Plano, Texas-based Alkami Technology, Inc. (NASDAQ:ALKT) recently reported that its Chief Financial Officer, W. Bryan Hill, sold a significant amount of company stock. According to a filing with the Securities and Exchange Commission, Hill sold 99,755 shares of common stock on November 25, 2024. The shares were sold at a weighted average price of $41.8929, generating a total of approximately $4.18 million.
The sale was executed in multiple transactions with prices ranging from $41.845 to $42.28 per share. Following this transaction, Hill retains ownership of 371,648 shares directly.
In other recent news, Alkami Technology announced a secondary offering of 7.5 million shares, sold by entities affiliated with General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. The company, however, will not be selling any shares or receiving any proceeds from this offering. The offering follows Alkami's strong Q3 financial performance, which surpassed both Wall Street and its own expectations with a significant 27% increase in revenue to $85.9 million and an adjusted EBITDA of $8.3 million. Following these developments, KeyBanc Capital Markets upgraded its price target for Alkami to $45.
Alkami also reported nine new digital banking wins and 14 renewals, indicating robust demand for its services. The company's implementation backlog now includes 36 clients, accounting for 1.3 million users. Alkami forecasts Q4 2024 revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million. Despite a favorable environment for mergers and acquisitions, Alkami has not made any recent acquisitions. However, over 70% of new client wins in 2024 incorporated Alkami's data and marketing products, highlighting the company's differentiation in the market.
InvestingPro Insights
As Alkami Technology's CFO W. Bryan Hill offloads a substantial portion of his holdings, investors might be curious about the company's current financial standing and market position. According to InvestingPro data, Alkami's market capitalization stands at $4 billion, reflecting its significant presence in the financial technology sector.
The company has shown impressive revenue growth, with a 26.73% increase in the last twelve months as of Q3 2023, reaching $315.56 million. This growth trajectory aligns with an InvestingPro Tip indicating that Alkami has delivered a high return over the last year, with the stock price total return reaching an impressive 74.23% over the past year.
Despite the strong revenue growth, it's worth noting that Alkami is not yet profitable over the last twelve months, as highlighted by another InvestingPro Tip. However, analysts are optimistic, predicting that the company will turn profitable this year. This potential turnaround could explain why six analysts have revised their earnings upwards for the upcoming period.
Investors should be aware that Alkami is trading near its 52-week high, with the current price at 93.85% of its peak. This, coupled with the InvestingPro Tip that the RSI suggests the stock is in overbought territory, may provide context for the CFO's decision to sell shares.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Alkami Technology, providing a more comprehensive view of the company's financial health and market position.
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