James John Court, a director at Axos Financial Inc. (NYSE:AX), recently sold 16,887 shares of the company's common stock, according to a regulatory filing. The shares were sold at a weighted average price of $67.29, resulting in a total transaction value of approximately $1.14 million. Following this sale, Court retains direct ownership of 40,970 shares. Additionally, Court holds 1,200 shares indirectly through an IRA account in the name of his spouse, Susan M. Court.
In other recent news, Axos Financial has been lauded by Needham for its strong start to the first quarter of fiscal year 2025, outperforming Wall Street's revenue and earnings expectations. Needham maintained its Buy rating on Axos Financial and increased the price target to $85.00 from the previous $82.00, citing a significant positive variance in the company's net interest margin. This, according to Needham, suggests that Axos Financial is effectively handling the challenges of a declining rate environment.
Axos Financial's tangible book value and earnings per share are expanding at a rate that outpaces its banking and FinTech counterparts, indicating its potential for long-term growth. The company has reported a 36% increase in net income to about $112 million and a 40% increase in earnings per share to $1.93 in Q1 2025. Deposits also saw significant growth, rising by $614 million, primarily in interest-bearing accounts.
Despite a challenging lending environment, Axos Financial reported a slight increase in loan balances to $19.3 billion and an improvement in net interest margin to 5.17%. However, the company fell short of loan growth expectations due to cautious lending in certain segments. Looking forward, Axos Financial aims for high single-digit to low-teens loan growth in fiscal year 2025, supported by a strong loan pipeline of $1.9 billion. These are recent developments that investors should consider.
InvestingPro Insights
As James John Court's recent sale of Axos Financial Inc. (NYSE:AX) shares makes headlines, investors may be curious about the company's current financial standing and market performance. According to InvestingPro data, Axos Financial has a market capitalization of $4.55 billion and is trading at a P/E ratio of 9.61, which suggests a relatively low valuation compared to its earnings.
The company's stock has shown impressive performance, with a 115.4% price total return over the past year and a 49.36% return year-to-date. This strong momentum is reflected in an InvestingPro Tip, which notes that Axos is trading near its 52-week high, with the current price at 96.67% of that peak.
Despite the recent insider sale, Axos Financial appears to be in a solid financial position. The company boasts an operating income margin of 53.21% for the last twelve months as of Q1 2025, indicating efficient operations. Additionally, an InvestingPro Tip highlights that Axos is trading at a low P/E ratio relative to its near-term earnings growth, which could signal potential value for investors.
It's worth noting that InvestingPro offers 13 additional tips for Axos Financial, providing a more comprehensive analysis for those seeking deeper insights into the company's prospects and valuation.
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