AvidXchange Holdings Inc. (NASDAQ: AVDX) stock fell -1.13% on Monday to $9.66 against a previous-day closing price of $9.77. With 1.16 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.13 million shares. During the session, the Software – Infrastructure company that operates in wider Technology sector, reached to the highest price of $9.81 whereas the lowest price it dropped to was $9.58. The 52-week range on AVDX shows that it touched its highest point at $12.75 and its lowest point at $7.02 during that stretch. It currently has a 1-year price target of $13.59. Beta for the stock currently stands at 0.62.
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 down-trending over the past week, with a drop of -3.50%, but this was down by -3.50% over a month. Three-month performance dropped to -9.89% while six-month performance rose 28.12%. The stock gained 11.68% in the past year, while it has lost -2.82% so far this year. A look at the trailing 12-month EPS for AVDX yields -0.43 with Next year EPS estimates of -0.00. For the next quarter, that number is -0.03. This implies an EPS growth rate of 80.60% for this year and 100.00% for next year.
Float and Shares Shorts:
At present, 201.56 million AVDX shares are outstanding with a float of 183.68 million shares on hand for trading. On Aug 30, 2023, short shares totaled 7.13 million, which was 3.52% higher than short shares on Jul 30, 2023. In addition to Mr. Michael Praeger as the firm’s Co-Founder, Chairman & CEO, Mr. Daniel Drees serves as its Pres.
Through their ownership of 66.52% of AVDX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 33.62% of AVDX, in contrast to 26.94% held by mutual funds. Shares owned by individuals account for 17.01%. As the largest shareholder in AVDX with 8.51% of the stake, The Vanguard Group, Inc. holds 17,203,622 shares worth 17,203,622. A second-largest stockholder of AVDX, Senvest Management LLC, holds 11,089,340 shares, controlling over 5.49% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in AVDX, holding 8,933,791 shares or 4.42% stake. With a 2.41% stake in AVDX, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 4,864,277 shares are owned by the mutual fund manager. The Canada Pension Plan, which owns about 2.26% of AVDX stock, is the second-largest Mutual Fund holder. It holds 4,565,000 shares valued at 46.93 million. Vanguard Small Cap Index Fund holds 1.94% of the stake in AVDX, owning 3,928,752 shares worth 40.39 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, AVDX reported revenue of $76.56M and operating income of -$21.25M. The EBITDA in the recently reported quarter was -$12.29M and diluted EPS was -$0.13.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AVDX since 0 analysts follow the stock currently. 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 $15.00 and a low target of $11.00, the average target price over the next 12 months is $13.58. Based on these targets, AVDX could surge 55.28% to reach the target high and rise by 13.87% to reach the target low. Reaching the average price target will result in a growth of 40.58% 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.
Summary of Insider Activity:
Insiders traded AVDX stock several times over the past three months with 25 Buys and 20 Sells. In these transactions, 258,366 shares were bought while 144,475 shares were sold. The number of buy transactions has increased to 93 while that of sell transactions has risen to 93 over the past year. The total number of shares bought during that period was 2,524,744 while 5,206,879 shares were sold.