Axon Enterprise's CPO & CTO Jeffrey Kunins sells $26.3 million in stock

SCOTTSDALE, AZ—Jeffrey C. Kunins, the Chief Product Officer and Chief Technology Officer of Axon Enterprise, Inc. (NASDAQ:), recently sold a substantial portion of his holdings in the company. According to a regulatory filing, Kunins sold shares totaling approximately $26.3 million over two days.

The transactions, which took place on November 12 and 13, involved the sale of common stock at prices ranging from $592.33 to $612.77 per share. Following these sales, Kunins holds 132,560 shares of Axon Enterprise, a company known for its development of public safety technology.

These transactions reflect a strategic financial decision by Kunins, who remains a significant shareholder in the company. Investors will be watching closely to see how these sales align with the company's future performance and strategic goals.

In other recent news, Axon Enterprise Inc. reported strong third-quarter results, with a 32% year-over-year increase in revenue and a 26.7% adjusted EBITDA margin. The company's record bookings for the quarter exceeded $1 billion, reflecting a growth rate above 30%. Axon's focus on artificial intelligence (AI) and TASER products, including the TASER 10, has been a significant factor in its success.

The company has raised its Q4 revenue guidance to $560-570 million and projects its full-year revenue to exceed $2.07 billion. This comes on the heels of integrating its recent acquisition, Dedrone, and launching new AI-driven products. However, Q4 may see a slight margin decline due to the associated costs of these developments.

Analysts from various firms have noted Axon's robust performance and the potential for continued growth. They highlighted the strong demand for TASER 10 and the success of the TASER business, which has achieved six consecutive quarters of record revenue. Despite a decline in fleet hardware affecting professional services and a slight deceleration in software growth, the overall outlook remains positive. These are the latest developments for Axon, a company that continues to innovate in the public safety sector.

InvestingPro Insights

Axon Enterprise's recent stock performance aligns with the significant sale by its Chief Product Officer and CTO. According to InvestingPro data, Axon's stock has seen impressive gains, with a 171.36% price total return over the past year and a 62.26% return in just the last three months. This strong performance may have influenced the timing of Kunins' decision to sell.

The company's financial health appears robust, with InvestingPro Tips highlighting that Axon holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This solid financial footing may provide reassurance to investors following the insider sale.

Axon's growth trajectory remains positive, with revenue growth of 32.32% in the last twelve months and analysts anticipating continued sales growth in the current year. An InvestingPro Tip notes that 12 analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's near-term prospects.

However, investors should be aware that Axon is trading at high valuation multiples. The company's P/E ratio stands at 153.99, and it's trading at high EBIT, EBITDA, and revenue valuation multiples. This premium valuation could be a factor for investors to consider in light of the insider sale.

For those seeking a more comprehensive analysis, InvestingPro offers 22 additional tips for Axon Enterprise, providing deeper insights into the company's financial health and market position.

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