Allot (NASDAQ:ALLT) Stock Price Breaks Above 200 Day Moving Average - Here's Why

Key Points

• Allot shares rose 4.4% and broke above their 200-day moving average of $7.70, reaching as high as $9.23 before closing at $8.76.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $13.38; four analysts rate the stock Buy, while one rates it Hold and one Sell.
• The company exceeded quarterly earnings and revenue expectations and authorized a $40 million share buyback, covering up to 11.7% of outstanding shares, although insiders sold 66,333 shares over the past three months.

Allot Ltd. (NASDAQ:ALLT - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $7.70 and traded as high as $9.23. Allot shares last traded at $8.76, with a volume of 1,133,893 shares traded.

Analyst Ratings Changes

ALLT has been the topic of several analyst reports. Northland Securities set a $17.00 price objective on Allot in a research note on Thursday, August 13th. Weiss Ratings reissued a "sell (d+)" rating on shares of Allot in a research note on Tuesday, September 22nd. Four investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $13.38.

Allot Trading Up 4.4%

The firm has a fifty day simple moving average of $7.96 and a 200-day simple moving average of $7.70. The stock has a market cap of $431.87 million, a price-to-earnings ratio of 39.82 and a beta of 1.48.

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

Allot announced that its Board of Directors has approved a share buyback program on Tuesday, June 23rd that permits the company to repurchase $40.00 million in shares. This repurchase authorization permits the communications equipment provider to reacquire up to 11.7% of its shares through open market purchases. Stock repurchase programs are typically a sign that the company's management believes its shares are undervalued.

Insiders Place Their Bets

In other Allot news, SVP Boaz Grossman sold 4,000 shares of the company's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $7.80, for a total transaction of $31,200.00. Following the transaction, the senior vice president directly owned 182,000 shares in the company, valued at approximately $1,419,600. This represents a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Gili Groner sold 26,666 shares of the company's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $7.86, for a total transaction of $209,594.76. Following the transaction, the insider owned 59,467 shares in the company, valued at approximately $467,410.62. The trade was a 30.96% decrease in their ownership of the stock. 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. In the last three months, insiders sold 66,333 shares of company stock valued at $512,240. 3.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Allot

A number of hedge funds and other institutional investors have recently bought and sold shares of ALLT. Sei Investments Co. grew its holdings in Allot by 744.0% during the 1st quarter. Sei Investments Co. now owns 523,162 shares of the communications equipment provider's stock worth $3,484,000 after acquiring an additional 461,175 shares during the period. Lazard Asset Management LLC bought a new stake in shares of Allot during the 1st quarter valued at $1,208,000. QVT Financial LP raised its position in shares of Allot by 12.4% during the 4th quarter. QVT Financial LP now owns 5,062,523 shares of the communications equipment provider's stock valued at $49,765,000 after acquiring an additional 556,730 shares during the last quarter. Squarepoint Ops LLC lifted its stake in shares of Allot by 36.0% in 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 during the period. Finally, Hennion & Walsh Asset Management Inc. lifted its stake in shares of Allot by 24.4% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 96,833 shares of the communications equipment provider's stock valued at $857,000 after purchasing an additional 19,013 shares during the period. 51.50% of the stock is owned by institutional investors.

About Allot

Allot Ltd. is a telecommunications technology company that provides network intelligence, traffic management and cybersecurity solutions to communications service providers. Its software and hardware help operators monitor network traffic, analyze subscriber and application usage, optimize performance and manage service quality across fixed, mobile and broadband networks.

The company's portfolio has included network visibility and analytics tools, policy and traffic-management platforms, and security products designed to help detect and mitigate threats such as distributed denial-of-service attacks.

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