Gregory Garrabrants, President and CEO of Axos Financial, Inc. (NYSE:AX), recently reported selling a significant amount of company stock. On November 6, Garrabrants sold a total of 125,000 shares, generating approximately $10.2 million. The sales occurred at prices ranging from $81.14 to $82.35 per share.
In addition to these sales, Garrabrants donated 5,200 shares, valued at $424,060, to a charitable fund, transferring the stock at $81.55 per share. Following these transactions, Garrabrants holds 1,346,377 shares directly and additional shares through indirect ownership structures, including a 401(k) plan and a trust.
In other recent news, Axos Financial has been the subject of recent analysis by Needham, which maintained its Buy rating on the company and increased the price target to $85.00. This comes after Axos Financial reported robust growth for Q1 2025, with net income rising by 36% to approximately $112 million, and earnings per share increasing by 40% to $1.93. The company also saw a significant increase in deposits, mainly in interest-bearing accounts, by $614 million.
Despite a challenging lending environment, Axos Financial reported a slight increase in loan balances and an improvement in net interest margin. However, the company fell short of loan growth expectations due to cautious lending in certain segments. Needham's analyst noted that Axos Financial's tangible book value and earnings per share are expanding at a rate that outpaces its banking and financial technology counterparts.
Regarding future developments, 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. Analysts from Needham also anticipate that an increase in net new assets will contribute to fee income growth. However, investors should note the recent increase in non-performing assets and non-interest expenses due to new hires and data processing costs.
InvestingPro Insights
Axos Financial, Inc. (NYSE:AX) has been experiencing a strong market performance, with InvestingPro data showing a remarkable 114.87% price total return over the past year. This aligns with the recent stock sales by CEO Gregory Garrabrants, potentially indicating his view on the company's current valuation.
The company's stock is trading near its 52-week high, with the price at 97.2% of its peak. This strength is further reflected in Axos's recent performance, with a 33.72% price return over the last month and a 22.43% return in just the past week.
Despite the impressive stock performance, Axos is trading at a relatively low P/E ratio of 9.57, which InvestingPro Tips highlight as attractive relative to the company's near-term earnings growth. This suggests that there might still be value in the stock, even after its significant run-up.
It's worth noting that Axos has shown strong financial performance, with revenue growth of 22.64% over the last twelve months and an impressive operating income margin of 53.21%. These figures support the positive market sentiment surrounding the company.
Investors considering Axos might be interested to know that InvestingPro offers 13 additional tips for this stock, providing a more comprehensive analysis for those looking to dive deeper into the company's prospects.
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