Alkami Technology CFO Sells $1.18 Million Worth of Shares

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Alkami Technology’s Chief Financial Officer, W. Bryan Hill, recently conducted transactions involving the company’s common stock, as disclosed in a new filing with the Securities and Exchange Commission (SEC). The sale of 50,000 shares on March 13, 2024, yielded total proceeds exceeding $1.18 million, with the shares selling at prices ranging from $23.57 to $23.92, and a weighted average price of $23.7445 per share.

Additionally, Hill exercised options to acquire 50,000 shares of Alkami Technology’s common stock at a price of $2.34 per share, amounting to $117,000. These options, now fully vested and exercisable, were part of an executive compensation agreement allowing the purchase of shares at a predetermined price. Following these transactions, Hill now possesses 508,501 shares of common stock in the company.

Insider transactions, particularly those involving the sale of a substantial number of shares by a high-ranking executive such as a CFO, often attract investor attention as they may provide insights into the executive’s perspectives on the company’s current valuation and future prospects.

Alkami Technology, headquartered in Plano, Texas, specialises in providing cloud-based digital banking solutions to banks and credit unions. The company’s platform aims to assist financial institutions in gaining a competitive edge through enhanced user experiences and streamlined service delivery.

The SEC filing did not include any additional remarks or explanations for the transactions beyond the technical details of the trades. It is important to note that insider trading activity is subject to strict regulations and reporting requirements to ensure transparency and prevent unfair practices.

As Alkami Technology, Inc. (NASDAQ:ALKT) navigates the dynamic financial technology landscape, recent insider trading activity by the company’s CFO has brought attention to the company’s stock performance and valuation. To gain a comprehensive understanding, it is important to review key metrics and insights from reputable sources such as InvestingPro.

InvestingPro data indicates significant revenue growth for Alkami Technology, with a notable increase of 29.65% in the last twelve months as of Q4 2023, demonstrating the company’s expanding presence in the digital banking solutions sector. Furthermore, the company’s gross profit margin stands at a healthy 54.42%, highlighting its ability to maintain profitability in its operations.

However, despite these positive indicators, Alkami is currently not profitable, with a P/E ratio of -34.81 and an adjusted P/E ratio for the last twelve months as of Q4 2023 at -35.87, reflecting the challenges the company faces in achieving net profitability amidst its growth trajectory.

From an investment standpoint, analysts have revised their earnings upwards for the upcoming period, indicating an optimistic outlook on the company’s financial performance. Moreover, Alkami has experienced a significant price uptick over the last six months, with a 35.02% total return, indicating strong market confidence.

For investors seeking in-depth analysis, InvestingPro offers additional insights on Alkami’s liquid assets, debt levels, and valuation multiples, including a total of nine more InvestingPro Tips available for Alkami Technology. These can be accessed at: https://www.investing.com/pro/ALKT. For those interested in a yearly or biyearly Pro and Pro+ subscription, a 10% discount is available using the coupon code PRONEWS24.

Monitoring these financial metrics and expert insights can assist investors in making informed decisions about their interest in Alkami Technology’s stock, particularly in light of recent insider transactions.

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