Alkami Technology (NASDAQ:ALKT) Trading 5.9% Higher - Is It Still a Buy?

The shares of Alkami Technology, Inc. (NASDAQ:ALKT) experienced a notable increase of 5.9% on Friday. The stock reached a peak price of $30.77 before settling at $30.67. On that trading day, around 742,288 shares changed hands, marking a 25% rise compared to the average daily volume of 591,715 shares. The stock had closed at $28.96 in the previous session.

Analysts Update Price Targets

Several research analysts have recently shared their insights about Alkami Technology. Needham & Company LLC raised their target price from $43.00 to $54.00 and assigned a "buy" rating on October 31st. Likewise, Craig Hallum elevated their price objective from $38.00 to $45.00 with a "buy" rating on the same day. JPMorgan Chase & Co. adjusted their target price for Alkami's shares from $42.00 to $45.00, categorizing it as "overweight" on December 9th. Barclays increased their price target from $35.00 to $41.00 while also giving the company an "equal weight" rating on October 31st. The Goldman Sachs Group modified their price objective from $34.00 to $39.00, providing a "neutral" rating on November 1st. Overall, two analysts rated the stock with a hold rating while six issued buy ratings. According to data from MarketBeat.com, the average rating for the stock is "Moderate Buy", with a median target price of $43.00.

Alkami Technology Stock Performance

The company's financial metrics indicate a debt-to-equity ratio of 0.05, and both quick and current ratios stand at 3.52, highlighting strong liquidity. Alkami Technology boasts a market capitalization of $3.10 billion, although it has a negative PE ratio of 65.62 and a beta of 0.47. Over the past few weeks, the stock's average prices have hovered around $34.85 for 50 days and $34.99 for 200 days.

In their last quarterly earnings report on February 27th, Alkami Technology reported earnings per share of ($0.05), which fell short of the consensus estimate of $0.08 by $0.13. The company had a net margin of -14.55% and a negative return on equity of -11.31%. Revenue for the quarter was $89.66 million, compared to the consensus estimate of $89.63 million. Analysts predict Alkami Technology will have an EPS of -0.34 for the current fiscal year.

Insider Trading Activity

Recent insider transactions revealed that CFO W. Bryan Hill sold 100,000 shares of the company's stock on January 13th at an average price of $33.43, resulting in a total transaction of $3,343,000. Following this sale, Hill currently holds 353,841 shares valued at approximately $11.83 million, reflecting a 22.03% decrease in their holdings. Another insider, Stephen Bohanon, sold 15,491 shares on December 3rd at an average price of $38.37, totaling around $594,389.67. Bohanon now owns 358,204 shares valued at around $13.74 million, representing a 4.15% decrease in their stake. Collectively, insiders sold 283,298 shares worth $10.6 million in the last quarter, and they currently hold 25.90% of the stock.

Hedge Funds Invest in Alkami Technology

Numerous hedge funds and other institutional investors have recently adjusted their positions in Alkami Technology. Essex Investment Management Co. LLC took a new stake in the company during the fourth quarter valued at $34,000. Advisors Asset Management Inc. boosted its holdings by 117.9% during the third quarter, now owning 1,166 shares valued at $37,000. Blue Trust Inc. grew its ownership by an incredible 507.0%, holding 1,214 shares worth $38,000 after acquiring an additional 1,014 shares. Additionally, Quarry LP invested in a new stake estimated at $61,000 in the fourth quarter, while Covestor Ltd increased its position by 6,300.0% to 2,688 shares worth $85,000. Institutional investors currently own approximately 54.97% of Alkami Technology stock.

About Alkami Technology

Alkami Technology, Inc. specializes in cloud-based digital banking solutions within the United States. Their Alkami Platform enables financial institutions to onboard new users effectively, increase revenue, and improve operational efficiency, all supported by unique cloud-based architecture.

Conclusion: Should You Invest in Alkami Technology?

As Alkami Technology continues to attract positive analyst ratings and experiences substantial trading activity, potential investors may be left wondering if it is still a suitable addition to their portfolios. MarketBeat data indicates that while the stock holds a "Moderate Buy" rating among analysts, other top-rated stocks might warrant more immediate attention.

Overall, Alkami Technology demonstrates growth potential alongside some inherent risks, making it a point of interest for investors considering new opportunities in the market.

Alkami, Investing, Trading