Michael Praeger, the Chief Executive Officer of AvidXchange Holdings, Inc. (NASDAQ:AVDX), has recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Praeger sold 42,377 shares of common stock at an average price of $11.4047 per share on December 2, 2024. The total value of the transaction amounted to approximately $483,296. The sale comes as AvidXchange, currently valued at $2.33 billion, trades near $11.46, showing strong momentum with impressive returns over the past three months. InvestingPro analysis indicates the stock is currently fairly valued.
Following this sale, Praeger retains direct ownership of 10,381,033 shares. Additionally, he holds indirect ownership through various trusts and joint accounts, including 213,468 shares by MP Charitable Trust and 586,768 shares by Cindy Praeger, among others. The sale was conducted under a pre-established Rule 10b5-1 trading plan, which was adopted by Praeger on August 27, 2024. With revenue growth of 17.84% and analysts expecting profitability this year, investors can access detailed analysis and 6 additional key insights through InvestingPro's comprehensive research report.
In other recent news, AvidXChange Holdings reported a substantial 14% year-over-year revenue increase to $113 million in the third quarter, surpassing expectations. The company's gross margins also improved to 74.5%. BMO (TSX:BMO) Capital Markets, Piper Sandler, and JPMorgan (NYSE:JPM) have all retained a Neutral rating on AvidXChange, with BMO Capital Markets increasing its price target to $11, and both Piper Sandler and JPMorgan raising theirs to $10. These adjustments follow the company's strong Q3 performance, which demonstrated signs of business stabilization and operational efficiency.
AvidXChange also initiated a $100 million share repurchase program. The company has been expanding its market presence through strategic partnerships, notably in the healthcare sector and with regional banks. 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 recent developments provide insight into AvidXChange's financial performance and future expectations.
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