This summary was created by AI, based on 2 opinions in the last 12 months.
The experts have mixed opinions on Mitek Systems (MITK-Q). Trevor Rose's insights from 5i Research suggest that the company is facing reporting and regulatory issues due to changes in the SEC's public filing system, resulting in a 5% decline in revenue. However, they believe the reasons for these issues are benign and do not reflect a disaster. On the other hand, there are concerns about non-compliance and the receipt of a 'delisting determination' from Nasdaq, indicating a lack of timely reporting and management execution. Despite these challenges, the company's operations and fundamentals are still viewed positively.
With continuing issues of being non-compliant and receiving a 'delisting determination' from the Nasdaq, we would continue to see this name as a hold. Momentum and earnings results have been improving, but the inability to comply and report in a timely manner is concerning and representative of a management team that is currently not executing well. We like the company's operations and its fundamentals, however, due to its non-compliance and notice that its 10-Q for the period ending December 31, 2023, which is due on February 9, 2024, will not be completed until its 10-K has been filed. Until these issues resolve, we would be comfortable holding the name.
Unlock Premium - Try 5i Free
Mitek Systems is a American stock, trading under the symbol MITK-Q on the NASDAQ (MITK). It is usually referred to as NASDAQ:MITK or MITK-Q
In the last year, 2 stock analysts published opinions about MITK-Q. 0 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Mitek Systems.
Mitek Systems was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Mitek Systems.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered Mitek Systems In the last year. It is a trending stock that is worth watching.
On 2025-01-17, Mitek Systems (MITK-Q) stock closed at a price of $10.08.
Small companies often have reporting and regulatory issues, but they are not always 'bad' in reality, but always bad in perception. In the most recent case, we think the reasons are benign. The SEC has made changes to its EDGAR public filing system, and MITK says it had issues resulting in problems transferring its files to the new system. Some other companies have also experienced such issues. EPS of 15c fell from 22c last year, but were ahead of 14c estimated. Revenue was in line with estimates but fell 5% to $37.7M. However, its year forecast was marginally reduced to $180M+, below estimates of $182.2M. A bit disappointing, but hardly a disaster here, really. The balance sheet is still decent and 20% growth is still expected.
Unlock Premium - Try 5i Free