Axos Financial (NYSE:AX) Shares Gap Up After Better-Than-Expected Earnings

Axos Financial, Inc (NYSE:AX) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $94.64, but opened at $97.99. Axos Financial shares last traded at $97.8190, with a volume of 40,748 shares traded.

The company reported $2.25 EPS for the quarter, topping the consensus estimate of $2.07 by $0.18. Axos Financial had a return on equity of 17.36% and a net margin of 22.66%.The business had revenue of $385.09 million for the quarter, compared to analyst estimates of $345.89 million. During the same quarter in the previous year, the firm earned $1.82 EPS. The company’s quarterly revenue was up 25.1% compared to the same quarter last year.

Axos Financial News Summary

Here are the key news stories impacting Axos Financial this week:

• Positive Sentiment: Q2 results beat expectations — Axos reported $2.25 EPS (vs. $2.07 consensus) and $385.1M revenue (vs. $345.9M est.), with a 22.4% net margin and solid ROE; revenue rose ~25% YoY, underscoring operating leverage. Read More.
• Positive Sentiment: Management guided to low- to mid‑teens loan growth for 2026 as it integrates the Verdant acquisition, signaling an emphasis on loan book expansion as a growth driver. Read More.
• Positive Sentiment: Analyst upgrades/price-target raises: Jefferies raised its target to $115 and keeps a Buy rating (largest reported upside), Needham raised to $110 and retains Buy, and Keefe, Bruyette & Woods raised to $110 (Market Perform) — these lifts support further upside expectations. Read More.
• Neutral Sentiment: Investor materials and earnings call are available — slides, the conference-call transcript and presentation give more detail on margins, capital, and the Verdant integration for those modeling FY2026. Read More.

Analyst Upgrades and Downgrades

AX has been the subject of several analyst reports. DA Davidson increased their price target on shares of Axos Financial from $107.50 to $112.00 and gave the company a “buy” rating in a research note on Friday. Weiss Ratings reiterated a “buy (b)” rating on shares of Axos Financial in a report on Monday, December 29th. Keefe, Bruyette & Woods increased their price objective on Axos Financial from $100.00 to $110.00 and gave the stock a “market perform” rating in a research report on Friday. Jefferies Financial Group lifted their target price on Axos Financial from $110.00 to $115.00 and gave the company a “buy” rating in a research report on Friday. Finally, Needham & Company LLC upped their price target on Axos Financial from $107.00 to $110.00 and gave the company a “buy” rating in a research note on Friday. Six investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $104.50.

Insiders Place Their Bets

In other news, Director Edward James Ratinoff sold 2,145 shares of the firm’s stock in a transaction on Friday, December 5th. The stock was sold at an average price of $84.59, for a total transaction of $181,445.55. Following the completion of the transaction, the director directly owned 46,209 shares in the company, valued at $3,908,819.31. This trade represents a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Tamara N. Bohlig sold 2,145 shares of Axos Financial stock in a transaction on Monday, December 8th. The shares were sold at an average price of $86.23, for a total value of $184,963.35. Following the completion of the sale, the director directly owned 12,919 shares of the company’s stock, valued at $1,114,005.37. The trade was a 14.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 4.85% of the stock is owned by corporate insiders.

Institutional Trading of Axos Financial

Several hedge funds have recently modified their holdings of the stock. Ashton Thomas Private Wealth LLC grew its holdings in Axos Financial by 3.3% during the fourth quarter. Ashton Thomas Private Wealth LLC now owns 3,495 shares of the company’s stock worth $301,000 after acquiring an additional 113 shares during the period. Bessemer Group Inc. boosted its position in shares of Axos Financial by 59.6% during the 3rd quarter. Bessemer Group Inc. now owns 348 shares of the company’s stock worth $29,000 after purchasing an additional 130 shares in the last quarter. Vanguard Personalized Indexing Management LLC boosted its position in shares of Axos Financial by 3.5% during the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 3,889 shares of the company’s stock worth $329,000 after purchasing an additional 131 shares in the last quarter. Salomon & Ludwin LLC grew its stake in shares of Axos Financial by 43.2% during the 4th quarter. Salomon & Ludwin LLC now owns 441 shares of the company’s stock worth $39,000 after purchasing an additional 133 shares during the period. Finally, Cetera Investment Advisers increased its holdings in shares of Axos Financial by 1.8% in the 2nd quarter. Cetera Investment Advisers now owns 8,197 shares of the company’s stock valued at $623,000 after purchasing an additional 141 shares in the last quarter. 83.79% of the stock is currently owned by institutional investors and hedge funds.

Axos Financial Price Performance

The company has a debt-to-equity ratio of 0.54, a current ratio of 1.12 and a quick ratio of 1.12. The company’s 50 day moving average is $88.57 and its 200 day moving average is $86.08. The stock has a market cap of $5.62 billion, a price-to-earnings ratio of 12.57 and a beta of 1.26.

About Axos Financial

Axos Financial, Inc (NYSE: AX) is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.