Locking in Massive Gains on This Public Safety Holding
We continue to like the evolving story, but we have to remain disciplined.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
AXON | Sell | 26 | 874 | 220 | 3.6 |
After you receive this Alert, we will sell 26 shares of Axon Enterprise AXON at or near $874. Following the trade, AXON shares will account for roughly 3.6% of Pro Portfolio holdings.
We are taking advantage of the sharp move in AXON shares following the company’s beat-and-raise June quarter, which is in part fueled by short-covering. While we continue to like the company’s mix shift toward the higher-margin Software and Services segment, which should continue in the coming quarters, with the shares above our revised price target of $860, we are opting to lock in a slice of the more than 80% gain since their early April low.
Not only is that a far larger gain compared to the 25% move in the S&P 500, but it has also landed AXON shares in overbought territory. We touched on that Tuesday during our discussion of AXON shares with Yahoo Finance! and following the incremental move higher Wednesday, it is prompting our prudent move with the stock.
As we've discussed with June quarter results for ServiceNow NOW and Palantir PLTR, AI adoption is accelerating and that bodes well for Axon’s efforts in the space. We will look for an update on that progress in early September when Axon presents at the Goldman Sachs Communicopia conference. Between now and then, and in keeping with our Two rating, we’ll look to revisit potential pickup points as the shares move past near-term short-covering.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the “+” next to the position’s ticker to sort Purchase and Date data.)
At the time of publication, TheStreet Pro Portfolio was long AXON, NOW and PLTR.
