What is AvidXchange Holdings Inc. (AVDX) Stock Return on Shareholders’ Capital?

AvidXchange Holdings Inc. (NASDAQ: AVDX) stock jumped 0.18% on Tuesday to $10.99 against a previous-day closing price of $10.97. With 0.72 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.45 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $11.13 whereas the lowest price it dropped to was $10.85. The 52-week range on AVDX shows that it touched its highest point at $12.93 and its lowest point at $5.86 during that stretch. It currently has a 1-year price target of $11.25.

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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 4.87%, but this was up by 18.68% over a month. Three-month performance surged to 32.09% while six-month performance rose 66.77%. The stock gained 9.35% in the past year, while it has gained 10.56% so far this year. A look at the trailing 12-month EPS for AVDX yields -0.85 with Next year EPS estimates of -0.32. For the next quarter, that number is -0.09. This implies an EPS growth rate of -210.30% for this year and -10.30% for next year.

Float and Shares Shorts:

At present, 198.23 million AVDX shares are outstanding with a float of 179.01 million shares on hand for trading. On Oct 13, 2022, short shares totaled 5.8 million, which was 2.93% higher than short shares on Sep 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.

Institutional Ownership:

Through their ownership of 69.40% of AVDX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.09% of AVDX, in contrast to 25.52% held by mutual funds. Shares owned by individuals account for 18.66%. As the largest shareholder in AVDX with 6.52% of the stake, The Vanguard Group, Inc. holds 12,944,795 shares worth 12,944,795. A second-largest stockholder of AVDX, The Caisse de dépôt et placement, holds 11,578,968 shares, controlling over 5.83% of the firm’s shares. Biltmore Family Office LLC is the third largest shareholder in AVDX, holding 8,418,858 shares or 4.24% stake. With a 5.83% 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 Canada Pension Plan, which owns about 2.30% of AVDX stock, is the second-largest Mutual Fund holder. It holds 4,565,000 shares valued at 45.38 million. American Funds New Economy Fund holds 1.98% of the stake in AVDX, owning 3,943,000 shares worth 39.19 million.

Analysts Ratings:

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, 2 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 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 $14.00 and a low target of $8.00, the average target price over the next 12 months is $11.42. Based on these targets, AVDX could surge 27.39% to reach the target high and fall by -27.21% to reach the target low. Reaching the average price target will result in a growth of 3.91% 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 03/04/2024. Analysts have provided yearly estimates in a range of -$0.25 being high and -$0.35 being low. For AVDX, this leads to a yearly average estimate of -$0.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. AvidXchange Holdings Inc. surprised analysts by $0.05 when it reported -$0.06 EPS against a consensus estimate of -$0.11. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is -$0.05 and the low estimate is -$0.13. The average estimate for the next quarter is thus -$0.09.

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