Mitek Systems (NASDAQ:MITK) Shares Gap Up - Here's What Happened

Key Points

• Mitek Systems shares jumped at the open, rising from a prior close of $15.79 to $16.96 before trading at $16.5950.
• Analyst sentiment remains mixed: Zacks Research downgraded the stock to “hold,” while Wall Street Zen upgraded it to “strong-buy.” The overall consensus rating is “Hold,” with an average price target of $19.33.
• Mitek exceeded quarterly expectations, reporting earnings of $0.34 per share versus estimates of $0.28 and revenue of $54.04 million versus $50.82 million expected. Institutional investors and hedge funds own 83.64% of the company.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report) shares gapped up prior to trading on Friday. The stock had previously closed at $15.79, but opened at $16.96. Mitek Systems shares last traded at $16.5950, with a volume of 26,219 shares.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on MITK. Zacks Research downgraded Mitek Systems from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 6th. Wall Street Zen raised shares of Mitek Systems from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 8th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Mitek Systems in a research note on Friday, August 7th. Finally, Maxim Group set a $26.00 price objective on Mitek Systems in a research note on Friday, August 7th. One investment analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Mitek Systems has an average rating of "Hold" and an average price target of $19.33.

Mitek Systems Price Performance

The company has a current ratio of 2.74, a quick ratio of 2.74 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $748.57 million, a P/E ratio of 35.38 and a beta of 0.94. The business has a fifty day simple moving average of $17.85 and a 200 day simple moving average of $16.83.

Mitek Systems (NASDAQ:MITK - Get Free Report) last announced its earnings results on Thursday, August 6th. The software maker reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.06. The business had revenue of $54.04 million during the quarter, compared to analyst estimates of $50.82 million. Mitek Systems had a net margin of 11.39% and a return on equity of 19.16%. On average, analysts expect that Mitek Systems, Inc. will post 0.91 earnings per share for the current year.

Hedge Funds Weigh In On Mitek Systems

Several hedge funds have recently made changes to their positions in the company. Integrated Wealth Concepts LLC acquired a new stake in shares of Mitek Systems in the second quarter valued at about $42,000. State of Alaska Department of Revenue lifted its position in shares of Mitek Systems by 8.3% during the 3rd quarter. State of Alaska Department of Revenue now owns 8,744 shares of the software maker's stock worth $148,000 after buying an additional 669 shares during the last quarter. SummitTX Capital L.P. acquired a new position in Mitek Systems in the first quarter valued at $140,000. Abel Hall LLC purchased a new position in Mitek Systems during the first quarter worth about $176,000. Finally, Bank of Nova Scotia acquired a new position in Mitek Systems during the first quarter worth about $299,000. 83.64% of the stock is owned by institutional investors and hedge funds.

About Mitek Systems

Mitek Systems, Inc develops software for digital identity verification, fraud prevention and mobile banking. Its technology enables organizations to capture, authenticate and process information from checks, identity documents and other sources through smartphones and digital channels.

The company's products include Mobile Deposit, which allows consumers to deposit checks remotely, as well as identity-verification and document-authentication solutions designed to support account opening, customer onboarding and ongoing access to digital services.

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