Brian R. Smith, a director and significant shareholder of Alkami Technology Inc. (NASDAQ:ALKT), has sold a substantial number of shares in the company. According to a recent SEC filing, Smith disposed of 2,875,000 shares at a price of $37.5 each, totaling approximately $107.8 million. The transactions occurred on November 8 and November 12, 2024, and were part of a registered, underwritten secondary offering. Following these sales, Smith still holds direct and indirect ownership stakes in the company.
In other recent news, Alkami Technology has reported robust Q3 financial results, surpassing both Wall Street and its own expectations. The company reported a substantial 27% increase in revenue to $85.9 million and an adjusted EBITDA of $8.3 million. Alkami Technology's annual recurring revenue (ARR) grew by 24% to $342 million, although it fell slightly short of analyst expectations. In response to these developments, KeyBanc Capital Markets raised its price target for Alkami Technology to $45, maintaining an Overweight rating.
Additionally, Alkami Technology has initiated a secondary offering of 7.5 million shares, with the proceeds going entirely to the selling stockholders, and the company not selling any shares or receiving any proceeds. J.P. Morgan Securities LLC is the underwriter and sole book-running manager for the offering.
Furthermore, Alkami Technology has also reported nine new digital banking wins and secured 14 renewals, indicating strong demand for its services. The company's implementation backlog now includes 36 clients, accounting for 1.3 million users. Looking ahead, Alkami Technology forecasts Q4 2024 revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million. These are recent developments in the company's operations.
InvestingPro Insights
While Brian R. Smith's significant share sale might raise eyebrows, it's essential to consider Alkami Technology Inc.'s (NASDAQ:ALKT) overall performance and market position. According to InvestingPro data, ALKT has demonstrated impressive growth, with revenue increasing by 26.73% over the last twelve months to $315.56 million. This robust revenue growth is complemented by a strong market performance, as evidenced by the stock's 78.73% price return over the past year.
InvestingPro Tips highlight that six analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for ALKT's future performance. Additionally, the company operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating a solid financial position despite not being profitable over the last twelve months.
It's worth noting that ALKT is trading at a high revenue valuation multiple and a high Price / Book ratio of 11.16. This could suggest that the market has priced in significant growth expectations, which aligns with the company's recent performance and analyst optimism.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for ALKT, providing a deeper understanding of the company's financial health and market position.
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