40.1 F
London
February 24, 2024
PI Global Investments
Private Equity

Alkami Technology, Inc. (NASDAQ:ALKT) surges 7.8%; private equity firms who own 39% shares profited along with institutions


Key Insights

  • The considerable ownership by private equity firms in Alkami Technology indicates that they collectively have a greater say in management and business strategy
  • 54% of the business is held by the top 4 shareholders
  • Insiders have sold recently

Every investor in Alkami Technology, Inc. (NASDAQ:ALKT) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private equity firms with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Private equity firms gained the most after market cap touched US$2.4b last week, while institutions who own 36% also benefitted.

Let’s delve deeper into each type of owner of Alkami Technology, beginning with the chart below.

View our latest analysis for Alkami Technology

NasdaqGS:ALKT Ownership Breakdown January 14th 2024

What Does The Institutional Ownership Tell Us About Alkami Technology?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Alkami Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Alkami Technology, (below). Of course, keep in mind that there are other factors to consider, too.

NasdaqGS:ALKT Earnings and Revenue Growth January 14th 2024

We note that hedge funds don’t have a meaningful investment in Alkami Technology. Our data shows that General Atlantic Service Company, L.P. is the largest shareholder with 20% of shares outstanding. With 19% and 11% of the shares outstanding respectively, S3 Ventures, LLC and George Kaiser are the second and third largest shareholders.

On looking further, we found that 54% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Alkami Technology

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Alkami Technology, Inc.. It is very interesting to see that insiders have a meaningful US$346m stake in this US$2.4b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Alkami Technology. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 39% stake in Alkami Technology. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we’ve spotted 3 warning signs for Alkami Technology you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Valuation is complex, but we’re helping make it simple.

Find out whether Alkami Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.



Source link

Related posts

Amundi to acquire private markets specialist Alpha Associates | News

D.William

BlackRock acquires Global Infrastructure Partners for $12.5bn in private markets push

D.William

Private equity takeover of Digicel by month’s end | Business

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.