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Hawk’s Nest

Allot Unusual Bullish Options Activity as Transitions to Network Security Company

by | Jun 8, 2021

Allot (ALLT) traded 48X daily calls on 6/7 as 2850 July $20 calls opened at $0.85 offers, a name that has previously seen 2000 September $15 short puts open, 1670 November $20 calls bought, 2675 November $15 short puts open, and 2660 December $15 short puts open. ALLT has a strong technical set-up flagging under the early April highs with room to run to $23 on a breakout. ALLT is based in Israel, a place where we have seen unusual options activity lead to M&A deals in the past. ALLT is a provider of leading innovative network intelligence and security solutions for mobile and fixed service providers as well as enterprises worldwide. Its solutions are deployed globally for network and application analytics, traffic control and shaping, network-based security including mobile security, distributed denial of service (DDoS) protection, IoT security, and more. Its industry-leading network-based security as a service solution has achieved over 50% penetration with some service providers and is already used by over 20 million subscribers globally. ALLT has a global and diverse customer base composed of mobile and fixed broadband service providers, cable operators, satellite service providers, private networks, data centers, governments, and enterprises such as financial and educational institutions. ALLT has a market cap of $667M and trades 3.9X EV/Sales with revenues seen growing 8.2% in 2021 and 13.8% in 2022 with acceleration starting Q3 this year and follows a year of 23.5% growth. ALLT sees a major opportunity in cybersecurity to protect consumers and small businesses. ALLT revenues were 17% Security in 2020 and it sees moving to 55% by 2025 with accelerating recurring revenues. DISH recently selected ALLT to provide UPP on cloud-native OpenRAN-based 5G networks. Analysts have an average target of $20.50 with short interest low at 1.2% of the float.