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

Shares of AvidXchange Holdings, Inc. (NASDAQ:AVDX) gapped down before the market opened on Wednesday following a weaker than expected 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.

The company reported $0.03 earnings per share 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%.

Wall Street Analyst Weigh In

AVDX has been the topic of a number of research reports. BTIG Research assumed coverage on shares of AvidXchange in a report on Wednesday, December 11th. They issued a “buy” rating and a $14.00 price target on the stock. UBS Group upped their price target on AvidXchange from $10.00 to $10.50 and gave the company a “neutral” rating in a research report on Thursday, November 7th. Keefe, Bruyette & Woods cut their price target on AvidXchange from $12.00 to $11.00 and set a “market perform” rating for the company in a research note on Monday, January 6th. KeyCorp boosted their price objective on AvidXchange from $12.00 to $13.00 and gave the company an “overweight” rating in a research note on Thursday, December 5th. Finally, The Goldman Sachs Group increased their target price on shares of AvidXchange from $9.00 to $10.00 and gave the stock a “sell” rating in a research report on Monday, December 2nd. Two analysts have rated the stock with a sell rating, six have assigned a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, AvidXchange has a consensus rating of “Hold” and a consensus target price of $11.61.

Insider Transactions at AvidXchange

In other AvidXchange news, Director Teresa Mackintosh sold 13,316 shares of the company’s stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $11.44, for a total value of $152,335.04. Following the transaction, the director now directly owns 47,388 shares in the company, valued at $542,118.72. This represents a 21.94 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director James E. Hausman sold 25,000 shares of AvidXchange stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $11.25, for a total value of $281,250.00. Following the sale, the director now owns 2,112,232 shares of the company’s stock, valued at approximately $23,762,610. This trade represents a 1.17 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 80,693 shares of company stock valued at $916,683. 10.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

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

AvidXchange Stock Performance

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 stock has a market cap of $1.49 billion, a P/E ratio of 461.00 and a beta of 1.22. The company has a 50 day simple moving average of $10.16 and a 200-day simple moving average of $9.42.

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.