Mitek Systems' Intrinsic Value Potentially 68% Above Share Price

Mitek Systems' intrinsic value is estimated to be $16.38, with the stock being 41% undervalued based on its current share price of $9.72. The analyst price target of $13.00 is 21% less than the estimated fair value.

Mitek Systems (NASDAQ:MITK) has seen a significant upgrade in its stock rating from Wall Street Zen, which recently elevated the stock from a "buy" to a "strong buy" rating [1]. This move comes after the software maker's latest earnings report, where it posted an earnings per share (EPS) of $0.36, beating analysts' consensus estimates by $0.10 [1]. The company's stock has been performing well, trading up $0.13 to hit $9.81 on Friday, with a trading volume of 390,975 shares [1].

Insider activity has also been notable, with Michael E. Diamond selling 70,352 shares of Mitek Systems' stock at an average price of $9.77 [1]. This sale represents a 23.17% decrease in Diamond's ownership of the stock. Institutional investors have shown strong interest in Mitek Systems, with several hedge funds and investment companies increasing their stakes in the company [1].

Analysts have estimated Mitek Systems' intrinsic value to be $16.38, suggesting that the stock is currently undervalued by 41% based on its current share price of $9.72 [2]. The analyst price target of $13.00 is 21% less than the estimated fair value. This discrepancy indicates a potential opportunity for investors to consider Mitek Systems as a long-term investment.

Mitek Systems provides mobile image capture and digital identity verification solutions worldwide, with products like Mobile Deposit, Mobile Verify, and Mobile Fill. The company has shown strong growth in its revenue, with a 10.4% increase compared to the same quarter last year [1].

While Mitek Systems has a Moderate Buy rating among analysts, it is not among the top-rated stocks recommended by top analysts [1]. However, its strong fundamentals, undervalued stock price, and recent upgrades make it an attractive option for investors.

References:
[1] https://www.marketbeat.com/instant-alerts/mitek-systems-nasdaqmitk-raised-to-strong-buy-at-wall-street-zen-2025-06-21/
[2] Internal analysis based on provided materials