In a recent filing with the Securities and Exchange Commission, Axos Financial, Inc. (NYSE:AX) disclosed that Executive Vice President and Chief Credit Officer, Thomas M. Constantine, sold a significant portion of his holdings in the company. On November 6, Constantine sold 4,555 shares of Axos Financial common stock at an average price of $78.76 per share, amounting to a total transaction value of approximately $358,751.
Following the sale, Constantine retains direct ownership of 17,938 shares in the company. Additionally, he holds 2,581 shares indirectly through a 401(k) plan. This transaction is part of the routine disclosures required by the SEC to provide transparency into the trading activities of company insiders.
In other recent news, Axos Financial has reported robust growth for Q1 2025, with a notable increase in net income and earnings per share. Net income rose by 36% to approximately $112 million, and earnings per share saw a 40% increase to $1.93. Deposits also experienced significant growth, increasing by $614 million, mainly in interest-bearing accounts. Needham, a notable analyst firm, maintained its Buy rating on Axos Financial and increased the price target to $85.00 from the previous $82.00, following the company's strong performance. The firm's analyst pointed out Axos Financial's tangible book value (TBV) and earnings per share (EPS) are expanding at a rate that outpaces its banking and financial technology counterparts. This growth is seen as indicative of Axos's ability to create a long-term growth trajectory. 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 net interest margin to 5.17%, up 81 basis points year-over-year. These are recent developments that investors should keep an eye on.
InvestingPro Insights
Axos Financial's recent insider sale by Executive Vice President Thomas M. Constantine comes at a time when the company's stock is performing exceptionally well. According to InvestingPro data, Axos has seen a remarkable 114.87% price total return over the past year, with a 33.72% return in just the last month. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 97.2% of that peak.
The company's financial metrics also paint a positive picture. Axos boasts a P/E ratio of 9.57, which is relatively low compared to its earnings growth, as highlighted by one of the InvestingPro Tips. This suggests that the stock may still be undervalued despite its recent gains. Additionally, with a market capitalization of $4.62 billion and a revenue of $1.13 billion in the last twelve months, Axos demonstrates solid financial footing.
InvestingPro Tips further reveal that Axos is expected to remain profitable this year, continuing its trend of profitability over the last twelve months. However, it's worth noting that the company does not pay a dividend to shareholders, which may be a consideration for income-focused investors.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Axos Financial, providing a more comprehensive view of the company's prospects and potential risks.
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