Allot Ltd. (NASDAQ:ALLT) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts have a “Moderate Buy” consensus on Allot, with five buy ratings, one hold and one sell among seven covering brokerages. The average 12-month price target is $13.38, well above the stock’s recent $7.83 price.
• Allot exceeded quarterly expectations, reporting $0.09 in EPS versus a $0.06 estimate and $27.74 million in revenue versus a $27.45 million consensus forecast.
• The board authorized a $40 million stock buyback, allowing repurchases of up to 11.7% of outstanding shares; however, insiders have sold 76,667 shares worth approximately $597,095 over the past 90 days.

Shares of Allot Ltd. (NASDAQ:ALLT - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the seven brokerages that are presently covering the stock, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation and five have given a buy recommendation to the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $13.3750.

A number of research analysts have recently commented on ALLT shares. Northland Securities set a $17.00 price objective on Allot in a report on Thursday. Cantor Fitzgerald restated an "overweight" rating and issued a $15.00 target price on shares of Allot in a report on Wednesday, May 13th. Needham & Company LLC upped their target price on Allot from $8.50 to $10.50 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Allot in a report on Friday, June 26th. Finally, Wall Street Zen raised shares of Allot from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th.

Allot Trading Down 1.3%

Shares of NASDAQ:ALLT opened at $7.83 on Friday. The stock has a market capitalization of $380.93 million, a PE ratio of 35.59 and a beta of 1.48. Allot has a 1 year low of $6.12 and a 1 year high of $11.92. The firm has a fifty day moving average price of $7.85 and a 200 day moving average price of $7.84.

Allot (NASDAQ:ALLT - Get Free Report) last posted its earnings results on Wednesday, August 12th. The communications equipment provider reported $0.09 EPS for the quarter, topping the consensus estimate of $0.06 by $0.03. Allot had a net margin of 9.40% and a return on equity of 9.64%. The firm had revenue of $27.74 million for the quarter, compared to the consensus estimate of $27.45 million. On average, sell-side analysts forecast that Allot will post 0.24 earnings per share for the current fiscal year.

Allot announced that its board has initiated a stock buyback program on Tuesday, June 23rd that permits the company to buyback $40.00 million in shares. This buyback authorization permits the communications equipment provider to repurchase up to 11.7% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Insider Activity

In related news, SVP Boaz Grossman sold 5,000 shares of Allot stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $7.37, for a total value of $36,850.00. Following the transaction, the senior vice president owned 192,000 shares in the company, valued at $1,415,040. This trade represents a 2.54% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Eyal David Harari sold 29,111 shares of the business's stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $7.64, for a total transaction of $222,408.04. Following the transaction, the chief executive officer directly owned 1,099,118 shares of the company's stock, valued at approximately $8,397,261.52. This represents a 2.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 76,667 shares of company stock valued at $597,095. 3.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Allot

Several hedge funds and other institutional investors have recently made changes to their positions in ALLT. JPMorgan Chase & Co. acquired a new position in shares of Allot during the 2nd quarter worth about $2,225,000. Russell Investments Group Ltd. bought a new stake in Allot during the 2nd quarter valued at approximately $350,000. Arrowstreet Capital Limited Partnership acquired a new stake in Allot in the 2nd quarter valued at approximately $156,000. Walleye Capital LLC acquired a new stake in Allot in the 2nd quarter valued at approximately $256,000. Finally, Marshall Wace LLP bought a new position in Allot in the 2nd quarter worth approximately $2,320,000. 51.50% of the stock is owned by institutional investors and hedge funds.

About Allot

Allot Ltd. is a provider of network intelligence and security solutions designed for service providers and enterprises worldwide. The company delivers software and cloud-based services that enable customers to gain real-time visibility into network traffic, enforce security policies and optimize bandwidth usage. Its platforms support a wide range of applications, from DDoS protection and threat prevention to subscriber experience management and network analytics.

Allot's product portfolio includes managed solutions for mobile and fixed-line operators, as well as cloud-native services that can be deployed across private, public and hybrid environments.

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