Alkami Technology (NASDAQ:ALKT) Trading Down 6.6% - Time to Sell?

Key Points

• Shares fell ~6.6% to $15.38 on Thursday (intraday low $15.56) with ~499,474 shares traded, a ~74% drop from the stock's average daily volume.
• Multiple analysts trimmed price targets (Needham $32→$22, Barclays $25→$21, JPMorgan $38→$22), leaving a MarketBeat consensus of "Hold" and an average price target of $26.67.
• Insider activity was mixed: Atlantic L.P. bought 900,000 shares

Alkami Technology, Inc. (NASDAQ:ALKT - Get Free Report)'s stock price dropped 6.6% during trading on Thursday . The stock traded as low as $15.56 and last traded at $15.38. Approximately 499,474 shares were traded during trading, a decline of 74% from the average daily volume of 1,955,685 shares. The stock had previously closed at $16.47.

Wall Street Analyst Weigh In

ALKT has been the subject of several recent research reports. Needham & Company LLC lowered their target price on Alkami Technology from $32.00 to $22.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Weiss Ratings reissued a "sell (d-)" rating on shares of Alkami Technology in a report on Wednesday, January 21st. Barclays decreased their price objective on Alkami Technology from $25.00 to $21.00 and set an "equal weight" rating for the company in a report on Thursday, February 26th. Citizens Jmp decreased their price objective on Alkami Technology from $40.00 to $28.00 and set a "market outperform" rating for the company in a report on Thursday, February 26th. Finally, JPMorgan Chase & Co. decreased their price objective on Alkami Technology from $38.00 to $22.00 and set an "overweight" rating for the company in a report on Wednesday, February 18th. Four analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $26.67.

Alkami Technology Trading Down 5.3%

The firm has a market capitalization of $1.66 billion, a P/E ratio of -33.90 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. The firm has a 50 day moving average price of $16.99 and a two-hundred day moving average price of $20.39.

Insider Buying and Selling

In other news, 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 value of $116,086.10. Following the completion of the sale, the chief financial officer owned 286,757 shares in the company, valued at $4,846,193.30. This represents a 2.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Atlantic L.P. General bought 900,000 shares of Alkami Technology stock in a transaction dated Wednesday, March 11th. The stock was acquired at an average price of $18.41 per share, with a total value of $16,569,000.00. Following the acquisition, the director directly owned 14,879,451 shares of the company's stock, valued at approximately $273,930,692.91. This represents a 6.44% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders have bought 3,351,515 shares of company stock valued at $59,829,413 and have sold 13,739 shares valued at $232,189. Company insiders own 18.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. First Horizon Corp bought a new position in shares of Alkami Technology in the third quarter worth about $30,000. Smartleaf Asset Management LLC increased its stake in shares of Alkami Technology by 91.7% in the fourth 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 increased its stake in shares of Alkami Technology by 398.3% in the second 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 bought a new position in shares of Alkami Technology in the fourth quarter worth about $37,000. Finally, AlphaQuest LLC increased its stake in shares of Alkami Technology by 54.5% in the third quarter. AlphaQuest LLC now owns 1,542 shares of the company's stock worth $38,000 after purchasing an additional 544 shares during the period. Institutional investors and hedge funds own 54.97% of the company's stock.

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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