Avalara (NYSE:AVLR) Lowered to Hold at Zacks Investment Research

Avalara (NYSE:AVLR) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report issued on Tuesday, Zacks.com reports.

According to Zacks, “Avalara Inc. is a provider of cloud-based tax compliance solutions. It offers businesses of all sizes achieve compliance with transaction taxes including sales and use, VAT, excise, communications and other tax types. Avalara Inc. is based in Seattle, United States. “

A number of other brokerages have also weighed in on AVLR. Needham & Company LLC reiterated a “buy” rating and set a $42.00 target price (down from $45.00) on shares of Synaptics in a research note on Friday, May 10th. JMP Securities boosted their target price on shares of Pegasystems from $72.00 to $81.00 and gave the company a “market outperform” rating in a research note on Wednesday, May 8th. Finally, KeyCorp restated a “buy” rating and issued a $65.00 price objective on shares of Talend in a research note on Wednesday, May 8th. One research analyst has rated the stock with a hold rating and six have issued a buy rating to the company’s stock. Avalara has a consensus rating of “Buy” and an average target price of $66.14.

AVLR traded up $2.21 during mid-day trading on Tuesday, reaching $83.87. 47,660 shares of the company traded hands, compared to its average volume of 1,018,256. The firm has a market cap of $5.58 billion and a PE ratio of -77.72. The stock’s fifty day moving average is $71.81. Avalara has a 52-week low of $28.09 and a 52-week high of $83.34.

Avalara (NYSE:AVLR) last announced its earnings results on Tuesday, May 7th. The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.16) by $0.15. The business had revenue of $85.00 million during the quarter, compared to analyst estimates of $78.67 million. Avalara had a negative net margin of 23.56% and a negative return on equity of 32.45%. The firm’s quarterly revenue was up 38.4% on a year-over-year basis. As a group, sell-side analysts forecast that Avalara will post -0.55 earnings per share for the current year.

In other Avalara news, insider William Ingram sold 25,000 shares of the stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $71.29, for a total transaction of $1,782,250.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Pincus & Co. Warburg sold 4,400,000 shares of the stock in a transaction dated Monday, May 20th. The shares were sold at an average price of $69.63, for a total transaction of $306,372,000.00. The disclosure for this sale can be found here. Insiders sold a total of 8,915,207 shares of company stock valued at $621,355,933 over the last 90 days.

Several institutional investors and hedge funds have recently added to or reduced their stakes in AVLR. First Trust Advisors LP acquired a new stake in Avalara in the first quarter valued at approximately $3,424,000. FMR LLC raised its holdings in shares of Avalara by 128.3% during the first quarter. FMR LLC now owns 404,634 shares of the company’s stock worth $22,575,000 after purchasing an additional 227,359 shares during the last quarter. Metropolitan Life Insurance Co NY raised its holdings in shares of Avalara by 170.7% during the first quarter. Metropolitan Life Insurance Co NY now owns 8,722 shares of the company’s stock worth $486,000 after purchasing an additional 5,500 shares during the last quarter. MetLife Investment Advisors LLC raised its holdings in shares of Avalara by 213.1% during the first quarter. MetLife Investment Advisors LLC now owns 12,062 shares of the company’s stock worth $673,000 after purchasing an additional 8,209 shares during the last quarter. Finally, Marshall Wace LLP purchased a new position in shares of Avalara during the first quarter worth $2,232,000. 78.13% of the stock is owned by institutional investors and hedge funds.

Avalara Company Profile

Avalara, Inc provides cloud-based solutions for transaction tax compliance worldwide. It offers a suite of compliance solutions that enable businesses to address the complexity of transaction tax compliance; process transactions in real time; produce detailed records of transaction tax determinations; and reduce errors, audit exposure, and total transaction tax compliance costs.

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