Mitek Systems (NASDAQ:MITK) Trading Down 9.1% - Here's What Happened

Key Points

• Shares fell 9.1% on Friday to about $13.97 (intraday low $13.82) with 365,530 shares traded, roughly 56% below average session volume.
• The company beat Q1 estimates (EPS $0.38 vs. $0.34; revenue $54.84M vs. $52.59M), yet the consensus rating remains a Hold with a $16 target; market cap is ~$639M and the P/E is 40.29.
• COO Garrett Gafke sold 152,529 shares for about $2.12M (cutting his position ~36.5%), while institutional investors own roughly 83.6% of the stock.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report)'s stock price traded down 9.1% during trading on Friday . The company traded as low as $13.82 and last traded at $13.9660. 365,530 shares were traded during mid-day trading, a decline of 56% from the average session volume of 839,604 shares. The stock had previously closed at $15.36.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the stock. Wall Street Zen raised shares of Mitek Systems from a "buy" rating to a "strong-buy" rating in a report on Saturday, February 7th. Weiss Ratings reissued a "hold (c)" rating on shares of Mitek Systems in a report on Friday, March 27th. Northland Securities set a $17.00 price target on shares of Mitek Systems in a report on Wednesday, April 15th. Jefferies Financial Group raised shares of Mitek Systems from a "hold" rating to a "buy" rating and increased their price target for the stock from $11.00 to $15.00 in a report on Friday, February 13th. Finally, Zacks Research lowered shares of Mitek Systems from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 16th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Mitek Systems presently has a consensus rating of "Hold" and a consensus target price of $16.00.

Mitek Systems Trading Down 8.2%

The company has a market cap of $639.19 million, a P/E ratio of 40.29 and a beta of 0.95. The company's fifty day moving average is $14.33 and its 200 day moving average is $11.61.

Mitek Systems (NASDAQ:MITK - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The software maker reported $0.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.04. The business had revenue of $54.84 million for the quarter, compared to analyst estimates of $52.59 million. Mitek Systems had a net margin of 8.67% and a return on equity of 16.86%. Analysts anticipate that Mitek Systems, Inc. will post 0.88 EPS for the current year.

Insider Transactions at Mitek Systems

In other Mitek Systems news, COO Garrett Gafke sold 152,529 shares of the firm's stock in a transaction on Tuesday, April 28th. The shares were sold at an average price of $13.92, for a total value of $2,123,203.68. Following the sale, the chief operating officer owned 265,387 shares of the company's stock, valued at $3,694,187.04. This trade represents a 36.50% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.20% of the stock is currently owned by company insiders.

Institutional Trading of Mitek Systems

Institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its position in Mitek Systems by 5.6% during the third quarter. Vanguard Group Inc. now owns 3,717,031 shares of the software maker's stock valued at $36,315,000 after purchasing an additional 198,068 shares during the period. Invesco Ltd. increased its stake in shares of Mitek Systems by 0.5% in the fourth quarter. Invesco Ltd. now owns 1,919,576 shares of the software maker's stock worth $20,252,000 after purchasing an additional 10,105 shares in the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Mitek Systems by 1.8% in the first quarter. Dimensional Fund Advisors LP now owns 1,685,657 shares of the software maker's stock worth $22,756,000 after purchasing an additional 29,997 shares in the last quarter. Impax Asset Management Group plc increased its stake in shares of Mitek Systems by 8.4% in the fourth quarter. Impax Asset Management Group plc now owns 1,295,000 shares of the software maker's stock worth $13,662,000 after purchasing an additional 100,000 shares in the last quarter. Finally, Geode Capital Management LLC grew its stake in Mitek Systems by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 1,262,658 shares of the software maker's stock valued at $13,323,000 after acquiring an additional 9,921 shares in the last quarter. 83.64% of the stock is currently owned by hedge funds and other institutional investors.

Mitek Systems Company Profile

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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