Axon Shares Rally 4.96% on Record Volume Surpassing $660M Nearing Top 130 Market Activity as Analysts Boost Targets

Axon Enterprise (AXON) surged 4.96% on August 18, with a trading volume of $0.66 billion, a 51.07% increase from the previous day, ranking 130th in market activity. The stock’s recent performance has drawn attention amid analyst activity and strategic developments.

Analysts from TD Cowen reiterated a "Buy" rating with a $925 price target, citing Axon’s 32.41% revenue growth and robust gross margins. The firm highlighted expansion drivers such as AI initiatives, drones, and international growth, despite a 13% post-earnings pullback. Raymond James and Needham also raised their targets to $855 and $870, respectively, emphasizing strong Q2 results and order volume. Craig-Hallum upgraded to "Buy" with a $900 target, while BofA Securities set a $1,000 target, reflecting confidence in Axon’s momentum across business segments.

Market reactions underscore Axon’s volatility, with 22 moves exceeding 5% in the past year. The stock remains 9.4% below its 52-week high but has gained 32.2% year-to-date. Analysts note that the recent rally follows a 15.4% jump in early August after Axon reported a 33% revenue increase to $669 million and raised full-year guidance. The company’s Annual Recurring Revenue (ARR) jumped 39% to $1.2 billion, signaling sustained demand for its software and services.

Backtest analysis of AXON’s performance after a 5% intraday surge showed favorable short-to-medium-term gains. The 3-Day win rate was 57.14%, the 10-Day win rate 60.30%, and the 30-Day win rate 62.56%. The maximum return during the backtest period was 12.01% on day 59, indicating continued momentum post-significant moves.