Alkami Technology (NASDAQ:ALKT) Shares Gap Down After Earnings Miss

Key Points

• EPS miss and stock reaction: Alkami reported ($0.09) EPS vs. $0.21 expected (a $0.30 miss), and shares gapped down to open at $15.35 from $16.42, trading down roughly 4.9%.
• Revenue growth but still unprofitable: Revenue came in at $126.14M (+28.9% YoY), slightly above estimates, but the company has a negative net margin (10.74%) and negative ROE (7.02%).
• Analyst cuts and ownership activity: Several firms trimmed price targets (consensus rating "Hold", average target $26.67), while institutions added stakes even as insiders recorded modest share sales — insiders own 17.10% and institutions own about 54.97%.

Alkami Technology, Inc. (NASDAQ:ALKT - Get Free Report)'s stock price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $16.42, but opened at $15.35. Alkami Technology shares last traded at $15.2330, with a volume of 242,440 shares changing hands.

The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of $0.21 by ($0.30). The company had revenue of $126.14 million during the quarter, compared to analyst estimates of $125.23 million. Alkami Technology had a negative net margin of 10.74% and a negative return on equity of 7.02%. The firm's quarterly revenue was up 28.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.08 EPS.

Wall Street Analysts Forecast Growth

ALKT has been the topic of several research reports. Barclays dropped their price objective on shares of 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. Needham & Company LLC dropped their price objective on shares of Alkami Technology from $32.00 to $22.00 and set a "buy" rating on the stock in a research note on Thursday, February 26th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Alkami Technology in a research note on Wednesday, January 21st. JPMorgan Chase & Co. dropped their price objective on shares of Alkami Technology from $38.00 to $22.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 18th. Finally, Citizens Jmp dropped their price objective on shares of 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 analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $26.67.

Insider Activity at Alkami Technology

In other news, insider Douglas A. Linebarger sold 5,518 shares of the stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $16.90, for a total transaction of $93,254.20. Following the transaction, the insider owned 216,233 shares in the company, valued at $3,654,337.70. This represents a 2.49% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Cassandra Hudson sold 6,869 shares of the stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $16.90, for a total transaction of $116,086.10. Following the transaction, the chief financial officer owned 286,757 shares in the company, valued at approximately $4,846,193.30. This trade represents a 2.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have acquired 3,351,515 shares of company stock worth $59,829,413 and have sold 13,739 shares worth $232,189. Company insiders own 17.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. General Atlantic L.P. increased its stake in shares of Alkami Technology by 24.3% during the 3rd quarter. General Atlantic L.P. now owns 11,991,480 shares of the company's stock worth $297,868,000 after purchasing an additional 2,346,162 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Alkami Technology by 5.7% during the 4th quarter. Vanguard Group Inc. now owns 8,414,419 shares of the company's stock worth $194,121,000 after purchasing an additional 456,275 shares during the last quarter. Westfield Capital Management Co. LP increased its stake in shares of Alkami Technology by 33.1% during the 4th quarter. Westfield Capital Management Co. LP now owns 4,118,355 shares of the company's stock worth $95,010,000 after purchasing an additional 1,023,297 shares during the last quarter. ArrowMark Colorado Holdings LLC increased its stake in shares of Alkami Technology by 56.3% during the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 3,872,873 shares of the company's stock worth $96,202,000 after purchasing an additional 1,394,617 shares during the last quarter. Finally, Alliancebernstein L.P. increased its stake in shares of Alkami Technology by 13.3% during the 3rd quarter. Alliancebernstein L.P. now owns 3,679,746 shares of the company's stock worth $91,405,000 after purchasing an additional 430,632 shares during the last quarter. Institutional investors and hedge funds own 54.97% of the company's stock.

Alkami Technology Trading Down 4.9%

The company's 50 day moving average price is $16.69 and its 200 day moving average price is $19.56. The company has a market cap of $1.67 billion, a price-to-earnings ratio of -33.87 and a beta of 0.57. The company has a debt-to-equity ratio of 1.01, a quick ratio of 2.09 and a current ratio of 2.09.

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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