Axos Financial, Inc. (NYSE:AX), a federally chartered savings institution, announced the appointment of Ann Gill as the company's Senior Vice President and Chief Accounting Officer. The Board of Directors confirmed the appointment on Monday, effective immediately.
Ms. Gill, a Certified Public Accountant in New York, has been with Axos Financial since October 2019, initially serving as Senior Vice President, Corporate Controller. Her previous experience includes a role as Chief Accounting Officer–Global Controller at Encore Capital (NASDAQ:ECPG) Group, alongside various other financial controller positions within the industry. Gill also brings approximately 15 years of public accounting experience.
In her new role, Ms. Gill takes over the principal accounting officer responsibilities from Derrick K. Walsh, who remains the Executive Vice President and Chief Financial Officer. As part of her compensation package, Ms. Gill will receive a salary commensurate with her role and participate in the company's standard benefit and compensation plans. Additionally, she will enter into the company’s standard indemnification agreement for directors and officers..
In other recent news, Axos Financial reported an earnings per share (EPS) of $1.80 for the fiscal year 2024's fourth quarter, which was in line with market consensus but slightly below Piper Sandler's expectation by one cent. This led Piper Sandler to adjust its price target for Axos Financial to $84 from $68, while maintaining an Overweight rating on the stock. The company's net interest income did not meet Piper Sandler's projections as the net interest margin decreased to 4.65%. However, Axos Financial's provisions for credit losses were lower than anticipated at $6 million, and a favorable tax rate helped offset these differences.
Simultaneously, Wall Street firms have revised their forecasts, expecting more aggressive interest rate cuts by the Federal Reserve due to a weaker than expected U.S. employment report for June. Major financial institutions such as BofA Global Research, JPMorgan, Goldman Sachs, Citi, TD Securities, and Barclays have updated their forecasts on the Federal Reserve's expected actions.
Keefe, Bruyette & Woods maintained an Outperform rating and a $79.00 stock price target for Axos Financial, even after a short seller report questioned the company's commercial real estate exposure and underwriting practices. The company issued a strong rebuttal to the report, which was seen as a positive move by the analysts.
Hindenburg Research, however, has established a short position in Axos Financial, raising concerns about the bank's underwriting standards and its involvement in the commercial real estate market.
InvestingPro Insights
As Axos Financial, Inc. (NYSE:AX) welcomes Ann Gill into her new role as Senior Vice President and Chief Accounting Officer, the company's financial health and market performance are of interest to investors. According to InvestingPro data, Axos has a market capitalization of $3.55 billion, with a compelling price-to-earnings (P/E) ratio of 8, which is attractive when paired with near-term earnings growth. This is particularly relevant as InvestingPro Tips suggest the stock is trading at a low P/E ratio relative to near-term earnings growth, indicating that the stock may be undervalued compared to its earnings potential.
Furthermore, the company has shown a strong return over the last year, with a price total return of 72.63%. This robust performance could be a sign of investor confidence in the company's strategy and execution. Despite concerns about weak gross profit margins, Axos has remained profitable over the last twelve months, a testament to its financial resilience. Additionally, analysts predict that Axos will continue to be profitable this year, supporting the positive outlook for the company's financial future.
For investors seeking more in-depth analysis, there are over 7 additional InvestingPro Tips available for Axos Financial, which can be found on the platform. These tips could provide further guidance on whether Axos Financial’s current market position aligns with an individual's investment strategy.
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