Avid Technology (AVID) Downgraded by Zacks Investment Research to “Hold”

Zacks Investment Research lowered shares of Avid Technology (NASDAQ:AVID) from a strong-buy rating to a hold rating in a report released on Wednesday morning, Zacks.com reports.

According to Zacks, “Avid Technology, Inc. develops, markets, sells and supports a wide range of software and systems for creating and manipulating digital media content. Digital media are media elements, whether video or audio or graphics, in which the image, sound or picture is recorded and stored as digital values, as opposed to analog signals. The company’s systems are designed to improve the productivity of video and film editors by enabling them to edit moving pictures and sound in a faster, easier, and more cost-effective manner than traditional analog tape-based systems. “

A number of other brokerages have also commented on AVID. BWS Financial lowered Avid Technology from a hold rating to a sell rating and set a $5.00 target price on the stock. in a research report on Thursday, March 21st. Maxim Group reiterated a buy rating and issued a $14.00 target price on shares of Avid Technology in a research report on Tuesday, May 7th. ValuEngine upgraded Avid Technology from a hold rating to a buy rating in a research report on Friday, March 15th. Dougherty & Co upgraded Avid Technology from a sell rating to a neutral rating in a research report on Wednesday, January 30th. Finally, BidaskClub upgraded Avid Technology from a strong sell rating to a sell rating in a research report on Tuesday, March 19th. Two research analysts have rated the stock with a sell rating, three have given a hold rating and two have issued a buy rating to the stock. The company has a consensus rating of Hold and an average price target of $7.63.

Shares of AVID traded up $0.04 during mid-day trading on Wednesday, hitting $7.75. 373,333 shares of the company traded hands, compared to its average volume of 741,695. Avid Technology has a 1-year low of $4.37 and a 1-year high of $10.65. The company has a market cap of $325.50 million, a P/E ratio of 64.58, a price-to-earnings-growth ratio of 1.48 and a beta of 1.86.

Avid Technology (NASDAQ:AVID) last posted its quarterly earnings data on Monday, May 6th. The technology company reported $0.08 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.04 by $0.04. Avid Technology had a negative net margin of 0.46% and a negative return on equity of 7.54%. The firm had revenue of $103.32 million for the quarter, compared to the consensus estimate of $100.78 million. During the same quarter in the prior year, the company posted ($0.06) earnings per share. The company’s revenue for the quarter was up 5.5% compared to the same quarter last year. On average, research analysts expect that Avid Technology will post 0.52 EPS for the current fiscal year.

In related news, insider Ryan H. Murray sold 12,000 shares of the company’s stock in a transaction that occurred on Friday, May 10th. The stock was sold at an average price of $8.00, for a total value of $96,000.00. Following the sale, the insider now owns 35,995 shares in the company, valued at $287,960. The sale was disclosed in a legal filing with the SEC, which is available through this link. 5.90% of the stock is owned by corporate insiders.

A number of institutional investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP boosted its position in Avid Technology by 1.1% in the 3rd quarter. Dimensional Fund Advisors LP now owns 1,887,306 shares of the technology company’s stock worth $11,191,000 after purchasing an additional 20,989 shares in the last quarter. Royce & Associates LP boosted its position in Avid Technology by 1.5% in the 4th quarter. Royce & Associates LP now owns 1,530,248 shares of the technology company’s stock worth $7,269,000 after purchasing an additional 23,067 shares in the last quarter. Geode Capital Management LLC boosted its position in Avid Technology by 39.9% in the 1st quarter. Geode Capital Management LLC now owns 466,558 shares of the technology company’s stock worth $3,475,000 after purchasing an additional 133,000 shares in the last quarter. Wellington Management Group LLP boosted its position in Avid Technology by 11.0% in the 1st quarter. Wellington Management Group LLP now owns 413,463 shares of the technology company’s stock worth $3,080,000 after purchasing an additional 40,939 shares in the last quarter. Finally, Northern Trust Corp boosted its position in Avid Technology by 1.6% in the 1st quarter. Northern Trust Corp now owns 320,874 shares of the technology company’s stock worth $2,390,000 after purchasing an additional 5,105 shares in the last quarter. Institutional investors and hedge funds own 58.05% of the company’s stock.

Avid Technology Company Profile

Avid Technology, Inc develops, markets, sells, and supports software, hardware, and integrated solutions for video and audio content creation, management, and distribution worldwide. The company's video products and solutions include the Media Composer, which is used to edit video content, such as television programming, commercials, and films; Avid NEXIS shared storage systems; and Maestro product line solutions for the integration of virtual sets, augmented reality, and video wall control into existing workflows.

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