Douglas A. Linebarger, Chief Legal Officer of Alkami Technology, Inc. (NASDAQ:ALKT), recently sold 6,917 shares of the company's common stock. The shares were sold on December 3, 2024, at a price of $38.37 per share, totaling approximately $265,405. The transaction comes as ALKT trades near its 52-week high of $42.29, with the stock delivering an impressive 63.5% return year-to-date.
This transaction was conducted to cover tax withholding obligations related to the vesting and settlement of restricted stock units (RSUs). Following this sale, Linebarger retains direct ownership of 241,668 shares of Alkami Technology, which currently has a market capitalization of $3.99 billion. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with 12 additional exclusive insights available to subscribers.
In other recent news, Alkami Technology has launched 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 proceeds of this offering will go entirely to the selling stockholders, with J.P. Morgan Securities LLC acting as the underwriter and sole book-running manager.
In financial performance, Alkami reported a significant 27% increase in Q3 revenue to $85.9 million, surpassing both Wall Street and its own expectations. The company's adjusted EBITDA of $8.3 million also exceeded expectations. Alkami's annual recurring revenue (ARR) grew by 24% to $342 million, although it fell slightly short of analyst projections.
KeyBanc Capital Markets, in response to these developments, upgraded its price target for Alkami to $45 while maintaining an Overweight rating. Additionally, Alkami secured nine new digital banking wins and 14 renewals, demonstrating strong demand for its services. The company's implementation backlog now includes 36 clients, accounting for 1.3 million users.
Looking ahead, 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, 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.
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