Alkami Technology (NASDAQ:ALKT) Shares Down 9.7% - Should You Sell?

Key Points

• Alkami Technology's stock price fell by 9.7% during mid-day trading, closing at $23.61, marking a significant drop from its previous close of $26.16, with trading volume down by 15% from average levels.
• Several analysts have updated their ratings for Alkami Technology, with a consensus rating of "Moderate Buy" and an average price target of $39.25, despite some price target reductions from firms like Needham and Barclays.
• Insider trading activity included a sale of 7,170 shares by insider Douglas A. Linebarger, while Director Joseph P. Payne purchased 8,200 shares, indicating mixed trends in insider sentiment.

Shares of Alkami Technology, Inc. (NASDAQ:ALKT - Get Free Report) were down 9.7% during trading on Thursday . The stock traded as low as $23.72 and last traded at $23.61. Approximately 929,983 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 1,094,050 shares. The stock had previously closed at $26.16.

Wall Street Analysts Forecast Growth

Several analysts recently commented on ALKT shares. Lake Street Capital reduced their target price on Alkami Technology from $47.00 to $41.00 and set a "buy" rating on the stock in a report on Thursday, May 1st. JPMorgan Chase & Co. started coverage on Alkami Technology in a research note on Wednesday, June 18th. They issued an "overweight" rating and a $40.00 price target on the stock. JMP Securities reissued a "market outperform" rating and issued a $46.00 price target on shares of Alkami Technology in a research note on Thursday, May 1st. Needham & Company LLC dropped their price target on Alkami Technology from $54.00 to $40.00 and set a "buy" rating on the stock in a research note on Thursday, May 1st. Finally, Barclays dropped their price target on Alkami Technology from $35.00 to $30.00 and set an "equal weight" rating on the stock in a research note on Monday, April 14th. Two investment analysts have rated the stock with a hold rating and six have issued a buy rating to the stock. According to data from MarketBeat.com, Alkami Technology has a consensus rating of "Moderate Buy" and an average target price of $39.25.

Alkami Technology Price Performance

The company has a quick ratio of 2.68, a current ratio of 2.68 and a debt-to-equity ratio of 1.17. The business has a 50-day moving average price of $28.55 and a two-hundred day moving average price of $28.88. The company has a market capitalization of $2.24 billion, a price-to-earnings ratio of -56.86 and a beta of 0.57.

Insider Transactions at Alkami Technology

In other news, Director Joseph P. Payne bought 8,200 shares of the stock in a transaction dated Thursday, May 15th. The shares were bought at an average cost of $30.46 per share, with a total value of $249,772.00. Following the completion of the transaction, the director directly owned 21,128 shares of the company's stock, valued at $643,558.88. This trade represents a 63.43% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO W Bryan Hill sold 20,365 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $28.36, for a total value of $577,551.40. Following the transaction, the chief financial officer directly owned 430,255 shares in the company, valued at $12,202,031.80. The trade was a 4.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 27,690 shares of company stock valued at $785,288 over the last ninety days. 18.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alkami Technology

A number of institutional investors and hedge funds have recently bought and sold shares of ALKT. CWM LLC raised its position in Alkami Technology by 176.2% in the 2nd quarter. CWM LLC now owns 942 shares of the company's stock valued at $28,000 after buying an additional 601 shares during the last quarter. Perkins Coie Trust Co grew its stake in shares of Alkami Technology by 62.5% during the 1st quarter. Perkins Coie Trust Co now owns 1,300 shares of the company's stock worth $34,000 after acquiring an additional 500 shares during the period. Versant Capital Management Inc bought a new position in shares of Alkami Technology during the 1st quarter worth $36,000. Amalgamated Bank grew its stake in shares of Alkami Technology by 50.8% during the 1st quarter. Amalgamated Bank now owns 2,091 shares of the company's stock worth $55,000 after acquiring an additional 704 shares during the period. Finally, Blue Trust Inc. grew its stake in shares of Alkami Technology by 27.6% during the 2nd quarter. Blue Trust Inc. now owns 1,852 shares of the company's stock worth $56,000 after acquiring an additional 401 shares during the period. 54.97% of the stock is owned by hedge funds and other institutional investors.

Alkami Technology Company Profile

Alkami Technology, Inc offers cloud-based digital banking solutions in the United States. The company's Alkami Platform allows financial institutions to onboard and engage new users, accelerate revenues, and enhance operational efficiency, with the support of a proprietary, cloud-based, and multi-tenant architecture.