Alkami Technology (NASDAQ:ALKT) Trading Down 5.1% - Time to Sell?

Key Points

• Alkami Technology's stock fell 5.1% to $23.57 amid a trading volume that was 79% lower than its average, suggesting possible concerns among investors.
• Analysts rate Alkami Technology with a consensus "Moderate Buy" and an average price target of $39.25, indicating potential upside despite the recent stock decline.
• Significant insider trading activity was observed, including the CFO and CAO selling shares, while insiders have purchased a total of 1.4 million shares over the last three months, highlighting mixed signals regarding company confidence.

Alkami Technology, Inc. (NASDAQ:ALKT - Get Free Report) traded down 5.1% on Wednesday . The company traded as low as $23.86 and last traded at $23.57. 247,076 shares were traded during mid-day trading, a decline of 79% from the average session volume of 1,204,373 shares. The stock had previously closed at $24.84.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. assumed coverage on shares of Alkami Technology in a research report on Wednesday, June 18th. They issued an "overweight" rating and a $40.00 price target for the company. Six analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Alkami Technology has a consensus rating of "Moderate Buy" and an average price target of $39.25.

Alkami Technology Trading Down 4.3%

The company has a debt-to-equity ratio of 1.17, a current ratio of 2.68 and a quick ratio of 2.68. The business's 50-day moving average price is $24.48 and its two-hundred day moving average price is $26.64. The company has a market capitalization of $2.47 billion, a price-to-earnings ratio of -62.69 and a beta of 0.58.

Insider Activity at Alkami Technology

In related news, CFO W Bryan Hill sold 20,366 shares of Alkami Technology stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $24.76, for a total value of $504,262.16. Following the transaction, the chief financial officer directly owned 409,889 shares of the company's stock, valued at $10,148,851.64. This trade represents a 4.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Prerna Sachdeva sold 2,967 shares of Alkami Technology stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $24.76, for a total transaction of $73,462.92. Following the completion of the transaction, the chief accounting officer directly owned 66,061 shares in the company, valued at $1,635,670.36. This trade represents a 4.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have bought 1,396,162 shares of company stock valued at $29,692,440 over the last three months. 18.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. George Kaiser Family Foundation bought a new position in Alkami Technology in the first quarter valued at approximately $2,948,000. Harbor Capital Advisors Inc. increased its stake in Alkami Technology by 370.5% in the second quarter. Harbor Capital Advisors Inc. now owns 63,660 shares of the company's stock valued at $1,919,000 after acquiring an additional 50,131 shares during the last quarter. Amalgamated Bank grew its stake in shares of Alkami Technology by 50.8% during the first quarter. Amalgamated Bank now owns 2,091 shares of the company's stock worth $55,000 after buying an additional 704 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Alkami Technology by 6.7% during the first quarter. Vanguard Group Inc. now owns 7,949,573 shares of the company's stock worth $208,676,000 after buying an additional 501,722 shares during the last quarter. Finally, Corebridge Financial Inc. grew its stake in shares of Alkami Technology by 12.6% during the first quarter. Corebridge Financial Inc. now owns 29,714 shares of the company's stock worth $780,000 after buying an additional 3,325 shares during the last quarter. 54.97% of the stock is owned by institutional investors.

About Alkami Technology

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.

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