Assessing Alkami Technology: Insights From 5 Financial Analysts

Alkami Technology ALKT has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Alkami Technology, presenting an average target of $24.0, a high estimate of $26.00, and a low estimate of $21.00. This upward trend is evident, with the current average reflecting a 12.94% increase from the previous average price target of $21.25.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive Alkami Technology is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Alkami Technology. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Alkami Technology compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Alkami Technology's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Alkami Technology's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Alkami Technology analyst ratings.

About Alkami Technology

Alkami is a cloud-based digital banking solutions provider. Alkami Platform, allows FIs to onboard and engage new users, accelerate revenues and meaningfully improve operational efficiency with the support of a proprietary, true cloud-based, multi-tenant architecture.

Alkami Technology's Financial Performance

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Positive Revenue Trend: Examining Alkami Technology's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 26.76% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -22.86%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Alkami Technology's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -4.8%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Alkami Technology's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -3.24%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Alkami Technology's debt-to-equity ratio is below the industry average. With a ratio of 0.32, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.