Plano, Texas – W. Bryan Hill, the Chief Financial Officer of Alkami Technology, Inc. (NASDAQ:ALKT), recently executed a significant stock transaction. On November 18, Hill sold 100,000 shares of the company's common stock, amounting to approximately $3.63 million. The shares were sold at a weighted average price of $36.31, with individual transaction prices ranging from $35.69 to $36.58.
This sale was conducted as part of a Rule 10b5-1 trading plan, which Hill adopted earlier this year on March 11. Following the transaction, Hill retains ownership of 471,403 shares in Alkami Technology.
In addition to the sale, Hill exercised stock options to acquire 100,000 shares at a price of $2.34 each, which were fully vested and exercisable. This acquisition was valued at $234,000, bringing his total shares owned to 571,403 after the transactions.
In other recent news, Alkami Technology demonstrated a robust financial performance in Q3, surpassing both Wall Street and its own expectations. The company's revenue increased by 27% to $85.9 million, and its adjusted EBITDA reached $8.3 million. Alkami's annual recurring revenue (ARR) also grew by 24% to $342 million. Following these developments, KeyBanc Capital Markets raised its price target for Alkami Technology to $45 and maintained an Overweight rating.
Additionally, Alkami Technology launched a secondary offering of 7.5 million shares, with the proceeds going entirely to the selling stockholders. The underwriter for this offering is J.P. Morgan Securities LLC. The company, however, has not made any recent acquisitions, despite a favorable environment for mergers and acquisitions.
Looking forward, Alkami Technology forecasts Q4 2024 revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million. The company's data technology is increasingly seen as a market differentiator, as over 70% of new client wins in 2024 incorporated data and marketing products. These are among the recent developments for Alkami Technology.
InvestingPro Insights
The recent stock transaction by Alkami Technology's CFO W. Bryan Hill comes at a time when the company is experiencing strong market performance. According to InvestingPro data, Alkami has seen a remarkable 64.78% price total return over the past year, with a 30.76% increase in the last six months alone. This upward trend is reflected in the stock's current price, which stands at 91.27% of its 52-week high.
Despite the company's impressive stock performance, InvestingPro Tips highlight that Alkami is not currently profitable over the last twelve months. However, analysts predict the company will turn profitable this year, which could explain the optimistic market sentiment. The company's revenue growth of 26.73% in the last twelve months as of Q3 2023 also suggests a positive trajectory.
It's worth noting that Alkami is trading at a high revenue valuation multiple and a high Price / Book multiple of 11.23, indicating that investors are pricing in significant future growth expectations. This aligns with the InvestingPro Tip that six analysts have revised their earnings upwards for the upcoming period.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Alkami Technology, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.