AxoGen Drops 4.48% on Earnings Miss, Hits 2024 Low

AxoGen (AXGN) shares plummeted 4.48% today, hitting their lowest level since August 2024, with an intraday decline of 6.85%.

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.

AxoGen's stock price decline on May 13, 2025, can be attributed to several factors. The company reported its First Quarter 2025 earnings, where it missed EPS expectations. Despite revenue rising to $48.6 million, up 17% from the same period last year, the company posted a net loss of $3.83 million, which narrowed by 42% from the previous period. This earnings miss likely contributed to negative sentiment among investors.

AxoGen's financial performance also indicates ongoing challenges. The company has a negative net margin of 7.91% and a negative return on equity of 14.91%, suggesting that the company is still facing significant financial hurdles.

Technical indicators further support the bearish outlook. The stock has broken its short-term trend downward, showing sell signals from both short and long-term Moving Averages. Additionally, there is a general sell signal from the Moving Average Convergence Divergence (MACD), indicating further potential decline until a new bottom is found.

Market volatility has also played a role in the stock's decline. The stock experienced a 32% decline over the past week, with increased volume on falling prices, suggesting increased risk and a negative outlook.