General Atlantic, a leading global growth equity firm, has executed a significant sale of shares in Alkami Technology, Inc. (NASDAQ:ALKT), a prominent provider of cloud-based digital banking solutions. The transaction involved the sale of 1,666,667 shares at a price of $31.17 each, totaling approximately $51.95 million.
The shares were sold by General Atlantic (AL), L.P., under a registered block trade that was completed on August 12, 2024. Following the sale, General Atlantic (AL), L.P. continues to hold a substantial number of Alkami Technology shares, with their ownership totaling 15,555,049 shares.
This move by General Atlantic comes as part of their investment management activities. The firm, through its various entities, has been a significant investor in Alkami Technology, often engaging in both the acquisition and disposition of shares.
Alkami Technology, headquartered in Plano, Texas, specializes in providing cloud-based platforms that empower banks and credit unions to digitally serve their customers. The company's stock is publicly traded and has been a part of the dynamic prepackaged software industry, a sector that has seen substantial growth and innovation in recent years.
Investors often monitor the buying and selling activities of major stakeholders like General Atlantic, as these transactions can provide insights into the firm's confidence and strategic decisions regarding their investments.
The detailed ownership and the nature of the transaction were outlined in the footnotes of the SEC filing, indicating that the shares sold were held by General Atlantic (AL), L.P., and that the general partner of GA AL is General Atlantic (SPV) GP, LLC. The filing also included a disclaimer of beneficial ownership by the reporting entities, stating that the report should not be considered an admission of beneficial ownership for any securities not directly owned.
As the market processes the implications of this sizable sale, investors and analysts will be watching Alkami Technology's performance and General Atlantic's future investment moves closely.
In other recent news, Alkami Technology, Inc. has made significant strides in its financial performance. The company has reported a 25% increase in revenue for Q2 2024, along with an adjusted EBITDA of $4.6 million. The company has also expanded its credit facility, contributing to its strong financial position.
Alkami has been the subject of attention from several analyst firms, including Craig-Hallum and Lake Street Capital Markets, both of which have raised their price targets for the company, maintaining positive ratings. This follows the company's robust financial performance, which exceeded expectations in both revenue and earnings.
In addition to these financial developments, Alkami has announced 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.
Alkami has also 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 recent developments shed light on Alkami's operational and financial progress.
InvestingPro Insights
Alkami Technology, Inc. (NASDAQ:ALKT) has demonstrated a robust performance in the market, with a notable 105.46% return over the last year, reflecting investor optimism. Analysts have also revised their earnings upwards for the upcoming period, suggesting that the company's prospects are improving. This positive sentiment is further supported by Alkami's substantial revenue growth of 26.69% over the last twelve months as of Q2 2024, indicating strong business momentum.
Despite not being profitable over the last twelve months, with a P/E ratio of -57.85, Alkami's strong return over the last three months of 22.89% and a year-to-date price total return of 28.87% highlight its growth trajectory. Moreover, with liquid assets surpassing short-term obligations, the company maintains a healthy liquidity position. This financial stability is crucial as Alkami continues to innovate within the prepackaged software industry.
For investors seeking deeper insights, there are additional InvestingPro Tips available on the platform, which could provide further analysis and guidance on Alkami's financial health and prospects. It's worth noting that the company operates with a moderate level of debt, which is a positive signal for risk-averse investors.
For a comprehensive understanding of Alkami Technology's investment potential, including more InvestingPro Tips, visit https://www.investing.com/pro/ALKT.
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