Mitek Systems, Inc. (NASDAQ:MITK) Sees Large Increase in Short Interest

Key Points

• Short interest rose 20.1% in February to 2,292,265 shares (about 5.2% of shares sold short), yielding a short-interest ratio of 2.1 days based on average volume.
• Analysts have turned more positive: Wall Street Zen upgraded to strong‑buy and Jefferies raised its rating to buy and lifted its target to $15, leaving a MarketBeat consensus of "Moderate Buy" with an average target of $15.
• Several hedge funds added positions and institutional ownership is about 83.64%; Mitek also beat the quarter (EPS $0.26 vs $0.20, revenue $44.24M vs $42.44M) and the stock traded at $14.38 with a market cap of $651.7M and a P/E of 41.09.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report) was the target of a significant growth in short interest during the month of February. As of February 27th, there was short interest totaling 2,292,265 shares, a growth of 20.1% from the February 12th total of 1,908,633 shares. Based on an average trading volume of 1,081,510 shares, the short-interest ratio is currently 2.1 days. Approximately 5.2% of the company's shares are sold short. Approximately 5.2% of the company's shares are sold short. Based on an average trading volume of 1,081,510 shares, the short-interest ratio is currently 2.1 days.

Analyst Ratings Changes

Several brokerages recently issued reports on MITK. Wall Street Zen upgraded Mitek Systems from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 7th. Jefferies Financial Group raised Mitek Systems from a "hold" rating to a "buy" rating and lifted their target price for the stock from $11.00 to $15.00 in a research report on Friday, February 13th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Mitek Systems in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Mitek Systems presently has an average rating of "Moderate Buy" and an average target price of $15.00.

Institutional Investors Weigh In On Mitek Systems

A number of hedge funds have recently added to or reduced their stakes in the stock. Mak Capital One LLC bought a new position in shares of Mitek Systems during the fourth quarter worth about $6,690,000. Topline Capital Management LLC bought a new stake in Mitek Systems in the 2nd quarter valued at about $5,235,000. Congruence Capital LLC acquired a new position in Mitek Systems during the 4th quarter valued at about $4,106,000. Impax Asset Management Group plc grew its position in Mitek Systems by 40.6% in the 3rd quarter. Impax Asset Management Group plc now owns 1,195,000 shares of the software maker's stock worth $11,675,000 after purchasing an additional 345,000 shares during the last quarter. Finally, Marshall Wace LLP increased its stake in shares of Mitek Systems by 25.1% in the second quarter. Marshall Wace LLP now owns 1,352,786 shares of the software maker's stock valued at $13,393,000 after purchasing an additional 271,498 shares during the period. 83.64% of the stock is currently owned by institutional investors.

Mitek Systems Trading Up 2.4%

MITK traded up $0.34 on Tuesday, hitting $14.38. 755,724 shares of the company's stock were exchanged, compared to its average volume of 1,013,480. The stock has a fifty day moving average of $12.16 and a two-hundred day moving average of $10.51. Mitek Systems has a twelve month low of $6.93 and a twelve month high of $15.61. The firm has a market cap of $651.70 million, a PE ratio of 41.09 and a beta of 0.99.

Mitek Systems (NASDAQ:MITK - Get Free Report) last posted its earnings results on Thursday, February 5th. The software maker reported $0.26 EPS for the quarter, beating the consensus estimate of $0.20 by $0.06. The company had revenue of $44.24 million during the quarter, compared to analyst estimates of $42.44 million. Mitek Systems had a return on equity of 16.86% and a net margin of 8.67%. On average, analysts predict that Mitek Systems will post 0.59 EPS for the current year.

About Mitek Systems

Mitek Systems, Inc NASDAQ: MITK is a software company specializing in mobile capture and digital identity verification solutions. Headquartered in San Diego, California, Mitek develops and licenses patented technology that enables organizations to securely capture, authenticate and process identity documents, checks and other physical media using smartphones and other digital devices. Its platforms leverage advanced image processing, machine learning and biometrics to streamline customer onboarding and prevent fraud in real time.

The company's core offerings include mobile check deposit and deposit automation tools for financial institutions, as well as identity verification and authentication services for banks, fintechs, insurers and government agencies.

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