TASER maker Axon Enterprise Just Saw a $4.78 Million Insider Stock Purchase

Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look. In this report, we are going to highlight a large insider purchase at Axon Enterprise Inc (AXON:US). Axon Enterprise is a technology company that specializes in law enforcement and security solutions. It is best known for its TASER products, which are used by law enforcement agencies worldwide. The company is listed on the Nasdaq and currently has a market cap of around $14.37 billion. 

$4.78 Mil Insider Purchase 

Our data shows that on June 23, board member Hadi Partovi purchased 25,000 AXON shares at an average price of $191.09 per share. This trade cost the insider around $4.78 million and increased his holding to 413,817 shares.

Large Buy 

This trade is notable for several reasons. 

Firstly, it’s a large purchase near one of the stock’s highest closing prices. The fact that Mr. Partovi has spent nearly $5 million on stock now indicates that he believes business performance, which has been strong recently, is about to get even stronger. 

Secondly, Mr. Partovi has considerable investment experience. In the past, he has invested in a range of tech companies including Facebook, Dropbox, Uber, Airbnb, SpaceX, and Zappos. Many of these companies have gone on to be excellent investments for early-stage investors. 

Full-year Guidance Raised 

Axon Enterprises recently produced a good set of Q1 results. 

For the period, revenue came in at a record $343 million, up 34% year on year. Meanwhile, Annual Recurring Revenue (ARR) grew 49% year on year to $520 million. Net income was $45 million versus $29 million in Q4 2022 and $55 million in Q1 2022. 

On the back of these results, the company raised its full-year outlook to 22% revenue growth while maintaining its guidance for an adjusted EBITDA margin of 20%. 

“Our pipeline is being fueled by the underlying strength of our business model, Axon's culture of innovation and meaningful, long-term partnerships with our customers, who look to us for the newest, most advanced technology,” wrote the company in the Q1 results. “As we continue to invest in advancing our mission to protect life, we remain committed to delivering strong profitability and cash flow.” 

Given the strong growth here, we see the insider buying as a bullish development.