ALLT Should I Buy
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Allot Ltd (ALLT) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive growth in recurring revenue, and increasing hedge fund interest make it a compelling long-term opportunity despite current technical weakness.
The technical indicators for ALLT are bearish. The MACD is below zero and negatively contracting, RSI is at 26.178 (neutral zone but close to oversold), and moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). Key support is at $6.351, with resistance at $6.698. Short-term price action may remain weak.
Hedge funds are increasing their positions in ALLT, with a 114.85% increase in buying activity over the last quarter.
Strong Q4 2025 financial results, including a 14% YoY revenue increase and a 1104% YoY net income increase.
Cybersecurity as a Service revenue surged 70% YoY in Q4
Recurring revenue accounted for 62% of total revenue, with 2026 guidance indicating further growth.
The company has $88 million in cash and no debt, providing financial stability.
The stock is in a bearish technical trend, with the price down 3.99% in the regular market session.
Analyst price targets are mixed, with one firm lowering its target due to market contraction concerns.
Broader market weakness, as indicated by the S&P 500's 1.52% decline.
Allot Ltd reported strong Q4 2025 financials, with revenue up 13.98% YoY to $28.39 million, net income up 1104.15% YoY to $2.9 million, and EPS up 500% YoY to $0.06. Gross margin improved to 71.54%, up 4.48% YoY. The company ended 2025 with $88 million in cash and no debt, showcasing robust financial health.
Analysts are generally positive on ALLT. Northland raised its price target to $19, citing the extensibility of Allot's SECaaS platform and strong long-term growth potential. TD Cowen lowered its target to $11 due to market contraction but highlighted solid Q4 results and an expanding pipeline. The overall sentiment is optimistic, with Allot being considered a top pick by Northland.
