83% Institutional Ownership Gives Axos Financial a Strong Foundation

Axos Financial has 83% institutional ownership, with institutions owning the lion's share of the company. The top 10 shareholders own 50% of the company, while insiders have sold recently. As institutional investors have access to large amounts of capital, their market moves tend to receive scrutiny from retail investors, making their investment in the company a positive attribute.

Axos Financial ($AX) reported its Q2 2025 earnings on Wednesday, July 30th, with a notable performance that exceeded analyst expectations. The company posted earnings of $1.94 per share, surpassing estimates of $1.85 by $0.09 [1]. Revenue for the quarter reached $321,450,000, slightly missing estimates by $205,816 [1].

The quarter's performance was bolstered by robust loan growth, a net interest margin expansion, and improved credit quality. Net loan growth reached $856 million, marking a 4.2% increase from the previous quarter or 16% on an annualized basis [2]. The company also achieved a net interest margin expansion of 6 basis points, reaching 4.84% for the quarter [2]. These positive developments highlight Axos Financial's strong lending capabilities and effective interest rate management.

Despite facing challenges such as increased noninterest expenses and slight pressure on new loan yields, the company's overall financial health remains positive. Total noninterest expenses rose by 3% from the prior quarter, with professional services expenses increasing to $10.4 million [2]. Loan yield pressure reflects pricing challenges in certain lending categories, but the company's strategic financial maneuvers indicate its ability to manage these pressures effectively.

Institutional investors have played a significant role in Axos Financial's success, with 83% of the company's shares owned by institutions. The top 10 shareholders hold 50% of the company's shares, underscoring the strong institutional ownership and support [1]. Insider trading activity has also been notable, with insiders selling shares, which may indicate a cautious outlook or a strategic move to lock in gains [1].

Analysts have been bullish on Axos Financial, with 5 firms issuing buy ratings and 0 firms issuing sell ratings in the past several months [1]. The median price target is $90.0, with several analysts raising their targets in recent reports. For instance, Raymond James Financial reaffirmed an "outperform" rating and set a $95.00 price objective [3]. Needham & Company LLC raised their price target from $92.00 to $102.00, giving the company a "buy" rating [3].

Axos Financial's Board of Directors announced a $100 million stock buyback program, indicating management's belief that the stock is undervalued [3]. This move is a positive signal for shareholders, as it demonstrates management's confidence in the company's future prospects.

In conclusion, Axos Financial's Q2 2025 earnings report showcased strong financial performance, driven by significant loan growth, net interest margin expansion, and improved credit quality. The company's robust institutional ownership and positive analyst sentiment provide a solid foundation for continued growth and profitability. Investors and financial professionals can remain optimistic about Axos Financial's trajectory in the coming quarters.

References:
[1] Quiver Quantitative. (n.d.). AXOS FINANCIAL Earnings Results: $AX Reports Quarterly Earnings. Retrieved from https://www.quiverquant.com/news/AXOS+FINANCIAL+Earnings+Results%3A+%24AX+Reports+Quarterly+Earnings
[2] The Globe and Mail. (n.d.). Axos Financial’s Earnings Call: Strong Growth and Positive Outlook. Retrieved from https://www.theglobeandmail.com/investing/markets/stocks/AX/pressreleases/33828889/axos-financials-earnings-call-strong-growth-and-positive-outlook/
[3] MarketBeat. (n.d.). Axos Financial (NYSE:AX) Upgraded at Wall Street Zen. Retrieved from https://www.marketbeat.com/instant-alerts/axos-financial-nyseax-upgraded-at-wall-street-zen-2025-08-02/