Douglas A. Linebarger, the Chief Legal Officer of Alkami Technology, Inc. (NASDAQ:ALKT), reported significant stock transactions in a recent SEC filing. On November 20 and 21, Linebarger sold a total of 55,415 shares of Alkami Technology common stock, amounting to approximately $2.13 million. The shares were sold at prices ranging from $38.0802 to $38.9914 per share.
These sales were part of a series of transactions that included the acquisition of 55,415 shares through stock option exercises at a price of $15.46 per share, totaling $856,715. Following these transactions, Linebarger holds a direct ownership of 248,585 shares in the company.
In other recent news, Alkami Technology, Inc. has launched a secondary offering of 7.5 million shares. The shares are being sold by entities affiliated with General Atlantic, S3 Ventures, George B. Kaiser, and Brian R. Smith, with the proceeds going entirely to the selling stockholders. J.P. Morgan Securities LLC is the underwriter and sole book-running manager for the offering.
In addition, Alkami Technology has reported a strong Q3 financial performance, with a significant 27% increase in revenue to $85.9 million and an adjusted EBITDA of $8.3 million. The company's annual recurring revenue (ARR) grew by 24% to $342 million. In response to these developments, KeyBanc Capital Markets 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. For Q4 2024, the company forecasts revenue between $89 million and $90 million, with full-year guidance of $333.2 million to $334.2 million. These are the latest developments for the company.
InvestingPro Insights
The recent stock transactions by Alkami Technology's Chief Legal Officer Douglas A. Linebarger come at a time when the company's stock is performing exceptionally well. According to InvestingPro data, Alkami has seen a significant 80.12% price return over the past year, with the stock trading near its 52-week high. This strong performance is reflected in the company's robust 26.73% revenue growth over the last twelve months.
Despite the impressive stock performance, InvestingPro Tips highlight that Alkami is not currently profitable over the last twelve months. However, analysts are optimistic, predicting that the company will turn profitable this year. This expectation aligns with the company's strong revenue growth and could explain why six analysts have revised their earnings upwards for the upcoming period.
Investors should note that Alkami is trading at a high revenue valuation multiple, which may indicate market confidence in its growth prospects. The company's liquid assets exceed short-term obligations, suggesting a solid financial position in the near term. For those seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Alkami Technology, providing deeper insights into the company's financial health and market position.
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