Avalara Inc. (NYSE: AVLR) Is Getting Increasingly Hard To Ignore


    Janus Capital Management LLC recently announced the acquisition of new stake in Avalara Inc. (NYSE:AVLR). The institutional investor has increased its shareholding in the Technology company by 18.24% to 6.39 million shares with purchase of 0.99 million shares. This fresh investment now brings its stake to 8.15% valued currently at $850.97 million. In addition, The Vanguard Group, Inc. raised its holdings by 0.16 million to 5.79 million shares. And T. Rowe Price Associates, Inc. (I. has lifted its position by 229.18% or 3.24 million shares – to 4.66 million shares.

    With over 0.53 million Avalara Inc. (AVLR) shares trading Tuesday and a closing price of $126.50 on the day, the dollar volume was approximately $66.55 million. The shares have shown a negative weekly performance of -1.62% and its price on 07/21/20 gained nearly 0.26%. Currently, there are 77.90M common shares owned by the public and among those 74.81M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for AVLR have a consensus price objective of $143.42. The analysts have set the share’s price value over the next 12 months at a high of $180.00 and a low of $110.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Avalara Inc. stock is 1.50 for the next 12 months. The average price target is 13.09% above its last price level and an upside to the estimated low will see the stock lose -15.0% over that period. But an upside of 29.72% will see the stock hit the forecast high price target while mean target price for the stock is $144.50.

    Insiders at the company have transacted a total of 242 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 89 of these insider trades were purchases, accounting for 1,462,823 shares. Insider sales of the common stock occurred on 153 occasions, with total insider shares sold totaling 3,953,917 shares.

    The top 3 mutual fund holders in Avalara Inc. are T Rowe Price New Horizons Fund, Vanguard Total Stock Market Index, and Janus Henderson Forty Fund. T Rowe Price New Horizons Fund owns 2.32 million shares of the company’s stock, all valued at over $308.5 million. The company bought an additional 0.5 million shares recently to bring their total holdings to about 2.96% of the shares outstanding. Vanguard Total Stock Market Index bought 0.24 million shares to see its total holdings expand to 2.12 million shares valued at over $282.74 million and representing 2.71% of the shares outstanding. Janus Henderson Forty Fund bought 0.19 million shares to bring its total holdings to over 1.93 million shares at a value of $257.52 million. Janus Henderson Forty Fund now owns shares totaling to 2.47% of the shares outstanding.

    Shares of Avalara Inc. (NYSE: AVLR) opened at $132.00, up $5.83 from a prior closing price of $126.17. However, the script later closed the day at $126.50, up 0.26%. The company’s stock has a 5-day price change of -1.62% and 54.85% over the past three months. AVLR shares are trading 72.25% year to date (YTD), with the 12-month market performance up to 52.86% higher. It has a 12-month low price of $55.50 and touched a high of $144.20 over the same period. Currently, 0.53 million shares have been traded, compared to an average intraday trading volume of 1.09 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.46%, 8.43%, and 44.22% respectively.

    Institutional ownership of Avalara Inc. (NYSE: AVLR) shares accounts for 88.40% of the company’s 77.90M shares outstanding. Mutual fund holders own 32.00%, while other institutional holders and individual stakeholders account for 54.67% and 17.37% respectively.

    It has a market capitalization of $9.81B. The earnings-per-share (ttm) stands at -$0.74. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.91% over the week and 4.81% over the month.

    Analysts forecast that Avalara Inc. (AVLR) will achieve an EPS of -$0.1 for the current quarter, -$0.04 for the next quarter and $0.01 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.13 while analysts give the company a high EPS estimate of -$0.08. Comparatively, EPS for the current quarter was -$0.03 a year ago. Earnings per share for the fiscal year are expected to increase by 39.50%, and 105.30% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Avalara Inc. (AVLR) as a “Strong Buy” at a consensus score of 1.50. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 0 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the AVLR, a number of firms have released research notes about the stock. Needham stated their Buy rating for the stock in a research note on June 24, 2020, with the firm’s price target at $116-$150. Citigroup coverage for the Avalara Inc. (AVLR) stock in a research note released on February 20, 2020 offered a Buy rating with a price target of $120. Piper Jaffray was of a view on October 29, 2019 that the stock is Overweight, while Mizuho gave the stock Buy rating on October 11, 2019, issuing a price target of $90. Raymond James on their part issued Outperform rating on September 06, 2019.


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