Alkami Technology (NASDAQ:ALKT) Releases Quarterly Earnings Results, Misses Estimates By $0.30 EPS

Key Points

• Earnings miss: Alkami reported EPS of ($0.09), missing the consensus by $0.30, although revenue of $126.14 million was slightly above estimates.
• Significant insider buying: Two directors bought 900,000 and 500,000 shares at roughly $18.41 and $18.33, respectively, and insiders acquired 3.35 million shares over the last three months, now owning 17.10% of the stock.
• Market and analyst context: Shares traded up to $16.42 (market cap $1.76B) despite negative net margin and ROE, and the consensus rating is "Hold" with an average price target of $26.67.

Alkami Technology (NASDAQ:ALKT - Get Free Report) released its quarterly earnings results on Wednesday. The company reported ($0.09) EPS for the quarter, missing the consensus estimate of $0.21 by ($0.30), FiscalAI reports. Alkami Technology had a negative return on equity of 7.02% and a negative net margin of 10.74%.The business had revenue of $126.14 million during the quarter, compared to analyst estimates of $125.23 million.

Alkami Technology Stock Up 0.9%

NASDAQ ALKT traded up $0.15 on Wednesday, hitting $16.42. 2,223,247 shares of the stock traded hands, compared to its average volume of 1,890,138. The stock has a 50-day moving average of $16.70 and a 200 day moving average of $19.58. Alkami Technology has a twelve month low of $14.11 and a twelve month high of $31.66. The company has a market capitalization of $1.76 billion, a P/E ratio of -35.70 and a beta of 0.57. The company has a current ratio of 2.09, a quick ratio of 2.09 and a debt-to-equity ratio of 1.01.

Insider Activity

In other news, Director Atlantic L.P. General acquired 900,000 shares of the business's stock in a transaction on Wednesday, March 11th. The shares were purchased at an average price of $18.41 per share, for a total transaction of $16,569,000.00. Following the completion of the purchase, the director directly owned 14,879,451 shares of the company's stock, valued at $273,930,692.91. This represents a 6.44% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Atlantic Genpar (Bermu General acquired 500,000 shares of the business's stock in a transaction on Thursday, March 12th. The shares were purchased at an average price of $18.33 per share, for a total transaction of $9,165,000.00. Following the purchase, the director directly owned 15,379,451 shares of the company's stock, valued at $281,905,336.83. This represents a 3.36% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have acquired 3,351,515 shares of company stock valued at $59,829,413 and have sold 13,739 shares valued at $232,189. 17.10% of the stock is owned by corporate insiders.

Institutional Trading of Alkami Technology

Institutional investors and hedge funds have recently bought and sold shares of the company. Smartleaf Asset Management LLC raised its position in shares of Alkami Technology by 91.7% during the 4th quarter. Smartleaf Asset Management LLC now owns 1,447 shares of the company's stock worth $34,000 after purchasing an additional 692 shares during the period. EverSource Wealth Advisors LLC raised its position 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 approximately $37,000. Kestra Advisory Services LLC acquired a new stake in shares of Alkami Technology during the 4th quarter worth approximately $48,000. Finally, Advisors Asset Management Inc. raised its position in shares of Alkami Technology by 32.4% during the 1st quarter. Advisors Asset Management Inc. now owns 2,425 shares of the company's stock worth $64,000 after purchasing an additional 594 shares during the period. Institutional investors and hedge funds own 54.97% of the company's stock.

Analyst Ratings Changes

Several research analysts recently commented on ALKT shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alkami Technology in a research note on Wednesday, January 21st. Needham & Company LLC cut their price target on Alkami Technology from $32.00 to $22.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. JPMorgan Chase & Co. cut their price target on Alkami Technology from $38.00 to $22.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Barclays cut their price target on Alkami Technology from $25.00 to $21.00 and set an "equal weight" rating on the stock in a research note on Thursday, February 26th. Finally, Citizens Jmp cut their price target on Alkami Technology from $40.00 to $28.00 and set a "market outperform" rating on the stock in a research note on Thursday, February 26th. Four equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Alkami Technology presently has a consensus rating of "Hold" and an average price target of $26.67.

About Alkami Technology

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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