Allot (NASDAQ:ALLT) Share Price Crosses Above 200 Day Moving Average - Time to Sell?

Key Points

• Allot shares crossed above their 200-day moving average, reaching $7.85 before last trading at $7.71, compared with the $7.54 average.
• Analyst sentiment is broadly positive: four analysts rate the stock Buy, one rates it Hold, and one rates it Sell. The consensus is “Moderate Buy” with an average price target of $13.38.
• Allot exceeded quarterly expectations with $0.09 EPS versus $0.06 forecast and $27.74 million in revenue. The board also approved a $40 million share buyback, while insiders sold 68,333 shares during the last quarter.

Allot Ltd. (NASDAQ:ALLT - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $7.54 and traded as high as $7.85. Allot shares last traded at $7.71, with a volume of 234,469 shares traded.

Wall Street Analyst Weigh In

ALLT has been the subject of several recent research reports. Cantor Fitzgerald restated an "overweight" rating and issued a $15.00 price target on shares of Allot in a research report on Wednesday, May 13th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Allot in a report on Friday, June 26th. Wall Street Zen raised shares of Allot from a "hold" rating to a "buy" rating in a research note on Saturday, May 16th. Northland Securities set a $17.00 price objective on Allot in a report on Thursday, August 13th. Finally, Needham & Company LLC raised their target price on Allot from $8.50 to $10.50 and gave the stock a "buy" rating in a research report on Wednesday, May 13th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Allot currently has a consensus rating of "Moderate Buy" and an average target price of $13.38.

Allot Price Performance

The firm has a market capitalization of $375.05 million, a P/E ratio of 35.05 and a beta of 1.50. The company has a fifty day moving average of $7.91 and a 200 day moving average of $7.54.

Allot (NASDAQ:ALLT - Get Free Report) last released its quarterly earnings results on Thursday, August 13th. The communications equipment provider reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.03. The firm had revenue of $27.74 million during the quarter, compared to analyst estimates of $27.45 million. Allot had a net margin of 9.40% and a return on equity of 9.64%. On average, sell-side analysts forecast that Allot Ltd. will post 0.23 EPS for the current year.

Allot announced that its board has authorized a stock buyback program on Tuesday, June 23rd that permits the company to buyback $40.00 million in shares. This buyback authorization permits the communications equipment provider to repurchase up to 11.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In related news, CEO Eyal Harari sold 29,111 shares of the business's stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $7.64, for a total value of $222,408.04. Following the transaction, the chief executive officer owned 1,099,118 shares in the company, valued at $8,397,261.52. The trade was a 2.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Boaz Grossman sold 6,000 shares of the business's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $7.45, for a total transaction of $44,700.00. Following the completion of the transaction, the senior vice president owned 186,000 shares in the company, valued at approximately $1,385,700. The trade was a 3.12% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 68,333 shares of company stock valued at $527,240 over the last quarter. Insiders own 3.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Squarepoint Ops LLC boosted its position in shares of Allot by 36.0% during the 2nd quarter. Squarepoint Ops LLC now owns 14,775 shares of the communications equipment provider's stock valued at $131,000 after purchasing an additional 3,908 shares in the last quarter. Hennion & Walsh Asset Management Inc. grew its stake in Allot by 24.4% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 96,833 shares of the communications equipment provider's stock worth $857,000 after purchasing an additional 19,013 shares during the period. Kanen Wealth Management LLC increased its holdings in Allot by 1.1% in the first quarter. Kanen Wealth Management LLC now owns 4,653,697 shares of the communications equipment provider's stock worth $30,994,000 after purchasing an additional 51,029 shares in the last quarter. Lazard Asset Management LLC bought a new stake in Allot in the first quarter worth approximately $1,208,000. Finally, Sei Investments Co. lifted its stake in Allot by 744.0% in the first quarter. Sei Investments Co. now owns 523,162 shares of the communications equipment provider's stock valued at $3,484,000 after buying an additional 461,175 shares during the period. 51.50% of the stock is owned by institutional investors and hedge funds.

About Allot

Allot Ltd. is a provider of network intelligence and security solutions designed for service providers and enterprises worldwide. The company delivers software and cloud-based services that enable customers to gain real-time visibility into network traffic, enforce security policies and optimize bandwidth usage. Its platforms support a wide range of applications, from DDoS protection and threat prevention to subscriber experience management and network analytics.

Allot's product portfolio includes managed solutions for mobile and fixed-line operators, as well as cloud-native services that can be deployed across private, public and hybrid environments.

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