One trading day after getting slammed for its third-quarter results, Axon Enterprise's (AXON 8.32%) stock took it on the chin again Thursday. Investors assertively sold out of the security products manufacturer's shares, and as a result their price cratered by over 8%. That fire was fueled by a pair of price target cuts from analysts tracking the stock.
Post-earnings adjustments
Both of those chops were rather dramatic. Morgan Stanley's Meta Marshall reduced her fair value assessment on Axon to $760 per share from the previous $885. Peer analyst Tim Long at Barclays changed his to $702 per share from $861.
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Interestingly, both pundits remain Axon bulls, as they each maintained their equivalent of a buy recommendation on the shares.
It wasn't immediately clear why either pundit made their changes, but they were effected barely one day after Axon published those quarterly figures.
NASDAQ: AXON
Key Data Points
A third quarter to forget
In its third frame Axon posted robust year-over-year revenue improvement of nearly 31%, but investors were concerned with the yawning bottom-line miss. The company's net income not according to generally accepted accounting principles (GAAP) was $1.17 per share, well below the average analyst projection of $1.54.
Some investors were also likely concerned about Axon's announcement that it is acquiring a peer company, privately held Carbyne, for $625 million. They might be concerned that Axon is dipping into its coffers at a time when it should be figuring out ways to bolster its bottom line.
