and growth outlook. Axos projects loan growth & deposit deals
• Positive Sentiment: Top-line beat: revenue of $392.3M topped consensus (~$372.5M), suggesting underlying business activity was stronger than expected. MarketBeat earnings summary
• Neutral Sentiment: Company presentation and full earnings-call transcript are available for detail; these will matter for interpreting one-time items, fee income mix and margin drivers. Investors will parse the slides and call for forward guidance and deposit/margin specifics. Earnings presentation Earnings call transcript
• Negative Sentiment: EPS confusion/miss: several analyst reports (Zacks, MarketBeat) show EPS of $1.90 vs. a $2.13 consensus — a miss that typically triggers downside selling. (The company press release also reported net income growth and a diluted EPS figure cited at $2.15, so differences between GAAP/adjusted or per?share calculations may have amplified investor uncertainty.) Zacks: misses Q3 estimates Company press release
• Negative Sentiment: Market reaction also reflects technical/valuation pressures: the shares are trading around recent 50? and 200?day moving averages and volume was light versus average, so any earnings miss or mixed message can produce outsized short?term moves. MarketBeat price & volume data

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on AX. Keefe, Bruyette & Woods upped their target price on shares of Axos Financial from $100.00 to $110.00 and gave the company a “market perform” rating in a report on Friday, January 30th. Raymond James Financial raised shares of Axos Financial from an “outperform” rating to a “strong-buy” rating and dropped their target price for the company from $110.00 to $100.00 in a report on Tuesday, April 7th. Zacks Research cut shares of Axos Financial from a “strong-buy” rating to a “hold” rating in a report on Wednesday, April 8th. Weiss Ratings raised shares of Axos Financial from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, April 24th. Finally, Jefferies Financial Group increased their price target on shares of Axos Financial from $110.00 to $115.00 and gave the company a “buy” rating in a report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $109.40.

Insider Buying and Selling

In related news, EVP Derrick Walsh sold 4,846 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $101.21, for a total transaction of $490,463.66. Following the sale, the executive vice president owned 37,936 shares in the company, valued at approximately $3,839,502.56. This trade represents a 11.33% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Gregory Garrabrants sold 43,294 shares of the stock in a transaction that occurred on Wednesday, February 4th. The stock was sold at an average price of $99.10, for a total transaction of $4,290,435.40. Following the sale, the chief executive officer owned 1,418,751 shares in the company, valued at $140,598,224.10. This represents a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 59,303 shares of company stock worth $5,908,474. Corporate insiders own 4.85% of the company’s stock.

Institutional Trading of Axos Financial

Several large investors have recently made changes to their positions in the company. Salomon & Ludwin LLC acquired a new stake in Axos Financial in the third quarter valued at approximately $26,000. Eurizon Capital SGR S.p.A. acquired a new stake in Axos Financial in the fourth quarter valued at approximately $26,000. Basepoint Wealth LLC acquired a new stake in Axos Financial in the fourth quarter valued at approximately $28,000. Bessemer Group Inc. boosted its position in Axos Financial by 59.6% in the third quarter. Bessemer Group Inc. now owns 348 shares of the company’s stock valued at $29,000 after buying an additional 130 shares in the last quarter. Finally, Brown Brothers Harriman & Co. acquired a new stake in Axos Financial in the third quarter valued at approximately $29,000. Institutional investors and hedge funds own 83.79% of the company’s stock.

Axos Financial Price Performance

The company has a debt-to-equity ratio of 0.40, a current ratio of 1.08 and a quick ratio of 1.08. The stock has a market cap of $5.18 billion, a price-to-earnings ratio of 11.50 and a beta of 1.26. The business’s 50-day simple moving average is $89.89 and its two-hundred day simple moving average is $88.01.

Axos Financial Company Profile

Axos Financial, Inc (NYSE: AX) is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.