Mitek Systems (NASDAQ:MITK) Shares Gap Up on Better-Than-Expected Earnings

Mitek Systems, Inc. (NASDAQ:MITK)’s share price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $9.49, but opened at $11.42. Mitek Systems shares last traded at $11.19, with a volume of 896,989 shares changing hands.

The software maker reported $0.33 EPS for the quarter, topping analysts’ consensus estimates of $0.17 by $0.16. Mitek Systems had a positive return on equity of 12.32% and a negative net margin of 4.05%. The business had revenue of $43.22 million for the quarter, compared to analyst estimates of $41.30 million. During the same period in the prior year, the company earned $0.15 EPS. Mitek Systems’s revenue for the quarter was up 14.8% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on MITK. Jefferies Financial Group lowered Mitek Systems from a “buy” rating to a “hold” rating and lowered their target price for the company from $17.00 to $9.50 in a research note on Wednesday, September 4th. StockNews.com lowered shares of Mitek Systems from a “buy” rating to a “hold” rating in a report on Tuesday. Finally, HC Wainwright boosted their target price on shares of Mitek Systems from $11.00 to $13.00 and gave the stock a “buy” rating in a research note on Tuesday. Two equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat, Mitek Systems presently has an average rating of “Moderate Buy” and a consensus price target of $12.63.

Insider Activity

In related news, SVP Christopher H. Briggs sold 3,320 shares of the business’s stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $9.08, for a total transaction of $30,145.60. Following the completion of the sale, the senior vice president now directly owns 65,353 shares of the company’s stock, valued at $593,405.24. The trade was a 4.83 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Jason Gray sold 6,222 shares of the stock in a transaction that occurred on Wednesday, December 11th. The shares were sold at an average price of $9.07, for a total transaction of $56,433.54. Following the completion of the transaction, the insider now owns 164,342 shares in the company, valued at $1,490,581.94. This represents a 3.65 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 16,699 shares of company stock valued at $152,140. Company insiders own 2.10% of the company’s stock.

Institutional Trading of Mitek Systems

A number of institutional investors have recently bought and sold shares of MITK. Innealta Capital LLC bought a new position in Mitek Systems during the second quarter worth about $32,000. nVerses Capital LLC acquired a new stake in shares of Mitek Systems in the 2nd quarter valued at approximately $57,000. Avior Wealth Management LLC bought a new position in Mitek Systems during the 3rd quarter worth approximately $60,000. Squarepoint Ops LLC acquired a new position in Mitek Systems during the second quarter valued at approximately $138,000. Finally, Intech Investment Management LLC bought a new stake in Mitek Systems in the third quarter valued at approximately $117,000. Institutional investors and hedge funds own 83.64% of the company’s stock.

Mitek Systems Price Performance

The company’s 50 day simple moving average is $9.04 and its 200 day simple moving average is $9.91. The stock has a market cap of $505.01 million, a P/E ratio of -72.87 and a beta of 1.12. The company has a debt-to-equity ratio of 0.68, a current ratio of 4.46 and a quick ratio of 4.46.

Mitek Systems Company Profile

Mitek Systems, Inc provides mobile image capture and digital identity verification solutions worldwide. Its product portfolio includes Mobile Deposit that enables individuals and businesses to remotely deposit checks using their camera-equipped smartphone or tablet; Mobile Verify, an identity verification solution that is integrated into mobile apps, mobile websites, and desktop applications; and Mobile Fill, which includes automatic image capture, minimizes the numbers of clicks, and expedites form fill completion.