AvidXchange (NASDAQ:AVDX) Shares Gap Down on Disappointing Earnings

Shares of AvidXchange Holdings, Inc. (NASDAQ:AVDX) gapped down before the market opened 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 trading hands.

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%.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on AVDX shares. Compass Point upgraded shares of AvidXchange from a “neutral” rating to a “buy” rating and boosted their target price for the company from $8.00 to $15.00 in a report on Thursday, November 7th. BTIG Research started coverage on shares of AvidXchange in a research report on Wednesday, December 11th. They set a “buy” rating and a $14.00 price target for the company. Piper Sandler upped their price objective on shares of AvidXchange from $9.00 to $10.00 and gave the stock a “neutral” rating in a report on Thursday, November 7th. KeyCorp raised their target price on shares of AvidXchange from $12.00 to $13.00 and gave the company an “overweight” rating in a research note on Thursday, December 5th. Finally, Barclays boosted their price target on AvidXchange from $11.00 to $13.00 and gave the stock an “overweight” rating in a research report on Monday, November 18th. Two analysts have rated the stock with a sell rating, six have given a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $11.61.

Insider Transactions at AvidXchange

In other news, Director Teresa Mackintosh sold 13,316 shares of the business’s stock in a transaction that occurred on Friday, December 6th. The shares were 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 $542,118.72. The trade was a 21.94 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director James E. Hausman sold 25,000 shares of the stock in a transaction that occurred on Monday, December 9th. The shares were sold at an average price of $11.25, for a total transaction of $281,250.00. Following the transaction, the director now owns 2,112,232 shares in the company, 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. Insiders sold 80,693 shares of company stock worth $916,683 over the last quarter. 10.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On AvidXchange

A number of hedge funds have recently added to or reduced their stakes in AVDX. Vanguard Group Inc. boosted its stake in shares of AvidXchange by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 18,110,051 shares of the company’s stock worth $187,258,000 after buying an additional 116,410 shares during the last quarter. FMR LLC lifted its holdings in AvidXchange by 8.4% in the fourth quarter. FMR LLC now owns 14,889,282 shares of the company’s stock valued at $153,955,000 after acquiring an additional 1,155,513 shares during the period. North Reef Capital Management LP boosted its position in AvidXchange by 2.5% in the fourth quarter. North Reef Capital Management LP now owns 7,994,000 shares of the company’s stock worth $82,658,000 after purchasing an additional 194,000 shares during the last quarter. Azora Capital LP bought a new stake in shares of AvidXchange during the 4th quarter valued at about $45,067,000. Finally, Geode Capital Management LLC increased its position in shares of AvidXchange by 5.0% during the 3rd 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 during the last quarter. 80.58% of the stock is currently owned by hedge funds and other institutional investors.

AvidXchange Stock Down 20.7 %

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 cap of $1.49 billion, a P/E ratio of 461.00 and a beta of 1.22. The company’s 50 day moving average price is $10.16 and its two-hundred day moving average price is $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.