Impactive Capital LP, a New York-based investment firm, has recently increased its holdings in Avid Technology Inc (AVID, Financial). The transaction took place on August 9, 2023, with the firm adding 36,577 shares at a price of $26.55 per share. This move has increased Impactive Capital's total holdings in Avid Technology to 7,168,370 shares, representing 7.72% of their portfolio and 16.30% of Avid Technology's total shares.
About Impactive Capital LP
Located at 152 West 57th Street, 17th Floor, New York City, Impactive Capital LP is an investment firm with a focus on long-term, value-oriented investments. The firm currently holds stocks in 9 companies, with a total equity of $2.47 billion. Its top holdings include SLM Corp (SLM, Financial), Asbury Automotive Group Inc (ABG, Financial), Crown Holdings Inc (CCK, Financial), Envestnet Inc (ENV, Financial), and WEX Inc (WEX, Financial). The firm's investments are primarily concentrated in the Technology and Consumer Cyclical sectors. 
Overview of Avid Technology Inc
Avid Technology Inc, a US-based company, specializes in the development and sale of software and hardware for digital media production and management. The company, which went public on March 12, 1993, has a market capitalization of $1.17 billion and a current stock price of $26.66. With a PE ratio of 26.93, the company is considered modestly undervalued according to the GF Value Rank, with a GF Value of $29.46. 
Avid Technology Inc's Stock Performance
Avid Technology Inc has a GF Score of 75/100, indicating good outperformance potential. The company's Financial Strength is ranked 3/10, while its Profitability Rank is 7/10. The company's Growth Rank is 5/10, and its Momentum Rank is 7/10. The company's Piotroski F-Score is 5, and its Altman Z score is -1.70, indicating potential financial distress.
Financial Health of Avid Technology Inc
Avid Technology Inc's financial health is characterized by a cash to debt ratio of 0.10 and an interest coverage of 3.83. The company's ROE is not applicable, while its ROA is 17.15. The company has seen a gross margin growth of 3.00 and an operating margin growth of 34.90. However, its revenue growth over the past three years has been negative, at -0.60.
Avid Technology Inc's Stock Momentum
The company's stock momentum is characterized by an RSI 5 Day of 61.48, an RSI 9 Day of 59.46, and an RSI 14 Day of 57.28. The company's Momentum Index 6 - 1 Month is -10.03, and its Momentum Index 12 - 1 Month is -1.14.
Conclusion
Impactive Capital LP's recent acquisition of additional shares in Avid Technology Inc underscores the firm's confidence in the company's potential for growth. Despite some financial challenges, Avid Technology Inc has shown promising signs of profitability and growth, making it a potentially valuable addition to Impactive Capital LP's portfolio. As always, investors are advised to conduct their own thorough research before making any investment decisions.
