Allot (NASDAQ:ALLT) Share Price Passes Above Two Hundred Day Moving Average - What's Next?

Key Points

• Allot shares rose above their 200-day moving average, trading as high as $8.90 and last changing hands at $8.59. The move comes as the stock remains below Wall Street’s consensus target price of $13.62.
• Analysts are generally constructive on the stock, with five Buy ratings, one Hold, and one Sell. Recent notes from Needham and Cantor Fitzgerald included higher price targets, while the average rating is now “Moderate Buy.”
• Allot authorized a $40 million share repurchase plan, which could cover up to 11.7% of its shares. The company also reported quarterly EPS of $0.06 on revenue of $26.43 million, while insiders have sold shares in recent months.

Allot Ltd. (NASDAQ:ALLT - Get Free Report) shares crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $8.23 and traded as high as $8.90. Allot shares last traded at $8.59, with a volume of 175,887 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on ALLT. Needham & Company LLC raised their price objective on Allot from $8.50 to $10.50 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Wall Street Zen upgraded Allot from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Cantor Fitzgerald restated an "overweight" rating and issued a $15.00 target price on shares of Allot in a research note on Wednesday, May 13th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Allot in a research report on Friday, June 26th. Five research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Allot currently has a consensus rating of "Moderate Buy" and a consensus target price of $13.62.

Allot Stock Down 1.6%

The company has a market cap of $417.86 million, a P/E ratio of 66.08 and a beta of 1.46. The firm has a fifty day moving average price of $7.80 and a 200 day moving average price of $8.23.

Allot (NASDAQ:ALLT - Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The communications equipment provider reported $0.06 earnings per share (EPS) for the quarter. Allot had a return on equity of 7.38% and a net margin of 5.68%.The business had revenue of $26.43 million during the quarter. On average, sell-side analysts anticipate that Allot Ltd. will post 0.21 earnings per share for the current year.

Allot announced that its Board of Directors has authorized a share repurchase plan on Tuesday, June 23rd that authorizes the company to repurchase $40.00 million in shares. This repurchase authorization authorizes the communications equipment provider to buy up to 11.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Allot

In other news, SVP Boaz Grossman sold 5,000 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at approximately $1,415,040. This trade represents a 2.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mark Shteiman sold 6,000 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $7.58, for a total transaction of $45,480.00. Following the completion of the transaction, the insider directly owned 214,000 shares in the company, valued at approximately $1,622,120. The trade was a 2.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 47,556 shares of company stock worth $374,464. Insiders own 3.40% of the company's stock.

Hedge Funds Weigh In On Allot

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quarry LP bought a new position in Allot during the 3rd quarter worth approximately $37,000. Kestra Advisory Services LLC bought a new position in Allot in the fourth quarter valued at $62,000. State of Wyoming bought a new position in Allot in the fourth quarter valued at $66,000. Wells Fargo & Company MN increased its stake in Allot by 200.0% in the 4th quarter. Wells Fargo & Company MN now owns 9,000 shares of the communications equipment provider's stock valued at $88,000 after buying an additional 6,000 shares during the last quarter. Finally, Invesco Ltd. acquired a new stake in shares of Allot in the fourth quarter valued at about $112,000. Institutional investors own 51.50% of the company's stock.

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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