Published on August 29, 2023, Avantax, Inc. (NASDAQ:AVTA) saw a significant decline in short interest during the month of August. According to reports, as of August 15th, there were a total of 833,500 shorted shares, which marks a reduction of 12.4% from the previous total of 951,700 shares on July 31st. The current percentage of the company’s shares being short sold stands at 2.4% with the current average daily trading volume at 316,800 shares, resulting in a short-interest ratio of 2.6 days.
Various analysts have recently released reports on AVTA shares. Barrington Research lowered their price objective from $32.50 to $30.00 and maintained an “outperform” rating on the stock in a report published on Thursday, August 10th. Benchmark also dropped their target price from $32.00 to $30.00 and issued a “buy” rating for Avantax in their research report on Friday, August 11th. Similarly, Cantor Fitzgerald lowered their price objective from $29.00 to $27.00 and maintained an “overweight” rating for the company in their research report published on Friday, August 11th.
As per Bloomberg.com data, four investment analysts have given the stock a buy rating while the average rating for Avantax is determined as “Buy” with an average price target of $29.00.
Several institutional investors either increased or decreased their stakes in AVTA recently as well. BlackRock Inc., for instance, purchased a new stake during the second quarter valued at approximately $140,882,000 while Van Berkom & Associates Inc acquired one worth approximately $49,1820 million over the same period. Additionally, Dimensional Fund Advisors LP invested around $36,8360 million and State Street Corp invested roughly $33,817,000 in Avantax during the second quarter. Renaissance Technologies LLC also purchased a new stake worth approximately $20,507,000. Collectively, hedge funds and other institutional investors now own about 91.63% of the company’s stock.
Avantax, Inc. delivers wealth management solutions to various entities in the United States including consumers, small business owners, tax professionals, financial professionals, and certified public accounting firms. The company provides an integrated platform consisting of technical tools for planning, compliance support, operations management, sales support as well as product support tools enabling tax-advantaged planning services along with investment and wealth management services.
To find out more about Avantax and its recent developments in the market, readers are encouraged to refer to the latest report on AVTA.
Updated on: 03/12/2023
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Analyzing the State of Avantax’s Stock: Opportunities and Risks
Avantax, a financial services company, saw its stock open at $21.00 on Tuesday, August 29, 2023. This price reflects a one year low of $17.94 and a one year high of $30.23. With a market capitalization of $771.96 million, Avantax operates within the small to mid-cap range.
Investors may be intrigued by Avantax’s low PE ratio of 2.86, which suggests that the company’s stock is undervalued compared to its earnings. This could potentially make it an attractive investment opportunity for those seeking value in the market.
However, it is important to consider Avantax’s P/E/G ratio of 3.57 as well. The P/E/G ratio takes into account the company’s growth prospects alongside its valuation and indicates whether investors are paying a fair price relative to expected future earnings growth. A higher P/E/G ratio can suggest that the company’s stock is overpriced considering its growth potential.
Another factor to consider is Avantax’s beta of 1.25, which measures the volatility in the stock relative to the overall market. A beta above 1 indicates that the stock tends to move more than the general market, while a beta below 1 suggests lower volatility.
In terms of financial health, Avantax has a debt-to-equity ratio of 0.61, indicating reasonable levels of leverage and financial stability. A quick ratio and current ratio both standing at 2.37 further exemplify this stability by demonstrating sufficient liquidity to cover short-term obligations.
Analyzing past trends, Avantax has experienced a declining trend in its stock price with a 50-day simple moving average of $23.44 and a 200-day simple moving average of $24.43 as of August 29th, 2023.
It is worth noting that while these factors provide insight into Avantax’s current position, they do not guarantee future performance. Investors should conduct thorough research and consider their own risk tolerance before making any investment decisions.
Overall, the perplexing state of Avantax’s stock may have caught some investors off guard. The company’s low PE ratio indicates potential undervaluation, but its high P/E/G ratio suggests caution. With a market capitalization in the mid-cap range and a beta of 1.25, Avantax presents both opportunities and risks to investors. As always, prudent consideration of various factors is crucial when evaluating investment options.