According to a report from Bloomberg.com, AvidXchange Holdings, Inc. (NASDAQ:AVDX) has received an average rating of “Moderate Buy” from nine different brokerages that currently cover the company. Of these, one analyst has given the stock a sell rating, one has assigned it a hold rating, and seven have issued a buy rating. The average target price for the stock over the next year, as predicted by these brokerages, is $12.91.
On Thursday, shares of NASDAQ AVDX opened at $9.74. Over the course of the past year, AvidXchange’s stock has traded as low as $7.02 and as high as $12.75. The company has a current ratio and quick ratio of 1.32 each, indicating its ability to meet short-term financial obligations. Additionally, AvidXchange holds a debt-to-equity ratio of 0.21.
As for its market capitalization, AvidXchange currently stands at $1.97 billion with a price-to-earnings ratio of -22.65 and a beta of 0.62. The company carries both its 50-day simple moving average ($10.75) and 200-day simple moving average ($9.52).
Recent reports have shown that hedge funds have been actively buying and selling shares in AvidXchange Holdings, Inc.. For instance, Russell Investments Group Ltd., Quarry LP, Ensign Peak Advisors Inc., Tower Research Capital LLC TRC, and Kingfisher Capital LLC acquired positions in the company at varying times throughout the year.
In its most recent quarterly earnings report on August 2nd, AvidXchange reported EPS (earnings per share) of ($0.05), which surpassed analysts’ consensus estimates by $0.04; analysts had predicted an EPS of ($0.09). The company also revealed a negative return on equity of 8.81% and a negative net margin of 24.57%. Moreover, AvidXchange generated $91.15 million in revenue during the quarter, surpassing the consensus estimate of $88.98 million.
Taking into account these factors and analysts’ assessments, equities research analysts anticipate that AvidXchange will post an earnings per share of -0.34 for the current year.
Overall, while one analyst has given a sell rating to AvidXchange stock, the majority view it with either a hold or buy rating. Investors and potential investors are keeping a close watch on the stock as its 1-year target price suggests possible growth ahead. With recent positive earnings results and hedge funds actively involved in trading AvidXchange shares, market participants eagerly await future developments in this company’s financial performance.
AvidXchange Holdings, Inc.
AVDX
Buy
Updated on: 05/12/2023
Financial Health
Healthy
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Neutral
Insider Selling and Market Projections: A Closer Look at AvidXchange’s Future Performance
In a series of recent reports, various research firms have shed light on the potential future of AvidXchange (AVDX), a leading software company specializing in automated financial processes. KeyCorp led the way, increasing their price target for AvidXchange from $12.00 to $15.00 in a research note released on June 12th, 2023. Susquehanna also entered the discussion, providing coverage on AvidXchange in a research note published on July 18th. They expressed optimism with a “positive” rating and set a price target of $15.50 for the company.
Barclays weighed in as well, raising their price target for AvidXchange from $11.00 to $13.00 in a research note released on June 5th. Following this trend, Piper Sandler found reason for increased enthusiasm and upped their price objective on AvidXchange from $14.00 to $15.00 while concurrently awarding the company an “overweight” rating in their report dated July 31st. Lastly, Deutsche Bank Aktiengesellschaft followed suit by elevating their price objective on AvidXchange from $13.00 to $15.00 according to their report issued on June 2nd.
These collective insights present an intriguing picture of both market sentiment and future growth prospects for AvidXchange. With multiple firms projecting higher price targets and delivering optimistic ratings, it appears that industry analysts hold great expectations for the company’s future performance.
Choosing Mr. Michael Praeger as its CEO was undoubtedly a wise decision for AvidXchange, given his ability to navigate the intricate waters of finance and technology seamlessly. However, it is worth noting that recently Mr. Praeger sold 59,562 shares of the company’s stock in a transaction that took place on August 17th, 2023 – an action that has left some investors perplexed.
The shares were sold at an average price of $10.04, resulting in a total transaction value of $598,002.48. As a result of this sale, Mr. Praeger’s direct ownership in the company now stands at 9,917,588 shares, estimated to be valued at around $99,572,583.52 – an impressive holding to say the least.
In another remarkable move within AvidXchange’s executive ranks, insider Mr. Joel Wilhite sold 12,880 shares of the company’s stock on August 15th for an average price of $10.09 per share. This translated into a total value of $129,959.20 – yet another decision that has raised eyebrows among market observers.
Mr. Wilhite now directly owns 359,022 shares of AvidXchange stock with an approximate value of $3,622,531.98 – underscoring his continued involvement and interest in the company’s operations and future endeavors.
It is also worth mentioning that CEO Michael Praeger engaged in a similar transaction as mentioned earlier on August 17th when he sold 59,562 shares of the company’s stock at an average price of $10.04 per share. As a result of this divestment action, Mr. Praeger now holds 9,917,588 shares directly in the company which are valued at approximately $99,572,583.52.
All these transactions have been publicly reported and disclosed through legal filings with regulatory bodies such as the Securities & Exchange Commission (SEC) and can be accessed via their respective websites.
Recent months have witnessed substantial insider selling activity within AvidXchange as it has come to light that over the last ninety days alone insiders have disposed of a staggering 130,272 shares of company stock – representing a cumulative market value equivalent to $1,330,576. This indicates that company insiders now own 10.30% of AvidXchange’s stock, a notable figure to remain aware of moving forward.
As the future unfolds and AvidXchange continues to make strides in its automated financial processes, industry observers will be keen to see how the market responds to these recent reports, price target adjustments, and insider selling patterns. Will the promising projections by research firms culminate in increased value for investors or will other factors come into play? Only time will tell.
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