Alkami Technology CFO sells over $3.1 million in company stock By Investing.com

Alkami Technology, Inc.’s (NASDAQ:ALKT) Chief Financial Officer, W. Bryan Hill, has recently sold a significant amount of company stock, according to the latest SEC filings. The transactions, which occurred on September 23 and 24, 2024, involved the sale of 55,046 and 44,954 shares of common stock, respectively, totaling over $3.1 million.

The sales were executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The prices at which the shares were sold ranged from $30.68 to $31.72, with weighted average prices of $31.1861 and $30.9182 for the respective dates.

In addition to the sales, the SEC filing also reported that Hill acquired shares through the exercise of stock options. These “buy” transactions, which were priced at $2.34 per share, amounted to a total of $234,000. The shares subject to the options were reported to be fully vested and exercisable, as noted in the footnotes of the filing.

Following the reported transactions, the SEC filing indicates that Hill still owns a substantial number of shares in the company. The transactions provide insight into the trading activities of Alkami Technology’s executives and are of interest to investors monitoring insider behavior for signs of company strength and executive confidence.

Alkami Technology, headquartered in Plano, Texas, operates within the prepackaged software industry and specializes in providing cloud-based digital banking solutions. The company’s stock is publicly traded on the NASDAQ exchange under the ticker symbol ALKT.

In other recent news, Alkami Technology, Inc. has priced a secondary offering of 5 million shares. The shares are being sold by affiliates of General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. Alkami will not be selling any shares nor will it gain any proceeds from this offering. The offering is being managed by J.P. Morgan Securities LLC as the sole book-running manager.

In financial news, Alkami reported a 25% increase in revenue for Q2 2024, with an adjusted EBITDA of $4.6 million. The company has also expanded its credit facility.

Analyst firms Craig-Hallum, Lake Street Capital Markets, Needham & Company, and Barclays have all raised their price targets for Alkami, maintaining positive ratings. Alkami has also appointed Prerna Sachdeva as the new principal accounting officer. These are recent developments in the company’s operational and financial progress.

InvestingPro Insights

Alkami Technology, Inc. (NASDAQ:ALKT) has been a topic of interest for investors, particularly following the recent insider stock sales by CFO W. Bryan Hill. As stakeholders analyze these transactions, it’s beneficial to consider some real-time data and insights from InvestingPro that could shed light on the company’s current financial health and market performance.

InvestingPro data highlights that Alkami Technology currently holds a market capitalization of approximately $3.03 billion. Despite not being profitable over the last twelve months, the company has experienced significant revenue growth, reporting a 26.69% increase in the last twelve months as of Q2 2024. This is further supported by a quarterly revenue growth of 24.93% in Q2 2024, indicating a consistent upward trajectory in the company’s earnings.

Moreover, Alkami’s gross profit margin stands impressively at 56.94%, which suggests that the company is effectively managing its cost of goods sold and maintaining a healthy difference between sales and production costs. This financial metric is crucial for investors as it reflects the company’s operational efficiency and potential for profitability.

InvestingPro Tips provide additional context to these figures. Notably, three analysts have recently revised their earnings estimates upwards for the upcoming period, signaling a positive outlook on Alkami’s financial future. Additionally, the company has been highlighted for its strong return over the last three months, with a 16.31% price total return, underscoring a robust short-term performance in the market.

These insights are particularly relevant for investors considering the recent insider trading activities. While the CFO’s sale of shares could be interpreted in various ways, the solid revenue growth and positive analyst revisions suggest that the company’s fundamentals may remain strong. For those interested in a deeper dive into Alkami’s financials, InvestingPro offers a comprehensive list of tips, with 10 additional insights available to help investors make informed decisions.

For a more detailed analysis, including the full list of InvestingPro Tips, visit the InvestingPro platform at: https://www.investing.com/pro/ALKT

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