David Park, Executive Vice President of Commercial Banking and Treasury at Axos Financial, Inc. (NYSE:AX), recently sold 1,427 shares of the company's common stock. The shares were sold at a price of $85.25 each, totaling approximately $121,651. Following this transaction, Park holds 14,849 shares directly, with an additional 1,378 shares held indirectly through a 401(k) plan.
In other recent news, Axos Financial has reported impressive earnings and revenue results for the first quarter of fiscal year 2025. The company's net income rose by 36% to approximately $112 million, and earnings per share increased by 40% to $1.93. Deposits saw a significant growth of $614 million, primarily in interest-bearing accounts. Despite a challenging lending environment, Axos Financial reported a slight 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.
Needham, an investment firm, has maintained its Buy rating for Axos Financial and increased the price target to $85, citing the company's strong start to the new fiscal year and its management's ability to capitalize on market conditions. However, Axos Financial did see an increase in non-performing assets, particularly in single-family jumbo mortgages and commercial real estate loans. Non-interest expenses also rose to approximately $147 million, influenced by new hires and data processing costs.
In further developments, Axos Financial disclosed the outcomes of the shareholder votes from its recent annual meeting, with substantial participation of 86.18% of eligible shares. The shareholders ratified the appointment of BDO USA, P.C. as the independent public accounting firm for the fiscal year 2025 with an overwhelming majority. These are recent developments that investors should consider.
InvestingPro Insights
As David Park's recent stock sale catches investor attention, it's worth examining Axos Financial's current financial position and market performance. According to InvestingPro data, Axos Financial boasts a market capitalization of $4.8 billion, with a P/E ratio of 9.99, suggesting the stock may be undervalued relative to its earnings.
The company's revenue growth is particularly noteworthy, with a 22.64% increase over the last twelve months and an even more impressive 28.49% growth in the most recent quarter. This robust top-line expansion is complemented by a strong operating income margin of 53.78%, indicating efficient management of operational costs.
Investors considering Axos Financial should note two key InvestingPro Tips. First, the company is trading at a low P/E ratio relative to its near-term earnings growth, which could signal an attractive entry point for value-oriented investors. Second, Axos has demonstrated a strong return over the last month, with the stock price increasing by 30.13% in that period.
These insights align with the company's overall performance, as evidenced by its year-to-date price total return of 54.56% and an impressive one-year return of 121.15%. Such strong momentum may provide context for executive stock transactions like Park's recent sale.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips on Axos Financial, providing a deeper dive into the company's financial health and market position.
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