What Happened?
Shares of self defense company AXON (NASDAQ: AXON) jumped 2.8% in the afternoon session after investor optimism was buoyed by a strong consensus among Wall Street analysts.
The stock gained even as Morgan Stanley trimmed its price target on the stock to $713 from $760, though the firm kept its "Overweight" rating. The broader analyst community held a "Strong Buy" consensus, which appeared to outweigh the single target adjustment.
After the initial pop the shares cooled down to $566.10, up 2.9% from previous close.
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What Is The Market Telling Us
Axon’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 2.7% after the company secured two multi-million dollar contracts with police departments for its AI-powered technology, including body cameras and drones.
The City of Rialto approved a nine-year, $14.3 million deal for Axon's surveillance and software offerings. Similarly, Kennewick, Washington, greenlit a $10.6 million, 10-year investment in the company's police tech. These deals signaled growing demand for Axon's products. The positive news appeared to outweigh other company developments. Axon also entered into agreements to exchange about $177.9 million of its convertible senior notes for cash and common stock. Additionally, regulatory filings disclosed that the company's President and CEO sold a combined total of over $16.5 million in stock.
Axon is down 5.1% since the beginning of the year, and at $566.10 per share, it is trading 35% below its 52-week high of $870.97 from August 2025. Investors who bought $1,000 worth of Axon’s shares 5 years ago would now be looking at an investment worth $4,516.
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