In a recent transaction, Stephen Bohanon, Chief Strategy & Product Officer at Alkami Technology, Inc. (NASDAQ:ALKT), sold 15,605 shares of the company's common stock. The transaction took place on September 5, 2024, with the shares being sold at a price of $31.59 each, amounting to a total value of approximately $492,961.
The sale was conducted to cover tax withholding obligations related to the vesting and settlement of Restricted Stock Units (RSUs). It was a "sell to cover" transaction, which is a common method for executives to satisfy tax liabilities arising from the vesting of equity awards. This type of sale is not considered a discretionary transaction, as it is typically mandated by the terms of the equity award.
Following this transaction, it was noted that Stephen Bohanon's direct holdings in Alkami Technology decreased, yet he still maintains a significant indirect stake in the company. This includes shares held in trusts where he or his spouse serve as trustees, as indicated in the footnotes of the filing.
Investors often monitor insider transactions such as these for insights into the perspectives of high-ranking officials within a company. While transactions to cover tax obligations are not necessarily indicative of an executive's outlook on the company's future performance, they do result in changes to insider ownership levels that are worth noting.
Alkami Technology, headquartered in Plano, Texas, specializes in providing cloud-based digital banking solutions to banks and credit unions. The company has been at the forefront of delivering innovative software designed to enhance the user experience and streamline financial services.
The stock transaction details have been filed with the Securities and Exchange Commission and are publicly accessible for review.
In other recent news, Alkami Technology, Inc. has priced a secondary offering of 5 million shares. The shares are being sold by affiliates of General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. The company itself will not be selling any shares nor will it gain any proceeds from this offering. This offering is managed by J.P. Morgan Securities LLC and is expected to close soon, with a 30-day option for the underwriter to buy up to an additional 750,000 shares.
Alkami has been the focus of several analyst firms following its strong financial performance. Craig-Hallum, Lake Street Capital Markets, Needham & Company, and Barclays (LON:BARC) have all raised their price targets for the company, maintaining positive ratings.
Alkami reported a 25% increase in revenue for Q2 2024, with an adjusted EBITDA of $4.6 million. The company has also expanded its credit facility. In addition, Alkami recently appointed Prerna Sachdeva as the new principal accounting officer, bringing over two decades of experience in global accounting and financial reporting to the role. These are the latest developments, shedding light on Alkami's operational and financial progress.
InvestingPro Insights
Alkami Technology, Inc. (NASDAQ:ALKT) has been a subject of interest for investors, particularly in light of recent insider transactions. To provide additional context, here are some insights derived from InvestingPro metrics and tips:
The company has shown a strong return over the last year with a 76.52% price total return, and analysts are optimistic about the company's profitability, predicting it will be profitable this year. This positive sentiment is further supported by the fact that three analysts have revised their earnings upwards for the upcoming period. These details could be key indicators for investors assessing the company's growth trajectory and future earnings potential.
From a financial health perspective, Alkami's liquid assets exceed its short-term obligations, which suggests a solid liquidity position. Moreover, the company operates with a moderate level of debt, which may be comforting for investors concerned about financial stability.
However, it's worth noting that Alkami is trading at a high revenue valuation multiple and a high Price / Book multiple of 8.87, which could signal that the stock is relatively expensive compared to its book value. Additionally, despite recent price upticks, the company has not been profitable over the last twelve months, with a negative earnings per share (EPS) of -0.54 USD.
For those interested in a deeper dive into Alkami Technology's financials and forecasts, there are additional InvestingPro Tips available on the platform, including insights on revenue growth, gross profit margins, and more. As of now, there are a total of 10 more tips listed in InvestingPro for Alkami Technology, which can be accessed for further detailed analysis.
Investors looking to stay informed about the company's performance and insider transactions can also mark the next earnings date on their calendar, which is scheduled for October 31, 2024.
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