Douglas A. Linebarger, the Chief Legal Officer of Alkami Technology Inc. (NASDAQ:ALKT), has recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Linebarger sold a total of 7,960 shares over three days, from November 8 to November 12, 2024. The shares were sold at prices ranging from $38.00 to $38.0176 per share, amounting to a total sale value of $302,584.
The transactions involved multiple sales, with 502 shares sold on November 8, 2,219 shares on November 11, and 5,239 shares on November 12. Following these sales, Linebarger retains direct ownership of 248,585 shares.
In addition to the sales, Linebarger exercised stock options on the same dates, acquiring a total of 7,960 shares at an exercise price of $15.46 per share. This transaction type, however, is not reflected in the total sale value.
These actions are part of a series of transactions reported in the SEC Form 4 filing, which provides transparency to investors regarding insider activities.
In other recent news, Alkami Technology has initiated a secondary offering of 7.5 million shares, with the proceeds going entirely to the selling stockholders, including entities affiliated with General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. This development follows the company's strong Q3 financial performance, which saw a significant 27% increase in revenue to $85.9 million and an adjusted EBITDA of $8.3 million. The company's annual recurring revenue (ARR) also grew by 24% to $342 million.
In response to these recent developments, KeyBanc Capital Markets has raised its price target for Alkami Technology to $45 while maintaining an Overweight rating. Alkami Technology has also reported nine new digital banking wins and secured 14 renewals, indicating strong demand for its services. Looking ahead, the company forecasts Q4 2024 revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million.
Furthermore, despite a favorable environment for mergers and acquisitions, Alkami Technology has not made any recent acquisitions. However, the company's data technology is increasingly seen as a market differentiator, with over 70% of new client wins in 2024 incorporating data and marketing products.
InvestingPro Insights
Alkami Technology Inc. (NASDAQ:ALKT) has been experiencing significant growth and market attention, as reflected in both its financial metrics and stock performance. According to InvestingPro data, the company's revenue growth stands at an impressive 26.73% over the last twelve months as of Q3 2023, with a quarterly growth rate of 26.89% in Q3 2023. This robust growth trajectory aligns with the recent insider activity, potentially signaling confidence in the company's future prospects.
The stock's performance has been particularly strong, with a 77.53% price total return over the past year and a 47.86% return over the last six months. This upward momentum is further supported by an InvestingPro Tip indicating that 6 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Alkami's financial performance.
Despite the company not being profitable over the last twelve months, with an operating income margin of -15.48%, analysts predict that Alkami will turn profitable this year. This optimism is reflected in the stock's valuation, with a high Price / Book multiple of 11.22, indicating that investors are willing to pay a premium for the company's growth potential.
For investors seeking more comprehensive analysis, InvestingPro offers additional insights with 11 more tips available for Alkami Technology Inc., providing a deeper understanding of the company's financial health and market position.
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