Director Julie Cullivan Sells 515 Shares of Axon Enterprise Inc

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On September 11, 2023, Julie Cullivan, a director at Axon Enterprise Inc (AXON, Financial), sold 515 shares of the company. This move is part of a larger trend, as over the past year, the insider has sold a total of 3,708 shares and purchased none.

Julie Cullivan is a seasoned executive with a wealth of experience in the tech industry. She has held various leadership roles in companies such as FireEye, Autodesk, and McAfee. At Axon, she serves as a director, providing strategic guidance and oversight to the company's operations.

Axon Enterprise Inc is a leading provider of law enforcement and public safety solutions. The company's product portfolio includes body cameras, digital evidence management tools, and software for law enforcement agencies. Axon's mission is to protect life and empower communities through technology.

The insider's recent sell-off raises questions about the company's current valuation and future prospects. To understand this better, let's delve into the company's insider trading history and its relationship with the stock price.

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The insider transaction history for Axon Enterprise Inc shows a clear trend towards selling. Over the past year, there have been 30 insider sells compared to just 4 insider buys. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.

On the day of the insider's recent sell, Axon's shares were trading at $214.47, giving the company a market cap of $15.69 billion. This price represents a price-earnings ratio of 156.61, significantly higher than the industry median of 33.73 and the company's historical median price-earnings ratio.

However, when we consider the GuruFocus Value of $222.93, the stock appears to be fairly valued with a price-to-GF-Value ratio of 0.96.

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The GF Value is a proprietary estimate of intrinsic value developed by GuruFocus. It is calculated based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates from Morningstar analysts.

In conclusion, while the insider's recent sell-off and the high number of insider sells over the past year may raise some concerns, the stock appears to be fairly valued according to the GF Value. Investors should keep a close eye on Axon's future performance and any further insider trading activity.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.