Edward James Ratinoff, a director at Axos Financial, Inc. (NYSE:AX), recently sold 4,002 shares of the company's common stock. The shares were sold at an average price of $79.405 each, resulting in a total transaction value of approximately $317,778. Following this sale, Ratinoff holds 46,209 shares directly.
In another transaction, Ratinoff acquired 4,289 restricted stock units (RSUs) on November 14, 2024. These RSUs were granted under the company's Amended and Restated 2014 Stock Incentive Plan as part of his service on the Board of Directors. Each RSU represents a contingent right to receive one share of Axos Financial common stock, and they fully vest on the anniversary date of the grant.
In other recent news, Axos Financial's Q1 2025 report shows an impressive financial performance with a 36% rise in net income to approximately $112 million and a 40% increase in earnings per share to $1.93. The company also saw substantial growth in deposits, increasing by $614 million, primarily in interest-bearing accounts. Despite a challenging lending environment, Axos Financial reported a minor increase in loan balances by 0.3% to $19.3 billion and an improvement in the net interest margin to 5.17%, up 81 basis points year-over-year.
Investment firm Needham has maintained its Buy rating for Axos Financial and increased the price target to $85, citing the company's robust start to the new fiscal year and its management's ability to capitalize on market conditions. However, the company's loan growth was slightly below expectations due to cautious lending in certain segments.
In other developments, Axos Financial held its recent annual meeting with substantial shareholder participation. The election of Class II directors and the ratification of BDO USA, P.C. as the independent public accounting firm for the fiscal year 2025 received overwhelming majority votes. The company's executive compensation proposal received mixed results.
Axos Financial also reported an increase in non-performing assets, particularly in single-family jumbo mortgages and commercial real estate loans. Non-interest expenses rose to approximately $147 million, influenced by new hires and data processing costs. These are recent developments that investors should consider.
InvestingPro Insights
While Edward James Ratinoff's recent stock sale might raise eyebrows, a closer look at Axos Financial's (NYSE:AX) performance reveals a compelling story. According to InvestingPro data, Axos boasts a market capitalization of $4.56 billion and has demonstrated impressive growth. The company's revenue grew by 22.64% over the last twelve months, with an even stronger quarterly revenue growth of 28.49% in Q1 2025.
Axos's financial health appears robust, with a P/E ratio of 9.47, significantly lower than many of its peers in the financial sector. This valuation is particularly attractive when considering the company's growth trajectory. An InvestingPro Tip highlights that Axos is trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential undervaluation.
The company's profitability is also noteworthy, with an operating income margin of 53.78% for the last twelve months. This strong performance is reflected in the stock's price movement, with InvestingPro data showing a remarkable 111.84% total return over the past year.
Investors seeking more comprehensive insights can access 12 additional InvestingPro Tips for Axos Financial, offering a deeper understanding of the company's financial position and market performance.
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