Axos Financial, Inc. (NASDAQ:AX), has seen recent activity both in its executive ownership structure and its quarterly earnings reports. Specifically, Michael Watson, who serves as the Executive Vice President and Head of Axos Securities at the firm, executed a sale of company shares on May 19, 2026.
Mr. Watson sold a total of 1,653 shares of Axos Financial's common stock, valued at $138,470. These transactions were structured across several separate trades, with the selling prices ranging from $83.75 to $83.79 per share. The weighted average sales price for these shares was determined to be $83.769.
Following this reported activity, Mr. Watson's direct holdings in Axos Financial common stock stand at 4,592 shares. Furthermore, his indirect stake through a 401(k) Plan accounts for an additional 777 shares.
In relation to the company’s valuation, the current market price of the stock was reported at $86.16, accompanied by a P/E ratio of 10.47. While InvestingPro analysis suggests that Axos Financial may currently appear overvalued when compared to its calculated Fair Value, investment analysts have maintained specific price targets for the equity, projecting values between $105 and $114.
The company recently released its third-quarter earnings results for fiscal year 2026. The reported diluted earnings per share (EPS) was $2.15. This figure represents a substantial increase of 18.7% compared to the same quarter in the previous year. However, this actual performance fell slightly below the forecasted EPS estimate of $2.17.
On the income statement side, Axos Financial's net income rose to $124.7 million. This represents an increase from $105.2 million recorded during the third quarter of the preceding year. Despite reporting an earnings miss relative to analyst forecasts, the firm received a positive rating adjustment. Raymond James increased its price target for Axos Financial to $110, up from a previous target of $100, while maintaining a Strong Buy rating.
The analysts at Raymond James noted that potential credit migration might have influenced the stock's performance, although they observed that overall market trends remained favorable. The company also experienced a rare net interest income miss. This shortfall occurred after Axos Financial paid down higher-cost deposits using borrowings, an action taken in anticipation of the closure of the Jenius deal.
These mixed developments paint a picture of ongoing strategic financial adjustments and continued growth outlook for Axos Financial. The reported increases in net income and the positive revision of analyst price targets suggest underlying strength, even when weighed against the minor EPS miss and specific operational challenges like the net interest income shortfall.
Risks
- Axos Financial reported a rare net interest income miss following its decision to use borrowings for paying down higher-cost deposits, which may signal temporary liquidity or structural adjustments.
- The current analysis from InvestingPro suggests that Axos Financial might be overvalued relative to its calculated Fair Value, despite positive analyst price target revisions.
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