Aveanna Healthcare (NASDAQ:AVAH) Shares Gap Down - Should You Sell?

Key Points

• Aveanna Healthcare shares opened lower, falling from a prior close of $12.78 to $12.29 before trading around $12.47.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $14.06; recent targets range as high as $15.
• The company exceeded quarterly earnings and revenue expectations, but substantial insider selling—including 48.6 million shares sold over 90 days—may concern investors.

Shares of Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH - Get Free Report) gapped down prior to trading on Wednesday. The stock had previously closed at $12.78, but opened at $12.29. Aveanna Healthcare shares last traded at $12.4710, with a volume of 1,038,627 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on the company. Weiss Ratings reiterated a "hold (c+)" rating on shares of Aveanna Healthcare in a report on Thursday, July 2nd. BMO Capital Markets increased their price target on Aveanna Healthcare from $10.00 to $14.00 and gave the company an "outperform" rating in a research report on Friday, August 14th. UBS Group raised their price objective on Aveanna Healthcare from $8.00 to $13.00 and gave the company a "neutral" rating in a research note on Friday, August 14th. Raymond James Financial lifted their price objective on shares of Aveanna Healthcare from $13.00 to $15.00 and gave the stock a "strong-buy" rating in a report on Friday, August 14th. Finally, Barclays upped their target price on shares of Aveanna Healthcare from $9.50 to $15.00 and gave the stock an "overweight" rating in a research note on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $14.06.

Aveanna Healthcare Price Performance

The stock has a market cap of $2.70 billion, a PE ratio of 10.05, a P/E/G ratio of 0.78 and a beta of 1.97. 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 business has a 50 day moving average price of $12.08 and a two-hundred day moving average price of $9.05.

Aveanna Healthcare (NASDAQ:AVAH - Get Free Report) last issued its quarterly earnings results on Thursday, August 13th. The company reported $0.22 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.05. The business 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%. Research analysts expect that Aveanna Healthcare Holdings Inc. will post 0.77 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder J.H. Whitney Equity Partners V sold 12,496,077 shares of Aveanna Healthcare stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $11.50, for a total value of $143,704,885.50. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Rodney D. Windley sold 180,000 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 $2,070,000.00. Following the transaction, the director directly owned 2,078,017 shares in the company, valued at $23,897,195.50. This represents a 7.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 48,566,081 shares of company stock worth $558,509,932 in the last ninety days. Corporate insiders own 5.30% of the company's stock.

Institutional Investors Weigh In On Aveanna Healthcare

Several institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in Aveanna Healthcare in the 2nd quarter worth approximately $63,504,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Aveanna Healthcare in the 2nd quarter valued at $7,881,000. Braidwell LP grew its position in shares of Aveanna Healthcare by 39.1% during the 2nd quarter. Braidwell LP now owns 3,065,106 shares of the company's stock valued at $26,268,000 after purchasing an additional 861,600 shares in the last quarter. Bank of America Corp DE purchased a new position in shares of Aveanna Healthcare during the 2nd quarter valued at $6,124,000. Finally, Parkman Healthcare Partners LLC bought a new position in shares of Aveanna Healthcare in the second quarter worth $6,123,000. 87.96% of the stock is owned by hedge funds and other institutional investors.

About Aveanna Healthcare

Aveanna Healthcare Corporation is a provider of home-based healthcare services for children, adults and families in the United States. The company's services are designed to help patients receive medical and supportive care in their homes and communities, including individuals with complex, chronic or medically fragile conditions.

Aveanna's principal services include private-duty nursing, home health, hospice and personal care. It also provides pediatric therapy and related clinical services, including physical, occupational and speech therapy.

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