In a recent transaction on September 5, W. Bryan Hill, the Chief Financial Officer of Alkami Technology, Inc. (NASDAQ:ALKT), sold 17,937 shares of the company's common stock at a price of $31.59 per share. The total value of the shares sold amounted to approximately $566,629.
This sale was conducted to cover tax withholding obligations associated with the vesting and settlement of Restricted Stock Units (RSUs). According to the footnote in the filing, this "sell to cover" transaction was mandatory to satisfy tax withholding requirements and was not a discretionary market transaction by Hill.
Following the transaction, Hill continues to own 471,403 shares of Alkami Technology, indicating a significant remaining investment in the company. The sale and the remaining ownership stake are detailed in a Form 4 filing with the Securities and Exchange Commission, which was signed on behalf of Hill by Douglas A. Linebarger, as Attorney-in-Fact, on September 6.
Alkami Technology, Inc., headquartered in Plano, Texas, specializes in providing cloud-based digital banking solutions to banks and credit unions. The company is known for its services in prepackaged software, which is a competitive and rapidly evolving sector.
In other recent news, Alkami Technology, Inc. has announced a secondary offering of 5 million shares. The shares are being sold by affiliates including General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. Proceeds from the sale will go entirely to the selling stockholders, with Alkami not selling any shares nor receiving any proceeds from the sale. This comes after Alkami reported a 25% increase in revenue for Q2 2024, with an adjusted EBITDA of $4.6 million.
Analyst firms such as Craig-Hallum, Lake Street Capital Markets, Needham & Company, and Barclays (LON:BARC) have all raised their price targets for Alkami following its strong financial performance. Additionally, Alkami has expanded its credit facility and appointed Prerna Sachdeva as the new principal accounting officer. These recent developments shed light on Alkami's operational and financial progress.
InvestingPro Insights
Alkami Technology, Inc. (NASDAQ:ALKT) has been under the investor's microscope recently, especially after the insider transaction involving CFO W. Bryan Hill. As stakeholders evaluate the company's financial health and future prospects, several metrics and analyst insights from InvestingPro can provide a clearer picture.
InvestingPro data shows that Alkami has a market capitalization of $2.91 billion, reflecting its position in the market. Despite not being profitable over the last twelve months, analysts are optimistic about the company's future, predicting it will turn profitable this year. This optimism is supported by a significant revenue growth of 26.69% over the last twelve months as of Q2 2024. Moreover, the company's gross profit margin stands strong at 56.94%, indicating its ability to manage costs effectively relative to its sales.
InvestingPro Tips highlight that Alkami has seen a strong return over the last year, with a 76.52% price total return, which is notable in the competitive prepackaged software sector. Additionally, the company's liquid assets exceed its short-term obligations, which is a positive sign of financial health and stability. This financial cushion could help Alkami navigate through the competitive landscape of digital banking solutions.
For investors seeking more detailed analysis and additional tips, InvestingPro offers a comprehensive list of insights. As of now, there are 11 additional InvestingPro Tips available for Alkami Technology, which can be accessed for a deeper dive into the company's financials and market performance.
With the company trading at a high Price / Book multiple of 8.87, valuation is an important factor for potential investors to consider. The InvestingPro Fair Value estimate stands at $24.61, providing a reference point for the current stock price. This valuation, alongside the real-time metrics and tips, serves as a crucial tool for investors making informed decisions regarding Alkami Technology.
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