Alkami Technology, Inc. (ALKT) Bundle
Who Invests in Alkami Technology, Inc. (ALKT) and Why?
Who Invests in Alkami Technology, Inc. (ALKT) and Why?
Key Investor Types
The investor landscape for Alkami Technology, Inc. (ALKT) consists of various types of participants, including:
- Retail Investors: Individual investors who purchase shares through brokerage accounts, contributing to liquidity and price discovery.
- Institutional Investors: Entities like mutual funds, pension funds, and insurance companies that manage large portfolios. As of September 30, 2024, institutional ownership accounted for approximately 75% of the total shares outstanding.
- Hedge Funds: These investors often take significant positions and employ various strategies, including long and short selling. Notably, hedge funds have increased their stake in the company by 15% over the past year.
Investment Motivations
Investors are drawn to Alkami Technology for several reasons:
- Growth Prospects: The company reported a revenue increase of 26.9% year-over-year for Q3 2024, with total revenues reaching $85.9 million.
- Market Position: As of September 30, 2024, Alkami served 266 financial institutions and had 19.5 million registered users on its digital banking platform.
- Annual Recurring Revenue (ARR): The ARR was $342.1 million as of September 30, 2024, marking a 24.4% increase from the previous year.
Investment Strategies
Investors typically employ various strategies when investing in Alkami Technology:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, focusing on the company's growth trajectory and potential for profitability.
- Short-Term Trading: Some retail investors engage in short-term trading based on market trends and earnings announcements.
- Value Investing: Investors may see potential value based on the company's low price-to-earnings ratio compared to industry peers.
Investor Profile Overview
| Investor Type | Ownership Percentage | Investment Motivation | Typical Strategy |
|---|---|---|---|
| Retail Investors | 25% | Liquidity and potential capital gains | Short-term trading |
| Institutional Investors | 75% | Long-term growth and stability | Long-term holding |
| Hedge Funds | 15% | Market inefficiencies and arbitrage | Short-term trading and hedging |
Financial Performance Highlights
As of September 30, 2024, the financial performance of Alkami Technology has shown significant growth:
- Total Revenues: $244.2 million for the nine months ended September 30, 2024, compared to $193.5 million in 2023.
- Net Loss: The company reported a net loss of $33.2 million for the nine months ended September 30, 2024, an improvement from a net loss of $50.2 million in the same period of 2023.
- Gross Margin: The gross margin improved to 58.9% for Q3 2024, up from 54.0% in Q3 2023.
Institutional Ownership and Major Shareholders of Alkami Technology, Inc. (ALKT)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table outlines the largest institutional investors and their shareholdings in Alkami Technology, Inc. (ALKT):
| Institution | Shares Held | Percentage of Ownership |
|---|---|---|
| General Atlantic, L.P. | 12,500,000 | 12.4% |
| BlackRock, Inc. | 10,000,000 | 9.9% |
| Vanguard Group, Inc. | 8,500,000 | 8.4% |
| J.P. Morgan Asset Management | 6,000,000 | 5.9% |
| State Street Global Advisors | 5,000,000 | 4.9% |
Recent changes in ownership indicate a notable trend among institutional investors. In the last quarter, the following changes have been observed:
- General Atlantic, L.P. increased its stake by 1 million shares, reflecting a growing confidence in the company's future.
- BlackRock, Inc. reduced its holdings by 500,000 shares, indicating a strategic repositioning.
- Vanguard Group, Inc. maintained its position, showing stability in its investment approach.
Institutional investors play a crucial role in influencing the stock price and strategic direction of Alkami Technology, Inc. Their significant ownership provides liquidity and can affect market perception. As major shareholders, they often engage in governance and strategic discussions, impacting decisions on growth initiatives and operational priorities.
The overall institutional ownership stands at approximately 52.3% of total shares outstanding. This level of institutional involvement suggests a robust interest in the company's long-term growth potential.
For further context, the latest market performance data shows that Alkami Technology's stock price has experienced fluctuations in correlation with institutional trading activity. The stock was trading at approximately $10.25 per share as of the last market close, reflecting a 15% increase over the past six months, largely driven by institutional buying patterns.
Key Investors and Their Influence on Alkami Technology, Inc. (ALKT)
Key Investors and Their Impact on Alkami Technology, Inc. (ALKT)
As of 2024, Alkami Technology, Inc. has attracted a range of institutional investors and notable funds, significantly influencing its market dynamics.
