On July 27, 2023, it was announced that Virtu Financial LLC had acquired a new stake in AvidXchange Holdings, Inc. (NASDAQ: AVDX), according to their recent disclosure with the SEC. The firm purchased 30,217 shares of the company’s stock, amounting to approximately $236,000.
AvidXchange Holdings, Inc. is a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers a SaaS-based AP automation software that streamlines and digitizes the entire invoice processing workflow for buyers. This includes capturing invoices, facilitating review and approval processes, and managing payments efficiently. Additionally, AvidXchange provides the AvidPay network, which enables seamless two-sided payments between buyers and suppliers. They also offer Cashflow Manager to provide cash management solutions.
Several analysts have recently issued reports on AVDX shares. Credit Suisse Group raised their price target on June 2nd from $11.00 to $12.50 in a research report. JPMorgan Chase & Co. also increased their price target from $11.00 to $13.00 in a research report on June 6th. KeyCorp raised their price target even further from $12.00 to $15.00 in a research report on June 12th. However, Robert W. Baird decreased their target price from $14.00 to $12.00 in a research report published on May 4th.
In another development, Susquehanna initiated coverage on AvidXchange on July 18th with a “positive” rating and set a $15.50 target price for the company’s stock.
These various reports highlight the optimism surrounding AvidXchange Holdings as an investment opportunity within the market sector it operates in – AP automation software and payment solutions.
Ultimately, the consensus among analysts shows that the stock carries a “Moderate Buy” rating with an average target price of $12.64 according to data from Bloomberg.
The recent acquisition of a stake in AvidXchange Holdings by Virtu Financial LLC further emphasizes the perceived value and potential of the company. This move signifies confidence in AvidXchange’s ability to grow and succeed in the competitive market, as well as aligning with Virtu Financial’s investment strategy.
As we move forward, it will be interesting to observe how AvidXchange Holdings capitalizes on this support and drives further innovation in AP automation software and payment solutions. Investors will undoubtedly be monitoring its progress closely, eager to see if it can continue delivering promising results for both buyers and suppliers within the middle market business segment in North America.
AvidXchange Holdings, Inc.
AVDX
Buy
Updated on: 03/12/2023
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
AvidXchange Holdings, Inc. Sees Increased Interest from Institutional Investors
AvidXchange Holdings, Inc., a leading provider of accounts payable automation software and payment solutions for middle market businesses, has seen notable activity from institutional investors in recent months. Several investment firms have either increased or decreased their stakes in the company’s stock.
Credit Suisse AG, for instance, grew its holdings in AvidXchange by 4.4% during the fourth quarter of last year. The firm now owns 34,188 shares of the company’s stock valued at $340,000 after purchasing an additional 1,428 shares in the last quarter. Similarly, Envestnet Asset Management Inc. increased its holdings by 11.7% during the same period, acquiring an additional 1,512 shares valued at $144,000.
The Manufacturers Life Insurance Company and ProShare Advisors LLC also expanded their holdings by acquiring additional shares of AvidXchange stock in the fourth quarter. The Manufacturers Life Insurance Company now owns 59,916 shares worth $596,000 after purchasing an additional 1,642 shares. ProShare Advisors LLC saw a growth of 16.7%, adding another 2,703 shares to its portfolio with a value of $188,000.
Additionally, JPMorgan Chase & Co. increased its stake in AvidXchange by 14.0% during the first quarter of this year. The firm now holds 24,188 shares valued at $195,000 after acquiring an additional 2,979 shares.
These moves indicate strong interest from institutional investors in AvidXchange and demonstrate confidence in the company’s potential for growth and profitability.
In other news related to AvidXchange Holdings Inc., Director Matthew C. Harris recently sold a significant number of company shares on May 4th. Harris sold a total of 2,839,394 shares at an average price per share of $7.86 for a total transaction value exceeding $22 million. Following this sale, the director now directly owns 15,139,898 shares in the company, valued at $118,999,598.28.
CEO Michael Praeger also sold 24,835 shares of AvidXchange stock on May 15th. The shares were sold at an average price of $8.82 for a total transaction value of $219,044.70. Following this sale, the chief executive officer now holds 9,947,842 shares worth $87,739,966.44.
Insiders have collectively sold 3,951,768 shares of AvidXchange stock in the past three months alone, amounting to approximately $32.6 million in value. It is worth noting that corporate insiders currently own 10.30% of the company’s stock.
AvidXchange Holdings Inc.’s core business revolves around providing accounts payable automation software and payment solutions for middle market businesses and their suppliers in North America. Their offerings include AP automation software (a SaaS-based solution), the AvidPay network facilitating payments between buyers and suppliers, and Cashflow manager providing cash management solutions.
On the stock market front, AvidXchange (NASDAQ:AVDX) opened at $12.17 on July 27th with a market capitalization of $2.45 billion and a price-to-earnings ratio of -25.89. The company’s beta is reported as 0.49 while its debt-to-equity ratio stands at 0.21.
The company’s financial performance has been promising thus far with its last reported earnings results beating analysts’ consensus estimates. On May 3rd, AvidXchange posted earnings per share (EPS) of ($0.06), surpassing analysts’ expectations by $0.05.
With a negative net margin of 27.75% and a negative return on equity of 10.22%, AvidXchange generated revenue of $86.82 million during the quarter, slightly exceeding analysts’ projected revenue of $82.66 million. Research analysts anticipate that the company will report earnings per share of -0.37 for the current fiscal year.
As AvidXchange continues to thrive in the accounts payable automation market, it will be interesting to observe how its institutional investors and ongoing financial performance contribute to its future success.
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