Michael Praeger, the CEO of AvidXchange Holdings, Inc. (NASDAQ:AVDX), a leading provider of accounts payable and payment automation solutions for small and midsize businesses, has recently sold a significant portion of his company stock, according to the latest SEC filings. The transactions, which took place on May 15 and 16, 2024, involved the sale of company shares for a total value exceeding $400,000.
The SEC Form 4 report indicates that Praeger disposed of 5,641 shares at a weighted average price of $11.2363 on May 15, and an additional 10,315 shares at the same price. On the following day, the CEO continued to sell shares, offloading 2,508 shares at a weighted average price of $11.207, and 4,585 shares and 4,206 shares at the same price. These transactions were executed in multiple trades within the price ranges of $11.12 to $11.38 and $11.12 to $11.27, respectively.
The sales are reported to cover tax withholding obligations related to the vesting and settlement of restricted stock units. These "sell to cover" transactions are a common practice for executives to satisfy tax liabilities incurred when restricted stock units vest.
While Praeger sold shares, there were also acquisitions of AvidXchange stock through the vesting of restricted stock units, which convert into common stock on a one-for-one basis. However, these acquisitions did not involve any monetary transactions, as they pertain to previously granted restricted stock units vesting.
Investors often keep a close eye on insider transactions as they may provide insights into executives' perspectives on the company's current valuation and future prospects. It's worth noting that despite the recent sales, Praeger still maintains a substantial stake in AvidXchange Holdings, Inc., indicating continued alignment with the company's long-term success.
For those interested in tracking the stock performance and insider transactions of AvidXchange Holdings, Inc., the shares are traded on the NASDAQ under the ticker symbol AVDX.
InvestingPro Insights
In light of the recent insider transactions by AvidXchange Holdings, Inc.'s CEO, Michael Praeger, investors may find additional context in the company's financial health and future outlook through InvestingPro's real-time data and insights. According to InvestingPro Data, AvidXchange has a market capitalization of $2.33 billion and has shown promising revenue growth in the last twelve months as of Q1 2024, with a 20.34% increase. The company's gross profit margin stands robust at 69.42%, reflecting strong operational efficiency.
However, the company's P/E ratio is currently negative at -70.47, which is an indicator that the company has been operating at a loss. This aligns with the InvestingPro Tip indicating that AvidXchange has not been profitable over the last twelve months. Yet, analysts predict a turnaround with expectations of net income growth this year, which could signify an upcoming shift in the company's profitability trajectory.
Additionally, three analysts have revised their earnings estimates upwards for the upcoming period, suggesting a positive sentiment about the company's financial performance. This could be a signal to investors of potential future value, despite the CEO's recent stock sales to cover tax obligations. It's important to note that AvidXchange does not pay a dividend, which may influence investment decisions for those seeking income-generating stocks.
For investors seeking further insights and guidance, there are additional InvestingPro Tips available that can provide deeper analysis into AvidXchange's financials and market position. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock access to these valuable tips that can help inform your investment strategy.
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