Mitek Systems (NASDAQ:MITK) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Mitek Systems beat quarterly expectations: EPS came in at $0.34 versus the $0.28 consensus estimate, while revenue reached $54.04 million compared with expectations of $50.82 million.
• The stock initially gapped up from $16.81 to $20.50 after the earnings release, but later traded near $17.96. Analysts maintain a consensus “Hold” rating with an average price target of $16.00.
• Institutional investors own 83.64% of the company, while COO Garrett Gafke sold 21,108 shares at an average price of $14.19, reducing his position by 7.95%.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $16.81, but opened at $20.50. Mitek Systems shares last traded at $17.9560, with a volume of 198,189 shares trading hands.

The software maker reported $0.34 EPS for the quarter, topping the consensus estimate of $0.28 by $0.06. The business had revenue of $54.04 million during the quarter, compared to the consensus estimate of $50.82 million. Mitek Systems had a net margin of 8.74% and a return on equity of 16.74%.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on MITK. Zacks Research lowered shares of Mitek Systems from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 16th. Weiss Ratings raised shares of Mitek Systems from a "hold (c)" rating to a "hold (c+)" rating in a report on Monday, May 11th. Wall Street Zen lowered shares of Mitek Systems from a "strong-buy" rating to a "buy" rating in a research report on Saturday, May 9th. Finally, Northland Securities set a $17.00 price objective on shares of Mitek Systems in a report on Wednesday, April 15th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $16.00.

Insiders Place Their Bets

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

Institutional Trading of Mitek Systems

Hedge funds and other institutional investors have recently modified their holdings of the stock. Mak Capital One LLC purchased a new stake in shares of Mitek Systems in the fourth quarter valued at $6,690,000. Topline Capital Management LLC purchased a new stake in Mitek Systems during the 2nd quarter worth about $5,235,000. Congruence Capital LLC acquired a new position in Mitek Systems in the 4th quarter valued at about $4,106,000. Bank of New York Mellon Corp acquired a new position in Mitek Systems in the 2nd quarter valued at about $5,322,000. Finally, Tudor Investment Corp ET AL lifted its holdings in Mitek Systems by 1,026.3% in the 3rd quarter. Tudor Investment Corp ET AL now owns 230,848 shares of the software maker's stock valued at $2,255,000 after purchasing an additional 210,352 shares in the last quarter. 83.64% of the stock is owned by institutional investors and hedge funds.

Mitek Systems Stock Performance

The company has a market capitalization of $794.80 million, a PE ratio of 50.44 and a beta of 0.98. The stock's fifty day simple moving average is $17.69 and its 200-day simple moving average is $15.03. The company has a debt-to-equity ratio of 0.20, a quick ratio of 2.61 and a current ratio of 2.61.

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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