Needham & Company assumes coverage on Mitek Systems (NASDAQ: MITK) with a Buy rating and a price target of $9.50.
Analyst Spencer Bogart commented, "Mitek Systems is a strategically positioned growth software company that is capitalizing on the rising significance of the mobile channel for enterprises. We believe Mitek will continue to reap the benefits of its dominant position in the rapidly growing mobile check deposit market which is fueling investments in other products addressing emerging challenges and opportunities for enterprises in the increasingly critical mobile channel. We're particularly encouraged by Mitek's investment (and strong early traction) in the identity and authentication market which leverages the company's core competencies and substantially expands Mitek's addressable market opportunity across verticals and geographies."
5 years ago around the same time of year the SP went from the $6s to the $10s before the 3Q ER. All in a matter of a few days. The rush to get in before ER sent the SP soaring. Let's see what happens the next several days.
Mitek guided a soft quarter for the last quarter but they ended up beating it. Analysts guided $8.9m this quarter. Let's see if they beat it again.
They might have to cover when demand goes up as the price gets lower. Plenty of buyers waiting on the sidelines until it reaches a certain price point. Mitek is near there now. The RSI is below 30. The sweet price everyone is looking for is mid to upper $6s. Lets see what happens next week.
Short interest was up about 600k from June 1 to 15. It would be great to get a noose around them.
Mitek officially joined the Russell 3000 after hours. Those are shares being rebalanced into Russell Funds.
If it does go down to the $6 range it will last for a second as there are many buyers waiting to jump in. Then it will move up fast because ER is coming at the end of July.
This reminds me of Mitek in 2011. Initially, the SP went as high as $10 then dropped back to $6.50 before moving back up to $13. Very nerve racking. And if you try and chase or time it to maximize your returns you could get in trouble. I was not in it then but I was checking up on it every few days. Just ignore the day to day prices and follow the Quarterly numbers and analysts price targets.
Mitek is in London this weekend. Doing something I guess. They have been going to Europe a lot lately. Maybe because Europe is always ahead of the US when it comes to financial security.
Bank of America’s focus on mobile banking
With 20 million active mobile users and growing, Bank of America’s mobile banking platform is an evolving source of increased customer engagement and satisfaction. During the first quarter of 2016, mobile banking customers logged into their accounts almost 900 million times, or approximately 46 times per user. During that same period, customers made nearly 24 million mobile bill payments and 70 million transfers, a growth of 29 percent and 20 percent, respectively, over 2015. Customers also used their mobile devices to deposit more than 254,000 checks daily and to schedule 104,000 appointments with a personal banker or financial center specialist. More customers are opening new accounts through mobile, with sales increasing by 50 percent over the past year.
You can search the full article online
It needs to do whatever it needs to do. It's not going to change the fact that it will go up to $13 by end of year. Nothing can stop it. If you bought too high just hold unless you have a margin call.
From Charlse Schwabb website
Small-cap stock investors should pay attention to the annual reconstitution—or addition and deletion of stocks—of the Russell 2000 Index in June.
Small-cap index funds benchmarked against the Russell 2000 will buy these stocks, typically increasing demand and prices.
The "Russell reconstitution trade" is when investors try to anticipate and buy the new stocks before the June announcement
The short interest actually went down right before the article. So it must have been the old short that probably got Streetsweeper to write that article. Or someone that wanted in lower. 4m shares are lot of shares. Do you think those were new shares being bought short? I don't know how it works. The only down side I see is a gap at $6.50. But they would have made more money if they shorted from the $9s to $7.40. Than from $7.40 to $6.50