Joel Wilhite, the Chief Financial Officer and Senior Vice President of AvidXchange Holdings, Inc. (NASDAQ:AVDX), recently reported selling shares of the company's common stock. According to the SEC filing, Wilhite sold a total of 18,439 shares on November 15, 2024, at an average price of $10.4275 per share, amounting to approximately $192,272.
The sales were executed in multiple transactions, with prices ranging from $10.27 to $10.57 per share. These transactions were conducted to cover tax withholding obligations related to the vesting of restricted stock units.
Following these sales, Wilhite maintains direct ownership of 405,815 shares of AvidXchange common stock.
In other recent news, AvidXChange Holdings reported a robust Q3 performance, with a 14% year-over-year revenue increase to $113 million and improved gross margins to 74.5%. The company also launched a $100 million share repurchase program and revised its 2024 business outlook upward. BMO Capital Markets, Piper Sandler, and JPMorgan all maintained a neutral rating on AvidXChange, with a revised price target reflecting the company's strong performance. Strategic partnerships and market expansion, especially in the healthcare sector and with regional banks, are driving the company's growth. AvidXChange's 2024 revenue forecast is between $437 million and $439 million, with an adjusted EBITDA projection of $78 million to $79 million. Despite potential challenges from political uncertainty and interest rate changes, the company targets 50% to 55% growth for 2025. These are among the recent developments at AvidXChange, providing investors with a snapshot of the company's recent financial performance and future expectations.
InvestingPro Insights
As Joel Wilhite, CFO of AvidXchange Holdings, Inc. (NASDAQ:AVDX), sells shares to cover tax obligations, investors might be interested in the company's current financial position and market performance. According to InvestingPro data, AvidXchange has a market capitalization of $2.17 billion, reflecting its position in the fintech sector.
The company's revenue growth is noteworthy, with a 17.84% increase in the last twelve months as of Q3 2023, reaching $427.57 million. This growth trajectory aligns with an InvestingPro Tip suggesting that net income is expected to grow this year. Additionally, analysts predict the company will be profitable this year, which could be a positive sign for investors considering the recent insider transaction.
However, it's important to note that AvidXchange is currently not profitable over the last twelve months, with an operating income margin of -2.09%. This context adds significance to the CFO's stock sale, as it may be part of a broader compensation package in a growth-focused company.
The stock has shown strong performance recently, with InvestingPro data indicating a 22.96% return over the last month and a 28.03% return over the last three months. These figures correspond with another InvestingPro Tip highlighting the stock's strong recent returns. However, investors should be cautious as an additional tip suggests the stock's RSI indicates it may be in overbought territory.
For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for AvidXchange, providing a deeper understanding of the company's financial health and market position.
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