Allot (NASDAQ:ALLT) Shares Cross Above 200 Day Moving Average - Here's Why

Key Points

• Allot shares broke above their 200-day moving average, reaching $8.72 and last trading at $8.4620, compared with the average of $7.60.
• Analysts maintain a generally positive outlook: Allot has a consensus “Moderate Buy” rating and a $13.38 target price, despite one “Sell” rating.
• The company exceeded quarterly expectations with EPS of $0.09 versus $0.06 expected and revenue of $27.74 million. Its board also authorized a $40 million share buyback, covering up to 11.7% of outstanding shares.

Allot Ltd. (NASDAQ:ALLT - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Wednesday. The stock has a two hundred day moving average of $7.60 and traded as high as $8.72. Allot shares last traded at $8.4620, with a volume of 227,695 shares traded.

Analyst Ratings Changes

ALLT has been the subject of a number of research reports. Northland Securities set a $17.00 price target on Allot in a report on Thursday, August 13th. Weiss Ratings restated a "sell (d+)" rating on shares of Allot in a report on Tuesday, September 22nd. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Allot currently has a consensus rating of "Moderate Buy" and a consensus target price of $13.38.

Allot Stock Up 0.3%

The stock's 50 day moving average is $7.84 and its two-hundred day moving average is $7.60. The company has a market capitalization of $417.18 million, a PE ratio of 38.47 and a beta of 1.50.

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

Allot declared that its board has initiated a share buyback plan on Tuesday, June 23rd that allows the company to buyback $40.00 million in outstanding shares. This buyback authorization allows the communications equipment provider to purchase up to 11.7% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board believes its shares are undervalued.

Insider Activity at Allot

In related news, SVP Boaz Grossman sold 6,000 shares of Allot stock in a transaction that occurred 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 transaction, the senior vice president directly owned 186,000 shares of the company's stock, valued at $1,385,700. This trade represents a 3.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Gili Groner sold 26,666 shares of the business's stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $7.86, for a total transaction of $209,594.76. Following the completion of the transaction, the insider directly owned 59,467 shares of the company's stock, valued at $467,410.62. This trade represents a 30.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 66,333 shares of company stock valued at $512,240 over the last ninety days. 3.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ALLT. QVT Financial LP boosted its position in Allot by 12.4% during the fourth quarter. QVT Financial LP now owns 5,062,523 shares of the communications equipment provider's stock valued at $49,765,000 after purchasing an additional 556,730 shares in the last quarter. Kanen Wealth Management LLC grew its stake 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 valued at $30,994,000 after purchasing an additional 51,029 shares during the last quarter. Greenhaven Road Investment Management L.P. raised its holdings in Allot by 12.8% in the fourth quarter. Greenhaven Road Investment Management L.P. now owns 856,991 shares of the communications equipment provider's stock worth $8,424,000 after purchasing an additional 97,348 shares in the last quarter. Sei Investments Co. raised its holdings in Allot by 744.0% in the first quarter. Sei Investments Co. now owns 523,162 shares of the communications equipment provider's stock worth $3,484,000 after purchasing an additional 461,175 shares in the last quarter. Finally, Potomac Capital Management Inc. purchased a new stake in shares of Allot during the fourth quarter valued at about $3,483,000. 51.50% of the stock is owned by institutional investors.

About Allot

Allot Ltd., formerly known as Allot Communications, develops network intelligence, traffic management and cybersecurity solutions for communications service providers. Its technologies help telecommunications operators monitor and analyze network traffic, optimize performance, manage bandwidth and support the delivery of digital services.

The company's product portfolio has included solutions for network visibility, subscriber and application analytics, broadband traffic management, policy enforcement, parental controls and network security.

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