AvidXchange (NASDAQ:AVDX) Shares Gap Down After Earnings Miss

AvidXchange Holdings, Inc. (NASDAQ:AVDX) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.15, but opened at $7.07. AvidXchange shares last traded at $7.48, with a volume of 779,521 shares.

The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.03). AvidXchange had a positive return on equity of 0.74% and a negative net margin of 0.23%.

Analyst Ratings Changes

AVDX has been the topic of a number of recent analyst reports. UBS Group lifted their price objective on AvidXchange from $10.00 to $10.50 and gave the stock a “neutral” rating in a research note on Thursday, November 7th. Compass Point raised AvidXchange from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $8.00 to $15.00 in a research report on Thursday, November 7th. BMO Capital Markets increased their price objective on AvidXchange from $10.00 to $11.00 and gave the company a “market perform” rating in a research report on Friday, November 8th. KeyCorp boosted their target price on shares of AvidXchange from $12.00 to $13.00 and gave the stock an “overweight” rating in a research report on Thursday, December 5th. Finally, Barclays increased their price target on shares of AvidXchange from $11.00 to $13.00 and gave the company an “overweight” rating in a report on Monday, November 18th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $11.61.

Insider Buying and Selling

In other AvidXchange news, CEO Michael Praeger sold 42,377 shares of the stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $11.40, for a total transaction of $483,097.80. Following the completion of the transaction, the chief executive officer now directly owns 10,381,033 shares in the company, valued at $118,343,776.20. This represents a 0.41 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director James E. Hausman sold 25,000 shares of AvidXchange stock in a transaction on Monday, December 9th. The shares were sold at an average price of $11.25, for a total value of $281,250.00. Following the transaction, the director now directly owns 2,112,232 shares of the company’s stock, valued at approximately $23,762,610. The trade was a 1.17 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 80,693 shares of company stock valued at $916,683 over the last quarter. Corporate insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On AvidXchange

A number of hedge funds have recently made changes to their positions in AVDX. US Bancorp DE grew its stake in AvidXchange by 111,114.9% during the third quarter. US Bancorp DE now owns 52,271 shares of the company’s stock worth $424,000 after buying an additional 52,224 shares during the last quarter. Jacobs Levy Equity Management Inc. acquired a new position in shares of AvidXchange in the 3rd quarter worth approximately $25,339,000. Entropy Technologies LP bought a new stake in AvidXchange during the 3rd quarter worth approximately $447,000. State of New Jersey Common Pension Fund D increased its holdings in AvidXchange by 39.3% during the 3rd quarter. State of New Jersey Common Pension Fund D now owns 247,947 shares of the company’s stock valued at $2,011,000 after purchasing an additional 69,971 shares in the last quarter. Finally, Barclays PLC raised its position in AvidXchange by 239.8% in the 3rd quarter. Barclays PLC now owns 285,768 shares of the company’s stock valued at $2,318,000 after purchasing an additional 201,679 shares during the last quarter. Institutional investors and hedge funds own 80.58% of the company’s stock.

AvidXchange Trading Down 17.9 %

The business has a 50 day simple moving average of $10.23 and a 200 day simple moving average of $9.44. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.32 and a quick ratio of 1.32. The company has a market cap of $1.55 billion, a price-to-earnings ratio of 461.00 and a beta of 1.22.

AvidXchange Company Profile

AvidXchange Holdings, Inc provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature.