Alkami Technology (NASDAQ:ALKT) Issues Earnings Results

Key Points

• Alkami Technology missed earnings expectations: The company reported a quarterly loss of $0.08 per share, versus analysts’ estimated profit of $0.15, while revenue of $129.84 million slightly exceeded the $128.70 million consensus.
• Shares rose 0.9% to $18.33 following the results, but Alkami remains unprofitable, with a negative 10.55% net margin and an $1.96 billion market capitalization.
• Insider buying provided a positive signal: Insiders purchased more than 4 million shares worth approximately $67.6 million in the last quarter, while analysts maintained an overall “Hold” rating with an average price target of $22.20.

Alkami Technology (NASDAQ:ALKT - Get Free Report) announced its earnings results on Wednesday. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.23), FiscalAI reports. The business had revenue of $129.84 million for the quarter, compared to analyst estimates of $128.70 million. Alkami Technology had a negative return on equity of 8.91% and a negative net margin of 10.55%.

Alkami Technology Trading Up 0.9%

Alkami Technology stock traded up $0.16 during midday trading on Wednesday, hitting $18.33. 2,141,491 shares of the stock were exchanged, compared to its average volume of 1,863,468. The company has a current ratio of 2.30, a quick ratio of 2.30 and a debt-to-equity ratio of 0.96. The stock's 50-day simple moving average is $16.86 and its 200 day simple moving average is $17.33. Alkami Technology has a fifty-two week low of $13.98 and a fifty-two week high of $26.97. The stock has a market capitalization of $1.96 billion, a price-to-earnings ratio of -39.00 and a beta of 0.57.

Insiders Place Their Bets

In other news, Director Atlantic Genpar (Bermu General purchased 844,772 shares of the company's stock in a transaction dated Wednesday, May 6th. The stock was acquired at an average price of $16.63 per share, with a total value of $14,048,558.36. Following the purchase, the director directly owned 17,445,994 shares in the company, valued at approximately $290,126,880.22. This represents a 5.09% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. In the last quarter, insiders have bought 4,041,543 shares of company stock valued at $67,594,674. Insiders own 17.10% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Smartleaf Asset Management LLC increased its stake in Alkami Technology by 91.7% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,447 shares of the company's stock worth $34,000 after acquiring an additional 692 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of Alkami Technology by 398.3% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,146 shares of the company's stock worth $35,000 after purchasing an additional 916 shares during the period. Global Retirement Partners LLC acquired a new stake in shares of Alkami Technology during the 4th quarter worth about $37,000. Kestra Advisory Services LLC acquired a new stake in shares of Alkami Technology during the 4th quarter worth about $48,000. Finally, Advisors Asset Management Inc. raised its holdings in Alkami Technology by 32.4% in the 1st quarter. Advisors Asset Management Inc. now owns 2,425 shares of the company's stock valued at $64,000 after buying an additional 594 shares during the period. 54.97% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

ALKT has been the topic of a number of research reports. Citizens Jmp decreased their target price on shares of Alkami Technology from $28.00 to $23.00 and set a "market outperform" rating on the stock in a research note on Thursday, April 30th. Weiss Ratings restated a "sell (e+)" rating on shares of Alkami Technology in a research report on Friday, June 5th. Finally, JPMorgan Chase & Co. cut their price target on Alkami Technology from $20.00 to $19.00 and set an "overweight" rating for the company in a report on Monday, June 22nd. Three equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $22.20.

Alkami Technology Company Profile

Alkami Technology, Inc is a provider of cloud-based digital banking and engagement solutions tailored for banks and credit unions. The company's platform offers a comprehensive suite of online and mobile banking features, including bill payment, peer-to-peer transfers, card management, streamlined account opening and real-time alerts, all designed to enhance the end-user experience and drive customer loyalty.

Built on a multi-tenant, software-as-a-service (SaaS) architecture hosted in the cloud, Alkami's platform leverages modern APIs and a partner ecosystem to integrate third-party fintech applications and services.

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