Alkami Technology (NASDAQ:ALKT) Sees 5.9% Rise - Is It a Good Investment?

Shares of Alkami Technology, Inc. (NASDAQ:ALKT) increased by 5.9% on Friday, reaching as high as $30.77 before settling at $30.67. During the trading session, about 742,288 shares exchanged hands, marking a 25% increase compared to the average daily volume of 591,715 shares. The stock had previously closed at $28.96.

Analyst Price Target Updates

Recently, several analysts have provided updates regarding Alkami Technology. Needham & Company LLC raised their price target from $43.00 to $54.00, assigning a "buy" rating on October 31st. Similarly, Craig Hallum elevated their target from $38.00 to $45.00, while giving the stock a "buy" rating on the same date. On December 9th, JPMorgan Chase & Co. increased its target for Alkami shares from $42.00 to $45.00, labeling it as “overweight.” Barclays also adjusted their target from $35.00 to $41.00, maintaining an "equal weight" rating. Lastly, The Goldman Sachs Group raised their price objective from $34.00 to $39.00 and assigned a "neutral" rating in their report on November 1st. Currently, two analysts have a hold rating while six have a buy rating on the stock. According to data from MarketBeat.com, Alkami Technology has an average rating of "Moderate Buy" with an average target price of $43.00.

Current Stock Performance

Alkami Technology has a debt-to-equity ratio of 0.05, a quick ratio of 3.52, and a current ratio of 3.52. The company holds a market capitalization of $3.10 billion, a PE ratio of -65.62, and a beta of 0.47. The stock’s 50-day moving average stands at $34.85, while the 200-day moving average is $34.99.

In its latest quarterly earnings release on February 27th, Alkami reported an earnings per share (EPS) of ($0.05), missing the estimated $0.08 by ($0.13). The company recorded a negative net margin of 14.55% and a negative return on equity of 11.31%. Revenue for that quarter was $89.66 million, slightly above the consensus estimate of $89.63 million. Analysts predict that Alkami Technology will post an EPS of -0.34 for the current fiscal year.

Insider Activity

In recent insider trading news, CFO W Bryan Hill sold 100,000 shares of stock on January 13th at an average price of $33.43, generating $3,343,000 from the transaction. Post-sale, he holds 353,841 shares valued at approximately $11,828,904.63, reflecting a 22.03% decrease in his ownership. This transaction was disclosed through a filing with the SEC. In another move, insider Stephen Bohanon sold 15,491 shares on December 3rd for an average price of $38.37, totaling $594,389.67. Following this, Bohanon holds 358,204 shares currently valued at $13,744,287.48, marking a 4.15% decrease in ownership. Over the last quarter, insiders sold 283,298 shares valued at $10,600,144, and currently, insiders own 25.90% of the stock.

Institutional Investor Movements

Several hedge funds and institutional investors recently adjusted their stakes in Alkami Technology. Essex Investment Management Co. LLC acquired a new position in the stock worth $34,000 during the fourth quarter. Advisors Asset Management Inc. boosted its shareholding by 117.9% during the third quarter, now owning 1,166 shares valued at $37,000 after an additional purchase of 631 shares. Blue Trust Inc. increased its position by 507.0% during the same period, now holding 1,214 shares worth $38,000. Additionally, Quarry LP purchased a new stake valued at approximately $61,000 in the fourth quarter. Lastly, Covestor Ltd amplified its holdings by 6,300.0% during the third quarter, owning 2,688 shares worth $85,000 after buying an additional 2,646 shares. Institutional investors currently hold 54.97% of the stock.

About Alkami Technology

Alkami Technology, Inc. delivers cloud-based digital banking solutions within the United States. The company's Alkami Platform supports financial institutions in onboarding and engaging new users while enhancing their operational efficiency, through its proprietary, cloud-based, multi-tenant architecture.

Alkami, Stock, Investment