Last Updated: 12 Nov 2024
Executive Summary
Alkami Technology Inc. (ALKT) is a cloud-based digital banking platform provider headquartered in Plano, Texas. Despite strong revenue growth, the company continues to operate at a loss, with a trailing twelve-month EBITDA of -$43.6 million. The stock's current price of $37.64 is above its 50-day moving average but below its analyst target price of $43.6.
Company Overview
Alkami provides banks and credit unions with a comprehensive digital banking solution that includes mobile banking, online banking, and core processing. The company's platform is designed to enhance customer engagement, streamline operations, and reduce costs for financial institutions. Alkami has a strong customer base, including over 200 banks and credit unions across the United States.
Fundamental Analysis
Revenue: Alkami's revenue has grown steadily in recent years, reaching $315.6 million in the trailing twelve months. This represents a 26.9% increase year-over-year.
Profitability: Alkami continues to operate at a loss, with a trailing twelve-month EBITDA of -$43.6 million. The company's operating margin is -12.1%.
Valuation: Alkami's stock is trading at a price-to-sales ratio of 11.99 and a price-to-book ratio of 11.18. These valuations are above the industry average, reflecting the company's strong growth potential.
Technical Analysis
Trend: Alkami's stock is currently in an uptrend, with the price above its 50-day moving average.
Support and Resistance: The stock has strong support at $33.65 (50-day moving average) and resistance at $41.36 (52-week high).
Momentum: The stock's momentum is positive, with the Relative Strength Index (RSI) above 50.
Short Term Outlook
In the short term, Alkami's stock is expected to continue its uptrend. The stock is trading above its 50-day moving average and has strong momentum. However, the stock is approaching resistance at $41.36, which could limit its upside potential in the near term.
Long Term Outlook
In the long term, Alkami has the potential to be a strong investment. The company's digital banking platform is well-positioned to benefit from the growing demand for digital banking services. However, the company's profitability remains a concern, and investors should monitor the company's progress in improving its margins.
Analyst Recommendations
Analysts are generally bullish on Alkami Technology. Out of 11 analysts, 2 have a Strong Buy rating, 6 have a Buy rating, 3 have a Hold rating, and 0 have a Sell or Strong Sell rating. The average analyst target price is $43.6, implying a potential upside of 15.8% from the current price.
