Mitek Systems Sees Unusually High Options Volume (NASDAQ:MITK)

Key Points

• Unusually high options activity: investors bought 3,686 call options on Tuesday, a 309% increase versus the typical volume of 901 calls, signaling elevated bullish interest.
• Analyst sentiment has turned positive—Jefferies upgraded to a Buy and raised its target to $15, and MarketBeat shows a consensus rating of Buy with a consensus target price of $15.00.
• Mitek recently beat quarterly estimates (EPS $0.26 vs $0.20; revenue $44.24M vs $42.44M), its shares traded at $14.55, and roughly 83.6% of the stock is owned by institutional investors.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report) saw some unusual options trading on Tuesday. Stock investors bought 3,686 call options on the stock. This represents an increase of 309% compared to the typical volume of 901 call options.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on MITK. Jefferies Financial Group upgraded Mitek Systems from a "hold" rating to a "buy" rating and increased their target price for the stock from $11.00 to $15.00 in a report on Friday, February 13th. Weiss Ratings restated a "hold (c)" rating on shares of Mitek Systems in a report on Friday, March 27th. Wall Street Zen upgraded Mitek Systems from a "buy" rating to a "strong-buy" rating in a research note on Saturday, February 7th. Finally, Zacks Research raised Mitek Systems from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, March 18th. One equities research 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 stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $15.00.

Mitek Systems Stock Performance

Shares of Mitek Systems stock traded up $0.48 during mid-day trading on Tuesday, hitting $14.55. 558,357 shares of the stock were exchanged, compared to its average volume of 787,411. The company has a market capitalization of $659.45 million, a P/E ratio of 41.68 and a beta of 1.03. The company has a 50-day simple moving average of $13.51 and a 200 day simple moving average of $11.03. Mitek Systems has a 12 month low of $7.54 and a 12 month high of $15.61.

Mitek Systems (NASDAQ:MITK - Get Free Report) last announced its quarterly earnings data 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. Mitek Systems had a return on equity of 16.86% and a net margin of 8.67%.The firm had revenue of $44.24 million during the quarter, compared to the consensus estimate of $42.44 million. Analysts predict that Mitek Systems will post 0.59 EPS for the current year.

Institutional Investors Weigh In On Mitek Systems

Several institutional investors have recently added to or reduced their stakes in MITK. New York State Teachers Retirement System purchased a new stake in shares of Mitek Systems during the 3rd quarter valued at approximately $39,000. Tower Research Capital LLC TRC raised its holdings in Mitek Systems by 320.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,018 shares of the software maker's stock valued at $60,000 after acquiring an additional 4,586 shares during the period. State of Alaska Department of Revenue raised its holdings in Mitek Systems by 305.2% during the 4th quarter. State of Alaska Department of Revenue now owns 8,075 shares of the software maker's stock valued at $85,000 after acquiring an additional 6,082 shares during the period. Russell Investments Group Ltd. lifted its position in shares of Mitek Systems by 4,147.9% during the third 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 in the last quarter. Finally, AXQ Capital LP purchased a new stake in shares of Mitek Systems during the fourth quarter worth $117,000. 83.64% of the stock is owned by hedge funds and other institutional investors.

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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