Mitek Systems (NASDAQ:MITK) Trading Down 5.9% - Here's Why

Key Points

• Mitek Systems shares fell 5.9% to $14.175 on Thursday, trading as low as $14.22 on volume of 486,861 shares (about 38% below the average session volume) after closing at $15.07 the prior day.
• A string of upgrades from firms including Wall Street Zen, Jefferies and Zacks has left the stock with an average analyst rating of "Buy" and a consensus price target of $16.00.
• Mitek beat quarterly expectations with $0.26 EPS vs. $0.20 expected and $44.24M in revenue vs. $42.44M expected, and institutional investors now own roughly 83.6% of the company with several funds increasing positions recently.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report) dropped 5.9% during trading on Thursday . The company traded as low as $14.22 and last traded at $14.1750. 486,861 shares traded hands during trading, a decline of 38% from the average session volume of 789,585 shares. The stock had previously closed at $15.07.

Analysts Set New Price Targets

A number of brokerages have commented on MITK. Wall Street Zen upgraded shares of Mitek Systems from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 7th. Northland Securities set a $17.00 price target on Mitek Systems in a report on Wednesday. Jefferies Financial Group upgraded Mitek Systems from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $11.00 to $15.00 in a report on Friday, February 13th. Weiss Ratings reiterated a "hold (c)" rating on shares of Mitek Systems in a research note on Friday, March 27th. Finally, Zacks Research upgraded shares of Mitek Systems from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, March 18th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus price target of $16.00.

Mitek Systems Price Performance

The stock has a market cap of $636.96 million, a P/E ratio of 39.84 and a beta of 1.03. The stock's fifty day simple moving average is $13.71 and its 200-day simple moving average is $11.09.

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

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC lifted its holdings in Mitek Systems by 138.3% in the first quarter. AQR Capital Management LLC now owns 111,967 shares of the software maker's stock worth $924,000 after purchasing an additional 64,980 shares during the period. Creative Planning raised its position in shares of Mitek Systems by 87.6% during the 2nd quarter. Creative Planning now owns 30,133 shares of the software maker's stock worth $298,000 after buying an additional 14,070 shares in the last quarter. Rhumbline Advisers raised its position in shares of Mitek Systems by 39.2% during the 2nd quarter. Rhumbline Advisers now owns 91,877 shares of the software maker's stock worth $910,000 after buying an additional 25,878 shares in the last quarter. American Century Companies Inc. lifted its stake in shares of Mitek Systems by 49.7% in the 2nd quarter. American Century Companies Inc. now owns 69,871 shares of the software maker's stock worth $692,000 after acquiring an additional 23,212 shares during the period. Finally, XTX Topco Ltd bought a new position in shares of Mitek Systems in the second quarter valued at approximately $153,000. Institutional investors and hedge funds own 83.64% of the company's stock.

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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