Axos Financial, Inc. (NYSE:AX) executive Andrew J. Micheletti, who serves as the company's EVP of Finance, recently sold a significant amount of company stock, totaling over $2.8 million. This transaction was disclosed in regulatory filings with the Securities and Exchange Commission.
On September 9, Micheletti sold 5,197 shares of Axos Financial at an average price of $63.13 per share. The following day, he completed two separate sales transactions: one for 1,000 shares and another for 39,000 shares, both at an average price of $62.35 per share. The sales were executed in multiple trades within the price ranges of $62.87 to $63.55 for the first set of shares and $62.21 to $62.47 for the second set, as indicated in the footnotes of the filing.
The transactions reduced Micheletti’s direct holdings to 423,149 shares after the sales, and an additional footnote revealed that Micheletti is a trustee of the Andrew and Kathleen Micheletti Charitable Remainder Trust, which indicates indirect ownership.
The sales come as part of Micheletti’s portfolio management, and the footnotes in the filing commit to providing full information regarding the number of shares and the prices at which each trade was effected upon request by the SEC staff, the issuer, or a security holder of the issuer.
Investors often monitor insider transactions such as these for insights into executive sentiment toward their company's stock. However, it is important to consider that there can be various reasons for an executive to sell stock, and such sales do not always indicate a lack of confidence in the company's future performance.
Axos Financial, Inc., formerly known as BofI Holding , Inc., is a federally chartered savings institution based in Las Vegas, Nevada. The company provides a range of banking and financial services and is known for its technology-driven approach to banking.
In other recent news, Axos Financial reported fourth-quarter earnings per share (EPS) of $1.80 for fiscal year 2024, in line with market consensus. However, the net interest margin decreased to 4.65%, resulting in net interest income not meeting Piper Sandler's projections. Despite this, the company's earning asset base exceeded expectations due to the retention of a high level of excess liquidity.
Axos Financial set aside lower provisions for credit losses than anticipated, reporting $6 million against Piper Sandler's forecasted $10 million. Piper Sandler subsequently adjusted its outlook on Axos Financial, raising the stock price target to $84 from $68, while maintaining an Overweight rating.
In response to a short seller report questioning Axos Financial's commercial real estate exposure and underwriting practices, the company issued a robust rebuttal. Keefe, Bruyette & Woods maintained an Outperform rating and a $79.00 stock price target for Axos Financial, reflecting positive sentiment towards the company's strong performance.
On a broader scale, Wall Street firms anticipate more aggressive interest rate cuts by the Federal Reserve following a weaker than expected U.S. employment report. Major financial institutions, including BofA Global Research, JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), Citi, TD Securities, and Barclays (LON:BARC), have updated their forecasts on the Federal Reserve's expected actions.
InvestingPro Insights
As investors digest the news of EVP Andrew J. Micheletti's recent stock sales of Axos Financial, Inc. (NYSE:AX), it's valuable to consider the company's financial health and market performance to better understand the context of such insider transactions. According to InvestingPro data, Axos Financial currently boasts a market capitalization of approximately $3.5 billion, indicating a significant presence in the financial sector.
With a P/E ratio of 7.86, the company appears to be trading at a discount relative to its near-term earnings growth, a point underscored by an InvestingPro Tip that highlights the stock's low P/E ratio in comparison to its projected earnings. Additionally, Axos Financial has demonstrated a robust revenue growth of 20.45% over the last twelve months as of Q4 2024, suggesting a strong upward trajectory in its financial performance.
However, it's not without its challenges. Another InvestingPro Tip points out that the company suffers from weak gross profit margins, which could be a concern for investors looking for sustained profitability. Despite this, analysts predict that Axos Financial will be profitable this year, and the company has been profitable over the last twelve months, reflecting its ability to generate positive earnings amidst a competitive banking landscape.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available that could provide further insights into Axos Financial's performance and prospects. These tips can be accessed through the InvestingPro platform, which offers a comprehensive suite of tools and data for investors.
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