Mitek Systems (NASDAQ:MITK) Posts Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Mitek Systems beat quarterly expectations, reporting EPS of $0.34 versus the $0.28 consensus and revenue of $54.04 million versus estimates of $50.82 million. Net margin was 8.74%, while return on equity reached 16.74%.
• Shares fell $0.32 to $16.81 after the results, with the stock trading between a 52-week range of $8.53 to $21.05. Mitek has a market capitalization of approximately $759 million and a price-to-earnings ratio of 48.03.
• Analysts maintain a generally cautious outlook, with one Buy rating and two Hold ratings, producing an average rating of Hold and an average price target of $16.00. Institutional investors own 83.64% of the company, while an executive recently sold shares.

Mitek Systems (NASDAQ:MITK - Get Free Report) issued its earnings results on Thursday. The software maker reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.06, FiscalAI reports. The firm had revenue of $54.04 million during the quarter, compared to analysts' expectations of $50.82 million. Mitek Systems had a net margin of 8.74% and a return on equity of 16.74%.

Mitek Systems Price Performance

Shares of NASDAQ MITK traded down $0.32 during trading on Thursday, hitting $16.81. The company had a trading volume of 502,521 shares, compared to its average volume of 925,245. The stock has a fifty day simple moving average of $17.69 and a two-hundred day simple moving average of $14.99. Mitek Systems has a fifty-two week low of $8.53 and a fifty-two week high of $21.05. The firm has a market capitalization of $759.14 million, a price-to-earnings ratio of 48.03 and a beta of 0.98. The company has a quick ratio of 2.61, a current ratio of 2.61 and a debt-to-equity ratio of 0.20.

Insiders Place Their Bets

In related news, COO Garrett Gafke sold 21,108 shares of Mitek Systems stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $14.19, for a total value of $299,522.52. Following the sale, the chief operating officer directly owned 244,279 shares in the company, valued at approximately $3,466,319.01. The trade was a 7.95% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Tower Research Capital LLC TRC lifted its position in Mitek Systems by 320.3% during the second quarter. Tower Research Capital LLC TRC now owns 6,018 shares of the software maker's stock worth $60,000 after buying an additional 4,586 shares in the last quarter. Russell Investments Group Ltd. raised its holdings in shares of Mitek Systems by 4,147.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 9,940 shares of the software maker's stock worth $97,000 after acquiring an additional 9,706 shares during the period. Bayesian Capital Management LP purchased a new stake in shares of Mitek Systems in the second quarter valued at about $136,000. Verition Fund Management LLC acquired a new stake in Mitek Systems during the third quarter worth about $141,000. Finally, Virtu Financial LLC purchased a new position in Mitek Systems during the fourth quarter worth about $146,000. Hedge funds and other institutional investors own 83.64% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on MITK shares. Weiss Ratings upgraded Mitek Systems from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday, May 11th. Wall Street Zen cut shares of Mitek Systems from a "strong-buy" rating to a "buy" rating in a research note on Saturday, May 9th. Northland Securities set a $17.00 price target on shares of Mitek Systems in a report on Wednesday, April 15th. Finally, Zacks Research lowered shares of Mitek Systems from a "strong-buy" rating to a "hold" rating in a research report on Thursday, April 16th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $16.00.

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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