Key insights
- Alkami Technology (ALKT) is highlighted as a potential investment opportunity due to significant insider buying by General Atlantic and a company director, despite the stock being down 50% from its highs. The company reported 33% revenue growth and positive free cash flow. Analysts project substantial upside from the current price, citing a strong moat in providing digital infrastructure for regional banks and credit unions. The author has initiated a long position.
I have a lead on Alkami Technology (ALKT) that might interest the community. It looks like a classic broken stock, intact company setup.
The stock is down about 50% from its highs, but the business itself is actually performing well. They just reported 33% revenue growth for 2025 and are starting to generate real free cash flow. What caught my eye is the massive insider buying this month. One of their major institutional owners, General Atlantic, bought over 50 million dollars worth of shares between 17.35 and 18.41. The company director also bought shares with his own cash at 18.22. Getting in near the current price of 16.15-16.30 means buying significantly lower than the insiders who just dropped 50 million on it.
The case for value here is straightforward. Revenue grew 33% last year and management expects over 525 million in 2026. The company has a solid moat because it provides the essential digital infrastructure that regional banks and credit unions need to compete with giants like Chase. While there is still a loss on paper, adjusted EBITDA doubled recently and the business is finally generating positive free cash flow. This makes it self-sustaining. Most analysts see fair value between 22 and 36 dollars, so the current price level leaves a lot of room for upside. There is some debt from a recent acquisition, but with 99 million in cash and positive cash flow, there is a solid runway.
What do you guys think? Is the regional banking tech space too crowded, or is this a solid entry point?
My position: 2000 shares at 16.30 opened today.