Short Interest in Mitek Systems, Inc. (NASDAQ:MITK) Expands By 28.9%

Key Points

• Short interest rose 28.9% to 2,906,159 shares as of April 15, representing about 6.6% of shares sold short and a short-interest ratio of 3.6 days.
• COO Garrett Gafke sold 152,529 shares at an average price of $13.92 on April 28, reducing his holding by 36.5%; insiders own 2.20% of the stock.
• Shares traded down 3.2% to $13.61 (market cap ≈ $617M, P/E 38.9); analysts' consensus is a "Hold" with a $16 target and institutions own 83.64% of the company.

Mitek Systems, Inc. (NASDAQ:MITK - Get Free Report) was the recipient of a large growth in short interest in April. As of April 15th, there was short interest totaling 2,906,159 shares, a growth of 28.9% from the March 31st total of 2,254,075 shares. Based on an average daily volume of 806,895 shares, the short-interest ratio is currently 3.6 days. Approximately 6.6% of the shares of the stock are sold short.

Insiders Place Their Bets

In related news, COO Garrett Gafke sold 152,529 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $13.92, for a total value of $2,123,203.68. Following the completion of the transaction, the chief operating officer directly owned 265,387 shares of the company's stock, valued at $3,694,187.04. This trade represents a 36.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Mitek Systems

A number of hedge funds and other institutional investors have recently made changes to their positions in MITK. New York State Teachers Retirement System purchased a new stake in shares of Mitek Systems in the third quarter valued at $39,000. Tower Research Capital LLC TRC grew its position in shares of Mitek Systems by 320.3% in the second quarter. Tower Research Capital LLC TRC now owns 6,018 shares of the software maker's stock valued at $60,000 after purchasing an additional 4,586 shares during the period. State of Alaska Department of Revenue grew its position in shares of Mitek Systems by 305.2% in the fourth quarter. State of Alaska Department of Revenue now owns 8,075 shares of the software maker's stock valued at $85,000 after purchasing an additional 6,082 shares during the period. Russell Investments Group Ltd. grew its position in shares of Mitek Systems by 4,147.9% in the third quarter. Russell Investments Group Ltd. now owns 9,940 shares of the software maker's stock valued at $97,000 after purchasing an additional 9,706 shares during the period. Finally, AXQ Capital LP purchased a new stake in shares of Mitek Systems in the fourth quarter valued at $117,000. Hedge funds and other institutional investors own 83.64% of the company's stock.

Mitek Systems Stock Down 3.2%

Shares of NASDAQ:MITK traded down $0.45 during midday trading on Wednesday, reaching $13.61. The company's stock had a trading volume of 1,150,402 shares, compared to its average volume of 830,339. The firm has a market cap of $616.81 million, a price-to-earnings ratio of 38.89 and a beta of 1.03. Mitek Systems has a 1 year low of $8.07 and a 1 year high of $15.80. The business has a 50 day moving average price of $14.16 and a 200 day moving average price of $11.41.

Mitek Systems (NASDAQ:MITK - Get Free Report) last announced its quarterly earnings data on Thursday, February 5th. The software maker reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.20 by $0.06. The business had revenue of $44.24 million during the quarter, compared to the consensus estimate of $42.44 million. Mitek Systems had a return on equity of 16.86% and a net margin of 8.67%. Sell-side analysts anticipate that Mitek Systems will post 0.88 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. Zacks Research downgraded Mitek Systems from a "strong-buy" rating to a "hold" rating in a research report on Thursday, April 16th. Northland Securities set a $17.00 price target on Mitek Systems in a research report on Wednesday, April 15th. Wall Street Zen raised Mitek Systems from a "buy" rating to a "strong-buy" rating in a research report on Saturday, February 7th. Weiss Ratings reissued a "hold (c)" rating on shares of Mitek Systems in a research report on Friday, March 27th. Finally, Jefferies Financial Group raised Mitek Systems from a "hold" rating to a "buy" rating and raised their price target for the stock from $11.00 to $15.00 in a research report on Friday, February 13th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $16.00.

Mitek Systems Company Profile

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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