AvidXchange Holdings Inc. (NASDAQ: AVDX) stock jumped 8.84% on Friday to $7.88 against a previous-day closing price of $7.24. With 2.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.33 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $7.99 whereas the lowest price it dropped to was $7.33. The 52-week range on AVDX shows that it touched its highest point at $27.43 and its lowest point at $5.86 during that stretch. It currently has a 1-year price target of $10.68.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AVDX was up-trending over the past week, with a rise of 13.54%, but this was up by 14.53% over a month. Three-month performance dropped to -2.84% while six-month performance fell -30.08%. A look at the trailing 12-month EPS for AVDX yields -0.93 with Next year EPS estimates of -0.43. For the next quarter, that number is -0.13. This implies an EPS growth rate of -210.30% for this year and 0.00% for next year.
Float and Shares Shorts:
At present, 197.02 million AVDX shares are outstanding with a float of 178.15 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.05 million, which was 4.07% higher than short shares on Jun 14, 2022. In addition to Mr. Michael Praeger as the firm’s Co-Founder, Chairman, Pres & CEO, Mr. Joel Wilhite serves as its Sr. VP & CFO.
Through their ownership of 61.94% of AVDX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 26.37% of AVDX, in contrast to 20.02% held by mutual funds. Shares owned by individuals account for 18.71%. As the largest shareholder in AVDX with 7.00% of the stake, Capital Research & Management Co holds 13,838,867 shares worth 13,838,867. A second-largest stockholder of AVDX, The Caisse de dépôt et placement, holds 11,578,968 shares, controlling over 5.85% of the firm’s shares. Temasek Holdings Pte Ltd. is the third largest shareholder in AVDX, holding 11,463,172 shares or 5.80% stake. With a 5.86% stake in AVDX, the Caisse de Dépôt & Placement du Qu is the largest stakeholder. A total of 11,580,694 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 3.99% of AVDX stock, is the second-largest Mutual Fund holder. It holds 7,896,642 shares valued at 48.49 million. Canada Pension Plan holds 2.31% of the stake in AVDX, owning 4,565,000 shares worth 28.03 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AVDX since 12 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AVDX analysts setting a high price target of $13.00 and a low target of $8.00, the average target price over the next 12 months is $10.71. Based on these targets, AVDX could surge 64.97% to reach the target high and rise by 1.52% to reach the target low. Reaching the average price target will result in a growth of 35.91% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AVDX will report FY 2022 earnings on 03/06/2023. Analysts have provided yearly estimates in a range of -$0.33 being high and -$0.55 being low. For AVDX, this leads to a yearly average estimate of -$0.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. AvidXchange Holdings Inc. reported -$0.07 EPS against a consensus estimate of -$0.07. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.15. The average estimate for the next quarter is thus -$0.12.