Axogen Shares Plunge 23.18% on Earnings Miss

Axogen (AXGN) shares plummeted 23.18% today, marking the fourth consecutive day of decline, with a total drop of 26.50% over the past four days. The stock price hit its lowest level since August 2024, experiencing an intraday decline of 32.89%.

The strategy of buying AXGN shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years, with a 7.56% annualized gain. However, the maximum drawdown of 16.62% during the same period indicates that this strategy is not immune to short-term volatility. Investors should consider their risk tolerance and time horizon before adopting this approach.

Axogen reported its first-quarter 2025 financial results, revealing a quarterly loss of $0.02 per share, which exceeded the Zacks Consensus Estimate of a $0.01 loss. Despite the loss, the company managed to surpass revenue expectations, generating $48.56 million compared to the estimated $48.35 million. This represents a significant improvement from the $41.38 million in revenue reported a year ago. Axogen has consistently exceeded consensus revenue estimates over the past four quarters, indicating a positive trend in its financial performance.

Raymond James analyst Jayson Bedford has adjusted the price target for Axogen from $25 to $21 while maintaining an Outperform rating. This adjustment reflects the analyst's assessment of the company's current market conditions and future prospects. Additionally, the appointment of Lindsey Hartley as the new Chief Financial Officer, effective May 12, 2025, is expected to bring fresh perspectives and strategic insights to the company, potentially influencing its future performance.