Alex Shootman, Chief Executive Officer of Alkami Technology, Inc. (NASDAQ:ALKT), recently sold a significant portion of company stock, according to a recent SEC filing. On November 27, Shootman sold 75,000 shares of common stock in the company, totaling approximately $2.95 million. The shares were sold at an average price of $39.28 each, with individual transaction prices ranging from $38.84 to $39.57. This sale comes amid ALKT's impressive 73% stock price surge over the past year, according to InvestingPro data, which also indicates the company's robust 27% revenue growth in the last twelve months.
Following this transaction, Shootman retains ownership of 981,207 shares. The sales were executed under a pre-established Rule 10b5-1 trading plan, which was adopted on August 19, 2024. This plan allows insiders of publicly traded corporations to set up a predetermined schedule for selling stocks, providing a degree of legal protection against accusations of insider trading. InvestingPro analysis reveals that while ALKT maintains strong liquidity with a current ratio of 3.52, the stock is currently trading above its Fair Value. For deeper insights into ALKT's valuation and 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Alkami Technology has initiated a secondary offering of 7.5 million shares of common stock, with entities affiliated with General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith as the selling stockholders. The company will not be selling any shares or receiving any proceeds from this offering. The potential sale of shares and additional option are subject to risks and uncertainties that could affect the timing and completion of the offering.
In financial developments, Alkami Technology reported a significant 27% increase in Q3 revenue to $85.9 million and an adjusted EBITDA of $8.3 million, which exceeded expectations. The company's annual recurring revenue (ARR) grew by 24% to $342 million, slightly falling short of analyst expectations. The company forecasts Q4 2024 revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million.
Following these results, KeyBanc Capital Markets has raised its price target for Alkami Technology to $45, maintaining an Overweight rating. Alkami Technology also reported nine new digital banking wins and secured 14 renewals, indicating strong demand for its services. Despite a favorable environment for mergers and acquisitions, Alkami has not made any recent acquisitions.
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