Avalara (NYSE:AVLR) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research lowered shares of Avalara (NYSE:AVLR) from a hold rating to a sell rating in a research report sent to investors on Wednesday, 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. “

AVLR has been the subject of a number of other reports. Piper Jaffray Companies began coverage on Avalara in a research report on Monday, October 28th. They issued an overweight rating and a $93.00 target price for the company. Stephens set a $105.00 price objective on Avalara and gave the company a buy rating in a research report on Tuesday, September 24th. Mizuho reiterated a buy rating and set a $95.00 price objective (up previously from $90.00) on shares of Avalara in a research report on Wednesday, November 6th. Finally, ValuEngine downgraded Avalara from a hold rating to a sell rating in a research report on Thursday, December 12th. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. Avalara has an average rating of Buy and a consensus price target of $85.96.

AVLR traded down $0.52 during trading on Wednesday, reaching $85.99. The stock had a trading volume of 10,316 shares, compared to its average volume of 671,254. The firm has a market capitalization of $6.55 billion, a price-to-earnings ratio of -79.55 and a beta of 0.51. Avalara has a 1-year low of $37.55 and a 1-year high of $94.31. The stock has a 50 day moving average of $76.57 and a two-hundred day moving average of $77.27.

Avalara (NYSE:AVLR) last released its earnings results on Tuesday, November 5th. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.20) by $0.19. The firm had revenue of $98.50 million during the quarter, compared to the consensus estimate of $93.13 million. Avalara had a negative return on equity of 15.51% and a negative net margin of 15.13%. The firm’s revenue for the quarter was up 41.7% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.14) earnings per share. As a group, equities research analysts expect that Avalara will post -0.64 earnings per share for the current fiscal year.

In other news, insider William Ingram sold 25,000 shares of the firm’s stock in a transaction dated Wednesday, November 13th. The stock was sold at an average price of $70.96, for a total value of $1,774,000.00. Following the sale, the insider now directly owns 25,979 shares of the company’s stock, valued at $1,843,469.84. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Scott M. Mcfarlane sold 15,000 shares of the firm’s stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $84.34, for a total value of $1,265,100.00. Following the completion of the sale, the insider now directly owns 763,653 shares in the company, valued at $64,406,494.02. The disclosure for this sale can be found here. Insiders sold 122,656 shares of company stock valued at $8,972,178 in the last 90 days. Corporate insiders own 21.10% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northern Trust Corp boosted its position in shares of Avalara by 21.4% during the second quarter. Northern Trust Corp now owns 356,539 shares of the company’s stock worth $25,742,000 after purchasing an additional 62,732 shares in the last quarter. BB&T Securities LLC increased its position in Avalara by 47.0% during the 3rd quarter. BB&T Securities LLC now owns 10,042 shares of the company’s stock valued at $666,000 after purchasing an additional 3,213 shares during the period. Paloma Partners Management Co purchased a new stake in shares of Avalara in the 2nd quarter worth about $4,423,000. Lisanti Capital Growth LLC grew its position in shares of Avalara by 22.8% in the 3rd quarter. Lisanti Capital Growth LLC now owns 18,670 shares of the company’s stock worth $1,256,000 after buying an additional 3,470 shares during the period. Finally, Point72 Asset Management L.P. grew its position in shares of Avalara by 3,310.4% in the 3rd quarter. Point72 Asset Management L.P. now owns 149,101 shares of the company’s stock worth $10,033,000 after buying an additional 144,729 shares during the period. Institutional investors and hedge funds own 81.08% of the company’s stock.

About Avalara

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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