Stephen Bohanon, Chief Strategy and Product Officer at Alkami Technology, Inc. (NASDAQ:ALKT), recently executed significant stock transactions, according to a regulatory filing. On November 22, Mr. Bohanon sold a total of 64,605 shares of Alkami Technology common stock, which amounted to approximately $2.63 million. The shares were sold at prices ranging from $40.75 to $40.7519 per share.
Additionally, Mr. Bohanon exercised stock options to acquire 62,043 shares at a price of $15.46 per share, totaling approximately $959,184. Following these transactions, Mr. Bohanon's direct ownership of Alkami Technology shares stands at 373,695 shares, with an additional 678,232 shares held indirectly through trusts.
In other recent news, Alkami Technology has launched a secondary offering of 7.5 million shares, with the proceeds going entirely to the selling stockholders, namely entities affiliated with General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith. This development comes on the heels of a robust Q3 financial performance, where the company reported a 27% increase in revenue to $85.9 million and an adjusted EBITDA of $8.3 million. Alkami Technology's annual recurring revenue (ARR) also saw growth, increasing by 24% to $342 million.
In response to these financial results, KeyBanc Capital Markets upgraded its price target for Alkami Technology to $45, maintaining an Overweight rating. Alkami has also reported nine new digital banking wins and secured 14 renewals, indicating a strong demand for its services. Looking ahead, Alkami Technology has projected 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, the company has not made any recent acquisitions. These recent developments highlight Alkami's continued growth and adaptability in the digital banking sector.
InvestingPro Insights
The recent stock transactions by Stephen Bohanon, Alkami Technology's Chief Strategy and Product Officer, align with the company's strong market performance. According to InvestingPro data, Alkami's stock has shown impressive gains, with a 74.23% price total return over the past year and a substantial 63.67% return year-to-date. This robust performance is reflected in the stock trading near its 52-week high, with the current price at 93.85% of that peak.
Despite these positive indicators, investors should note that Alkami is currently trading at a high revenue valuation multiple and a high Price / Book ratio of 12.53. This suggests that the market has high expectations for the company's future growth and profitability.
InvestingPro Tips highlight that while Alkami has not been profitable over the last twelve months, analysts predict the company will turn profitable this year. This optimism is further supported by the fact that 6 analysts have revised their earnings upwards for the upcoming period.
For those considering an investment in Alkami, it's worth noting that InvestingPro offers 13 additional tips for ALKT, providing a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the company's current valuation and growth trajectory.
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