If You Bought 1 Share of Axon Enterprise at Its IPO, Here's How Many Shares You Would Own Now

Source The Motley Fool

Axon Enterprise (NASDAQ: AXON), the leading manufacturer of police body cameras and Taser devices, trades at over $550 per share and is a potential candidate for a stock split.

Before considering that possibility, it's worth examining how Axon's long-term investors have benefited from holding their shares since the company first began trading on the Nasdaq stock market.

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A brief history of Axon Enterprise stock

Axon was founded in 1993 under the name of its flagship product, Air Taser, with a mission of reducing gun deaths. The company went public in 2001, but its share price floundered until the tragic events of September 11.

Shortly after, airlines began entering into contracts with the company for its redesigned Taser product, the nonlethal stun gun designed to immobilize its target, and the business took off from there. With a soaring stock price, the company underwent three separate stock splits in 2004.

It then introduced its now-namesake body cameras, Axon, in 2008. The stock has continued its up-and-to-the-right growth trajectory.

Due to Axon's three stock splits, each share from its initial public offering (IPO) has now become 12 shares. IPO investors have seen the stock jump 500-fold.

Month, Year Event Shares
June 2001 IPO 1
February 2004 2-for-1 stock split 2
April 2004 2-for-1 stock split 4
November 2004 3-for-1 stock split 12

Data source: Axon Enterprise. Chart by author.

Will Axon Enterprise split its stock again?

In late 2004, CEO Rick Smith said that Axon's splits were intended to "increase market liquidity and enhance the securities' appeal to both private and institutional investors." Given that the stock now trades at $550, the same rationale could support another split.

However, investing solely in anticipation of a stock split is rarely a sound strategy. A more prudent approach is to evaluate the company's fundamentals, an area where Axon continues to excel. With $2.1 billion in revenue in 2024 and a third consecutive year of 30% annual growth, the company's trajectory remains compelling for long-term investors.

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Collin Brantmeyer has positions in Axon Enterprise. The Motley Fool has positions in and recommends Axon Enterprise. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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