AvePoint Shares Hit Fresh Annual Low Amid Analyst Target Cut

Shares of software provider AvePoint plunged to their lowest point in a year during Tuesday’s trading session. The decline was primarily triggered by a downward revision of the price target by analysts at B. Riley Securities, overshadowing the company’s continued operational strength in recurring revenue streams. The stock dropped to an intraday low of $11.28.

Operational Strength Contrasts with Market Sentiment

Financially, AvePoint presents a robust picture that stands in stark contrast to its current share price performance. The company’s Annual Recurring Revenue (ARR) climbed 26% year-over-year to $390 million. Its cloud-based Software-as-a-Service (SaaS) segment was a particular standout, posting impressive growth of 38% and now accounting for 77% of total revenue. AvePoint has set an ambitious long-term goal of reaching $1 billion in ARR by 2029. Despite this solid operational footing, market skepticism persists, as evidenced by a short interest position representing approximately 6.7% of the float as of mid-January.

Analyst Adjustment Weighs on Valuation

The immediate catalyst for the sell-off was an analyst update from B. Riley Securities. The firm lowered its price target on AvePoint from $25 to $22 per share. Notably, the analysts maintained their “Buy” rating on the stock, indicating they still see significant upside potential. However, the market reacted negatively to the adjusted valuation. This move appears to be a delayed response to the company’s latest quarterly earnings report. For the third quarter of fiscal 2025, AvePoint reported revenue of $109.73 million, surpassing forecasts, but its earnings per share of $0.06 narrowly missed the consensus estimate of $0.07.

Should investors sell immediately? Or is it worth buying AvePoint?

Index Inclusion and Technical Context

A technical development is scheduled for Wednesday, with AvePoint shares set to join the Solactive Wolfe Research Long Leg Index at the market open. With a market capitalization hovering around $2.5 billion, the stock is currently trading at the lower end of its 52-week range. This marks a notable pullback from the over-$20 levels it commanded last year. The coming sessions will be crucial in determining whether support can be established around the $11.30 mark.

Key Data Points:
* Shares reached a new 52-week low of $11.28.
* B. Riley Securities reduced its price target to $22 from $25, while keeping a “Buy” rating.
* SaaS revenue increased by 38% in the most recent quarterly report.
* The stock will be added to the Solactive Wolfe Research Long Leg Index tomorrow.