Axon Enterprise (Axon (AXON)) shares jumped nearly 10% on Monday after a report revealed that President Donald Trump bought up to $5 million worth of the company's stock just weeks before U.S. Immigration and Customs Enforcement (ICE) put out a $220 million procurement notice for Tasers.

According to federal disclosures filed in May, Trump purchased between $1 million and $5 million of Axon stock on Feb. 10. On Feb. 24, ICE issued a notice seeking about 17,800 new Tasers, plus unlimited cartridges and training. The timing is certainly interesting, but CNBC, which broke the story, found no evidence that Trump was involved in or aware of the procurement process. Nor is there any sign that contracting officials knew about Trump's stock purchase or that Axon knew Trump was a shareholder.

The procurement notice doesn't name Axon specifically, but it doesn't have to. Investment firm Brown Advisory notes that Axon makes nearly 90% of all Tasers in the U.S. Procurement reviewers and policing experts cited in the report say the specifications in the ICE notice align exclusively with Axon's products. So while the notice is part of standard federal procurement and no contract has been awarded yet, the market is clearly connecting the dots.

The stock purchase also came shortly after an incident in Minneapolis where federal agents fatally shot two U.S. citizens during an immigration crackdown protest, adding a layer of political context to the timing.

The Trust Factor

The White House has said Trump's investments are held in an independently managed trust, meaning he doesn't make active trading decisions. But ethics filings show this isn't the first time Trump has owned stock in a company before publicly supporting it or making policy moves that benefit it. Past examples include stakes in Dell Technologies (DELL) and NVIDIA (NVDA) before praising them or enacting policies that helped their international business.

Just last week, Trump expressed regret over selling his IBM (IBM) stock too early, saying, "I used to have that stock when it was much much lower. I brilliantly sold it when I became president. That was not a good move." That comment came after he praised IBM's domestic chip fabrication advancements.

So the pattern is there, even if the trust structure is supposed to prevent conflicts. Whether this latest trade is a coincidence or something more, Axon shareholders are certainly happy. The stock was up 9.89% at $510.79 at the time of publication.