Conclusion, Investment Implications, Strategy

Axonics, Inc. (AXNX) is amid favorable conditions to resume its April 2020 Strategic advance.  A sustained rise above the $62.08 area would target a rise to 79.81.  This is an Asbury Value trade idea.

Analysis and Rationale

Axonics, Inc. (AXNX), a medical technology company, engages in the development and commercialization of sacral neuromodulation (SNM) systems. The company’s SNM systems are used to treat patients with overactive bladder, including urinary urge incontinence and urinary urgency frequency, as well as fecal incontinence and non-obstructive urinary retention. Its proprietary rechargeable SNM System (r-SNM) delivers mild electrical pulses to the targeted sacral nerve to restore normal communication to and from the brain to reduce the symptoms of bladder and bowel dysfunction. The company also offers Bulkamid, a urethral bulking agent to treat female stress urinary incontinence. It sells its products through a direct salesforce and distributors in the United States, the United Kingdom, Germany, France, Nordic countries, and internationally. The company was formerly known as Axonics Modulation Technologies, Inc. and changed its name to Axonics, Inc. in March 2021. Axonics, Inc. was incorporated in 2012 and is headquartered in Irvine, California.

The rightmost green highlights in Chart 1 below show that AXNX is currently rebounding from an Oct 18th test of its 200-day moving average, a widely-watched major trend proxy currently situated at $61.05 (upper panel) while also rebounding from monthly (our Tactical time period) oversold extremes (lower panel).  The other green highlights show that similar oversold extremes on Jly 20th and May 14th coincided with the resumption of AXNX’ss larger Strategic advance and rises to new all-time highs.  These conditions set up a low-risk opportunity to buy an uptrending stock in a potentially low-risk/high reward environment while situated just above major support.  

Chart 1

Table 1 below shows that an upside target of $79.81 and a protective stop placed below the $62.08 area, a long entry price of $65.42 would provide a 1:4.3 risk/reward ratio (risking $1.00 to make $4.30) with an initial risk of 5.1%.

Table 1

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