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

AvidXchange Holdings, Inc. (NASDAQ:AVDX) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. 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 changing hands.

The company reported $0.03 earnings per share (EPS) 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%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on AVDX shares. BMO Capital Markets boosted their target price on AvidXchange from $10.00 to $11.00 and gave the stock a “market perform” rating in a research report on Friday, November 8th. The Goldman Sachs Group boosted their price objective on AvidXchange from $9.00 to $10.00 and gave the stock a “sell” rating in a report on Monday, December 2nd. Barclays raised their target price on shares of AvidXchange from $11.00 to $13.00 and gave the company an “overweight” rating in a research note on Monday, November 18th. Piper Sandler increased their price objective on shares of AvidXchange from $9.00 to $10.00 and gave the company a “neutral” rating in a report on Thursday, November 7th. Finally, UBS Group lifted their target price on shares of AvidXchange from $10.00 to $10.50 and gave the stock a “neutral” rating in a report on Thursday, November 7th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $11.61.

Insiders Place Their Bets

In related news, CEO Michael Praeger sold 42,377 shares of the firm’s stock in a transaction 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 in the company, valued at $118,343,776.20. This trade represents a 0.41 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Teresa Mackintosh sold 13,316 shares of the company’s stock in a transaction 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 completion of the transaction, the director now directly owns 47,388 shares of the company’s stock, 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. Over the last ninety days, insiders have sold 80,693 shares of company stock worth $916,683. Corporate insiders own 10.40% of the company’s stock.

Institutional Trading of AvidXchange

Several hedge funds and other institutional investors have recently modified their holdings of AVDX. Vanguard Group Inc. raised its position in AvidXchange by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 18,110,051 shares of the company’s stock valued at $187,258,000 after buying an additional 116,410 shares during the last quarter. FMR LLC grew its stake in shares of 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 raised its holdings in shares of AvidXchange by 2.5% in the fourth quarter. North Reef Capital Management LP now owns 7,994,000 shares of the company’s stock valued at $82,658,000 after purchasing an additional 194,000 shares during the last quarter. Azora Capital LP acquired a new position in AvidXchange during the fourth quarter worth $45,067,000. Finally, Geode Capital Management LLC grew its position in AvidXchange by 5.0% in the third quarter. Geode Capital Management LLC now owns 4,266,265 shares of the company’s stock valued at $34,607,000 after purchasing an additional 201,847 shares in the last quarter. Institutional investors and hedge funds own 80.58% of the company’s stock.

AvidXchange Stock Down 17.9 %

The firm’s 50 day simple moving average is $10.23 and its 200-day simple moving average is $9.44. 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 stock has a market capitalization of $1.55 billion, a price-to-earnings ratio of 461.00 and a beta of 1.22.

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.