Aveanna Healthcare (NASDAQ:AVAH) Sees Large Volume Increase - Should You Buy?

Key Points

• Aveanna Healthcare shares traded heavily, with volume rising 5% to about 1.93 million shares; the stock last traded at $13.695, above its prior close of $13.58.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $13.50. Recent firms raised targets as high as $15, although Truist maintained a Hold rating.
• The company exceeded quarterly expectations, reporting $0.22 in adjusted earnings per share versus $0.17 expected and $670.48 million in revenue versus $638.61 million estimated. However, insiders recently sold shares, and Aveanna carries a high debt-to-equity ratio of 4.47.

Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 1,930,093 shares traded hands during trading, an increase of 5% from the previous session's volume of 1,845,977 shares.The stock last traded at $13.6950 and had previously closed at $13.58.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on AVAH. Barclays increased their price target on shares of Aveanna Healthcare from $9.50 to $15.00 and gave the stock an "overweight" rating in a report on Friday, August 28th. Stephens raised shares of Aveanna Healthcare from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $10.00 to $11.00 in a report on Friday, May 15th. Truist Financial upped their price objective on shares of Aveanna Healthcare from $11.00 to $15.00 and gave the stock a "hold" rating in a research report on Monday, August 24th. Wall Street Zen cut Aveanna Healthcare from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 15th. Finally, Raymond James Financial lifted their price target on Aveanna Healthcare from $13.00 to $15.00 and gave the company a "strong-buy" rating in a research note on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Aveanna Healthcare presently has a consensus rating of "Moderate Buy" and an average price target of $13.50.

Aveanna Healthcare Price Performance

The company has a debt-to-equity ratio of 4.47, a quick ratio of 1.16 and a current ratio of 1.16. The stock has a market capitalization of $3.01 billion, a PE ratio of 11.23, a price-to-earnings-growth ratio of 0.85 and a beta of 1.97. The stock's 50 day moving average is $10.79 and its two-hundred day moving average is $8.35.

Aveanna Healthcare (NASDAQ:AVAH - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported $0.22 earnings per share for the quarter, beating analysts' consensus estimates of $0.17 by $0.05. The company had revenue of $670.48 million for the quarter, compared to analyst estimates of $638.61 million. Aveanna Healthcare had a return on equity of 80.70% and a net margin of 10.56%. On average, equities analysts anticipate that Aveanna Healthcare Holdings Inc. will post 0.75 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Jeff Shaner sold 90,000 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $11.50, for a total transaction of $1,035,000.00. Following the transaction, the chief executive officer directly owned 2,561,972 shares in the company, valued at $29,462,678. The trade was a 3.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Edwin Reisz sold 50,000 shares of the company's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $11.50, for a total value of $575,000.00. Following the completion of the sale, the insider owned 1,397,897 shares of the company's stock, valued at approximately $16,075,815.50. The trade was a 3.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 59,904,505 shares of company stock worth $649,301,514 in the last 90 days. Corporate insiders own 5.30% of the company's stock.

Institutional Trading of Aveanna Healthcare

Several institutional investors have recently made changes to their positions in AVAH. Caitong International Asset Management Co. Ltd increased its stake in Aveanna Healthcare by 252.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 3,351 shares of the company's stock worth $27,000 after acquiring an additional 2,400 shares during the last quarter. Quantbot Technologies LP purchased a new position in shares of Aveanna Healthcare during the 2nd quarter worth $43,000. Summit Securities Group LLC acquired a new stake in shares of Aveanna Healthcare during the 1st quarter worth about $53,000. Oxford Asset Management LLP purchased a new stake in Aveanna Healthcare in the 2nd quarter valued at about $64,000. Finally, C M Bidwell & Associates Ltd. purchased a new stake in Aveanna Healthcare in the 2nd quarter valued at about $69,000. Hedge funds and other institutional investors own 87.96% of the company's stock.

About Aveanna Healthcare

Aveanna Healthcare, Inc NASDAQ: AVAH is a national provider of in-home health care services, specializing in pediatric skilled nursing, therapy, and related support for medically complex and chronically ill children. The company delivers a range of clinical and therapeutic solutions designed to enable patients to receive care in the comfort of their own homes, reducing the need for hospital stays and long-term institutional care. Aveanna's offerings include registered nursing, physical, occupational and speech therapy, behavioral health counseling, and durable medical equipment coordination.

In addition to pediatric home health services, Aveanna operates adult home health and personal care support programs, assisting elderly and disabled adults with daily living activities, medication management, and rehabilitation therapies.

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