Allot Ltd. (NASDAQ:ALLT) Stock Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts rate Allot “Moderate Buy”: Four of six analysts recommend buying the stock, while one rates it a hold and one a sell. The average 12-month price target is $13.38, above the reported $8.43 share price.
• Allot beat quarterly expectations with adjusted EPS of $0.09 versus the $0.06 consensus and revenue of $27.74 million versus $27.45 million expected. The company also authorized a $40 million share repurchase, representing up to 11.7% of outstanding shares.
• Insiders sold 66,333 shares worth $512,240 over the last quarter, while institutional investors own 51.5% of the company and several hedge funds increased their positions.

Shares of Allot Ltd. (NASDAQ:ALLT - Get Free Report) have received a consensus rating of "Moderate Buy" from the six analysts that are covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell rating, one has given a hold rating and four have issued a buy rating on the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $13.38.

A number of research analysts recently weighed in on the company. Northland Securities set a $17.00 price objective on Allot in a report on Thursday, August 13th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Allot in a report on Tuesday, September 22nd.

Insider Buying and Selling

In related news, insider Gili Groner sold 26,666 shares of the company's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $7.86, for a total value of $209,594.76. Following the sale, the insider owned 59,467 shares in the company, valued at $467,410.62. This represents a 30.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eyal Harari sold 29,111 shares of Allot stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $7.64, for a total value 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 66,333 shares of company stock worth $512,240 in the last quarter. Company insiders own 3.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Sei Investments Co. grew its stake in Allot by 744.0% in the 1st quarter. Sei Investments Co. now owns 523,162 shares of the communications equipment provider's stock valued at $3,484,000 after acquiring an additional 461,175 shares during the last quarter. QVT Financial LP lifted its holdings in shares of Allot by 12.4% in the fourth quarter. QVT Financial LP now owns 5,062,523 shares of the communications equipment provider's stock valued at $49,765,000 after purchasing an additional 556,730 shares in the last quarter. Lazard Asset Management LLC acquired a new stake in shares of Allot in the first quarter valued at approximately $1,208,000. Greenhaven Road Investment Management L.P. increased its stake in shares of Allot by 12.8% during the 4th quarter. Greenhaven Road Investment Management L.P. now owns 856,991 shares of the communications equipment provider's stock worth $8,424,000 after purchasing an additional 97,348 shares in the last quarter. Finally, Potomac Capital Management Inc. acquired a new stake in Allot during the 4th quarter valued at $3,483,000. Hedge funds and other institutional investors own 51.50% of the company's stock.

Allot Price Performance

Shares of Allot stock opened at $8.43 on Monday. The firm has a market cap of $415.60 million, a price-to-earnings ratio of 38.32 and a beta of 1.48. Allot has a 52-week low of $6.12 and a 52-week high of $11.92. The company's 50-day simple moving average is $7.87 and its 200-day simple moving average is $7.63.

Allot (NASDAQ:ALLT - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The communications equipment provider reported $0.09 EPS for the quarter, beating analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $27.45 million. Equities research analysts anticipate that Allot will post 0.23 EPS for the current year.

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

About Allot

Allot Ltd. is a telecommunications technology company that provides network intelligence, traffic management and cybersecurity solutions to communications service providers. Its software and hardware help operators monitor network traffic, analyze subscriber and application usage, optimize performance and manage service quality across fixed, mobile and broadband networks.

The company's portfolio has included network visibility and analytics tools, policy and traffic-management platforms, and security products designed to help detect and mitigate threats such as distributed denial-of-service attacks.

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