AvidXchange (NASDAQ:AVDX) Sets New 1-Year Low on Disappointing Earnings

AvidXchange Holdings, Inc. (NASDAQ:AVDX)’s share price hit a new 52-week low during mid-day trading 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 trading hands. The stock had previously closed at $7.26.

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

Analyst Ratings Changes

A number of research firms recently weighed in on AVDX. Morgan Stanley lowered their price target on shares of AvidXchange from $11.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Thursday. Compass Point upgraded shares of AvidXchange from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $8.00 to $15.00 in a research report on Thursday, November 7th. Keefe, Bruyette & Woods lowered their price target on shares of AvidXchange from $11.00 to $8.00 and set a “market perform” rating on the stock in a research report on Thursday. UBS Group boosted their price target on shares of AvidXchange from $10.00 to $10.50 and gave the stock a “neutral” rating in a research report on Thursday, November 7th. Finally, Wells Fargo & Company lowered their price target on shares of AvidXchange from $10.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Thursday. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $10.33.

Insider Activity

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 sale, the chief executive officer now directly owns 10,381,033 shares of the company’s stock, valued at $118,343,776.20. This represents a 0.41 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 sale, the director now directly owns 47,388 shares in the company, valued at approximately $542,118.72. The trade was a 21.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 80,693 shares of company stock valued at $916,683. Company insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On AvidXchange

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its stake in AvidXchange by 0.6% during the 4th quarter. Vanguard Group Inc. now owns 18,110,051 shares of the company’s stock worth $187,258,000 after buying an additional 116,410 shares during the period. FMR LLC grew its holdings in AvidXchange by 8.4% during the 4th quarter. FMR LLC now owns 14,889,282 shares of the company’s stock worth $153,955,000 after acquiring an additional 1,155,513 shares in the last quarter. North Reef Capital Management LP grew its holdings in AvidXchange by 2.5% during the 4th quarter. North Reef Capital Management LP now owns 7,994,000 shares of the company’s stock worth $82,658,000 after acquiring an additional 194,000 shares in the last quarter. Azora Capital LP acquired a new position in AvidXchange during the 4th quarter worth approximately $45,067,000. Finally, Geode Capital Management LLC grew its holdings in AvidXchange by 5.0% during the 3rd quarter. Geode Capital Management LLC now owns 4,266,265 shares of the company’s stock worth $34,607,000 after acquiring an additional 201,847 shares in the last quarter. 80.58% of the stock is owned by hedge funds and other institutional investors.

AvidXchange Stock Up 3.3 %

The company has a current ratio of 1.32, a quick ratio of 1.32 and a debt-to-equity ratio of 0.11. The company has a market cap of $1.56 billion, a price-to-earnings ratio of 461.00 and a beta of 1.22. The firm’s fifty day simple moving average is $10.03 and its 200 day simple moving average is $9.40.

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.