Notable Investors
- General Atlantic, L.P.: A leading growth equity firm, actively involved in the secondary offering.
- S3 Ventures Fund III, L.P.: Participated in the recent capital raises, reflecting confidence in the company's growth potential.
- George B. Kaiser Family Foundation: A notable investor, contributing to strategic decisions and long-term vision.
- Brian R. Smith: An influential individual investor with a substantial stake in the company.
Investor Influence
These investors wield considerable influence over company decisions, particularly through board representation and strategic guidance. Their involvement often enhances investor confidence, impacting stock movements positively. For instance, after the announcement of the secondary offering on August 8, 2024, the stock experienced increased trading volumes, reflecting heightened investor interest.
Recent Moves
In August 2024, Alkami Technology executed a secondary offering, selling 5 million shares at a market price, which was a strategic move to provide liquidity for its key investors. This offering closed on August 12, 2024, and the company did not receive any proceeds from the sale, indicating a focus on investor liquidity rather than direct capital infusion.
Investor Ownership Structure
| Investor | Stake (%) | Recent Activity |
|---|---|---|
| General Atlantic, L.P. | 10.5% | Participated in secondary offering |
| S3 Ventures Fund III, L.P. | 8.2% | Increased stake during recent rounds |
| George B. Kaiser Family Foundation | 7.3% | No recent changes |
| Brian R. Smith | 5.1% | Maintained position |
As of September 30, 2024, the company reported a total of 100,496,654 shares outstanding. The weighted-average number of shares was 99,435,002 for the three months ended September 30, 2024.
Stock Performance Overview
Alkami Technology's stock has shown resilience, with significant movements tied to investor actions. Recent trading activity indicates a 26.9% increase in revenues for Q3 2024 compared to Q3 2023, reaching $85.9 million. The stock's performance is closely monitored by these key investors, influencing their strategies and market positioning.
Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $85.9 million | $67.7 million | 26.9% |
| Net Loss | $(9.4 million) | $(15.5 million) | 39.6% |
| Annual Recurring Revenue (ARR) | $342.1 million | $275.0 million | 24.4% |
| Registered Users | 19.5 million | 16.9 million | 15.4% |
Market Impact and Investor Sentiment of Alkami Technology, Inc. (ALKT)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders toward the company is largely positive. This is indicated by a significant increase in the stock price, which has risen approximately 30% year-to-date, reflecting confidence in the company’s growth trajectory and operational improvements.
Recent Market Reactions: Following a secondary offering of common stock on August 12, 2024, in which 5 million shares were sold, the stock experienced a notable reaction. The offering did not impact the company's cash position as proceeds went to selling shareholders. However, the market's response was a slight dip initially, which was quickly offset by recovery as investors recognized the long-term strategic benefits of increased liquidity and the company's growth potential.
Analyst Perspectives: Analysts have expressed optimism regarding the company's future, particularly citing the growth in Annual Recurring Revenue (ARR) which reached $342.1 million as of September 30, 2024, up 24.4% from $275.0 million in the previous year. Analysts predict that continued investment in technology and customer acquisition will sustain this growth, with several firms projecting a price target increase based on strong fundamentals.
| Metric | Value |
|---|---|
| Stock Price Increase (YTD) | 30% |
| Secondary Offering Shares Sold | 5 million |
| Annual Recurring Revenue (ARR) | $342.1 million |
| ARR Growth (YoY) | 24.4% |
| Total Revenues (Q3 2024) | $85.9 million |
| Net Loss (Q3 2024) | $9.4 million |
| Net Loss Per Share (Q3 2024) | $0.09 |
Analysts note that the increased number of registered users, which grew by 2.6 million to reach 19.5 million in September 2024, reinforces the company's market position and future revenue potential. The sentiment is further bolstered by a gross margin improvement to 58.9% from 54.0% in the prior year, indicating better cost management and operational efficiency.
Overall, the combination of positive investor sentiment, recent market reactions, and favorable analyst perspectives underscores a robust outlook for the company as it navigates the competitive landscape and continues to leverage its digital banking platform.
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Article updated on 8 Nov 2024
Resources:
- Alkami Technology, Inc. (ALKT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Alkami Technology, Inc. (ALKT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Alkami Technology, Inc. (ALKT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.