A Technical View of the AvidXchange Holdings Inc (AVDX)

AvidXchange Holdings Inc (NASDAQ:AVDX) saw an upside of 1.01% to $9.05 after adding $0.09 on Wednesday. The 5-day average trading volume is 1,237,854 shares of the company’s common stock. It has gained $9.58 in the past week and touched a new high 2 times within the past 5 days. An average of 1,429,218 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,985,757.

AVDX’s 1-month performance is -8.67% or -$1.13 on its low of $8.91 reached on 09/21/23. The company’s shares have touched a 52-week low of $7.02 and high of $12.75, with the stock’s rally to the 52-week high happening on 08/02/23. YTD, AVDX has lost -8.95% or -$0.88 and has reached a new high 14 times. However, the current price is down -29.02% from the 52-week high price.

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Insider Transactions

AVDX stock investors last saw insider trading activity on Aug 17.Praeger Michael (Chief Executive Officer) most recently sold 59,562 shares at $10.04 per share on Aug 17. This transaction cost the insider $598,193. Chief Executive Officer, Praeger Michael, sold 25,789 shares at a price of $10.09 on Aug 15. Then, on Aug 15, Wilhite Joel sold 12,880 shares at a price of $10.09 per share. This transaction amounted to $129,959.

Valuation Metrics

AVDX stock has a beta of 0.68. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 5.28 while the price-to-book (PB) in the most recent quarter is 2.84.

AvidXchange Holdings Inc’s quick ratio for the period ended June 29 was 1.32, with the current ratio over the same period at 1.32. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.22, while the total debt to equity was 0.23. In terms of profitability, the gross margin trailing 12 months is 55.26%. The trailing 12-month EBITDA margin is -17.24% while for the period ending June 29, AvidXchange Holdings Inc’s operating margin was -24.07%. The firm’s gross profit as reported stood at $198.49 million against revenue of $316.35 million.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -37.13% to -$18.77 million, while revenue of -$15.99 million was 14.81% off the previous quarter. Analysts expected AVDX to announce -$0.04 per share in earnings in its latest quarter, but it posted $0, representing a 100.00% surprise. EBITDA for the quarter stood at more than -$12.98 million. AVDX stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 1.44 billion, with total debt at $149.89 million. Shareholders hold equity totaling $202.15 million.

Let’s look briefly at AvidXchange Holdings Inc (AVDX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 26 September was 26.64% to suggest the stock is trending oversold, with historical volatility in this time period at 19.03%.

The stock’s 5-day moving average is $9.09, reflecting a -2.32% or -$0.22 change from its current price. AVDX is currently trading -10.60% above its 20-day SMA, +9.88% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -24.46% and SMA200 by+2.89%.

Stochastic %K and %D was 9.16% and 10.18% and the average true range (ATR) pointed at 0.33. The RSI (14) points at 30.19%, while the 14-day stochastic is at 10.83% with the period’s ATR at 0.34. The stock’s 9-day MACD Oscillator is pointing at -0.23 and -0.44 on the 14-day charts.