Alkami Technology, Inc. (NASDAQ:ALKT) executive Stephen Bohanon, who serves as the Chief Strategy & Product Officer, has recently sold a significant amount of company stock, according to a new SEC filing. The officer executed two separate sales transactions for a combined total of over $595,000.
On June 6, 2024, Bohanon sold 19,460 shares at a weighted average price of $26.8861, amounting to approximately $523,203. Additionally, another set of 2,711 shares were sold at an average price of $26.80, totaling around $72,654. These transactions were executed pursuant to a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a specified time.
The sales took place within a price range of $26.77 to $27.11, as detailed in the SEC filing. The exact number of shares sold at each price point within this range can be provided upon request to the issuer, any security holder of the issuer, or the SEC staff.
Following these transactions, Bohanon's direct holdings in Alkami Technology stock have been adjusted to 407,940 shares. Additionally, the SEC filing includes a footnote indicating indirect holdings following the reported transactions, which include 339,116 shares held by Botech Trust, where Bohanon is a trustee, and another 339,116 shares held by KBCouture Trust, with Bohanon's spouse acting as trustee.
The recent filing provides a glimpse into the trading activities of Alkami Technology's executives and offers investors a clearer picture of insider stock movements within the company. Alkami Technology, headquartered in Plano, Texas, specializes in providing cloud-based digital banking solutions and services.
In other recent news, Alkami Technology has reported a strong financial performance for the first quarter of 2024. The company's earnings results showcased a 27% year-over-year increase in subscription revenue, with a total revenue of $76.1 million. Alkami also saw a significant gross margin expansion of approximately 360 basis points and a robust adjusted EBITDA of $3.8 million.
The company has experienced solid growth, adding six new clients and implementing eight more during the quarter, leading to a total user base growing to 18.1 million, a 19.8% increase from the previous year. These recent developments have led to an optimistic outlook for the second quarter and the full fiscal year 2024.
Analyst firm Needham has maintained a Buy rating on Alkami Technology and raised the shares target to $32 from $30, due to the company's strong first-quarter results and positive guidance. Needham's endorsement is reinforced by Alkami's raised growth outlook, which is now reflected in the increased price target.
InvestingPro Insights
As investors digest the news of Stephen Bohanon's recent stock sales, it's essential to consider the broader financial context of Alkami Technology, Inc. (NASDAQ:ALKT). Recent data from InvestingPro sheds light on the company's financial performance and market valuation, which may influence investor sentiment.
Alkami Technology's market capitalization stands at approximately $2.62 billion, reflecting the company's size and market value. Despite not being profitable over the last twelve months, analysts are optimistic, predicting that the company will reach profitability this year. This forward-looking perspective is supported by a strong revenue growth rate of 28.01% over the last twelve months as of Q1 2024, indicating a robust expansion of Alkami's business operations.
InvestingPro Tips highlight that Alkami's liquid assets exceed its short-term obligations, suggesting a solid liquidity position that may reassure investors of the company's ability to meet its immediate financial commitments. Furthermore, Alkami operates with a moderate level of debt, which could be a sign of prudent financial management. However, investors should note the company's high revenue valuation multiple and a high Price / Book multiple of 8.13, which might indicate a premium market valuation.
For those looking to delve deeper into Alkami's financial metrics and gain additional insights, there are currently 7 more InvestingPro Tips available, which can be accessed through InvestingPro. Subscribers can take advantage of these tips and use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a more comprehensive understanding of Alkami's financial health and future prospects.
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