AvidXchange (NASDAQ:AVDX) Hits New 52-Week Low Following Weak Earnings

AvidXchange Holdings, Inc. (NASDAQ:AVDX) hit a new 52-week low on Thursday following a weaker than expected earnings announcement. The stock traded as low as $6.89 and last traded at $7.33, with a volume of 210346 shares. The stock had previously closed at $7.26.

The company reported $0.03 earnings per share for the quarter, missing analysts’ consensus estimates of $0.06 by ($0.03). The business had revenue of $115.44 million during the quarter, compared to analyst estimates of $114.98 million. AvidXchange had a negative net margin of 0.23% and a positive return on equity of 0.74%.

Analyst Upgrades and Downgrades

AVDX has been the topic of several recent research reports. Barclays raised their price target on AvidXchange from $11.00 to $13.00 and gave the company an “overweight” rating in a report on Monday, November 18th. BTIG Research began coverage on AvidXchange in a report on Wednesday, December 11th. They set a “buy” rating and a $14.00 target price on the stock. The Goldman Sachs Group raised their target price on AvidXchange from $9.00 to $10.00 and gave the stock a “sell” rating in a report on Monday, December 2nd. Compass Point upgraded AvidXchange from a “neutral” rating to a “buy” rating and raised their target price for the stock from $8.00 to $15.00 in a report on Thursday, November 7th. Finally, Piper Sandler raised their target price on AvidXchange from $9.00 to $10.00 and gave the stock a “neutral” rating in a report on Thursday, November 7th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, AvidXchange presently has a consensus rating of “Hold” and a consensus price target of $11.03.

Insiders Place Their Bets

In related news, CEO Michael Praeger sold 42,377 shares of the company’s stock in a transaction that occurred on Monday, December 2nd. The shares were 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Teresa Mackintosh sold 13,316 shares of the company’s stock in a transaction that occurred on Friday, December 6th. The stock was sold at an average price of $11.44, for a total transaction of $152,335.04. Following the transaction, the director now owns 47,388 shares of the company’s stock, valued at approximately $542,118.72. This represents a 21.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 80,693 shares of company stock worth $916,683 in the last quarter. 10.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On AvidXchange

Institutional investors have recently added to or reduced their stakes in the business. Blue Trust Inc. boosted its stake in shares of AvidXchange by 90.1% in the 4th quarter. Blue Trust Inc. now owns 2,697 shares of the company’s stock valued at $28,000 after purchasing an additional 1,278 shares during the last quarter. Point72 DIFC Ltd bought a new position in AvidXchange during the third quarter worth $37,000. Allspring Global Investments Holdings LLC bought a new position in AvidXchange during the third quarter worth $38,000. R Squared Ltd bought a new position in AvidXchange during the fourth quarter worth $41,000. Finally, Quarry LP boosted its stake in AvidXchange by 126.6% during the fourth quarter. Quarry LP now owns 5,518 shares of the company’s stock worth $57,000 after acquiring an additional 3,083 shares in the last quarter. 80.58% of the stock is owned by institutional investors.

AvidXchange Stock Performance

The firm has a market capitalization of $1.51 billion, a P/E ratio of 461.00 and a beta of 1.22. The company’s 50 day moving average is $10.16 and its 200-day moving average is $9.42. The company has a quick ratio of 1.32, a current ratio of 1.32 and a debt-to-equity ratio of 0.11.

About AvidXchange

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.