Allot Communications Ltd logo

Allot Communications Ltd(ALLT)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
1-STAR RATING
Consider higher Upturn Star rating
BUY for 14 days
PROFIT SINCE LAST BUY
+0.96% ▲
LAST CLOSE
$8.39
10/09/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for methodology, assumptions, and limitations.

Upturn Advisory & Investor View for ALLT

10/09/2026: ALLT (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Allot Communications Ltd is a communications equipment and security firm that is currently in a challenging transition toward a software-based security-as-a-service model. Its main strength lies in its long-standing technical expertise in network intelligence and its deep integration with major telecommunications providers. The primary investment story rests on whether the company can successfully scale its subscription-based security business to offset declines in its legacy hardware revenue. Significant risks include intense competition from much larger, well-capitalized networking giants and a history of operational losses that place pressure on its cash position. The stock may best suit speculative investors who are closely monitoring the company's ability to achieve profitability and achieve sustained recurring revenue growth.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorWeak fitThe company is currently struggling to demonstrate consistent revenue growth.
Momentum investorWeak fitThe stock lacks positive momentum and is currently in a challenging structural downtrend.
Value investorMixed fitWhile valuation may look compressed, the lack of profitability makes a value case difficult to justify.
Dividend investorWeak fitThe company does not pay a dividend.
Low-risk investorWeak fitHigh volatility and operational uncertainty make this an unsuitable choice for low-risk portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock is prone to sharp swings based on quarterly results and strategic shifts.
Valuation riskMediumUncertainty regarding future profitability complicates accurate valuation.
Competition risk (Network Security)HighCompeting against massive, multi-faceted technology giants poses a permanent threat.
Business qualityMediumThe company is in a difficult, multi-year transition away from legacy products.
Dividend incomeLow / noneNo income is generated for shareholders.
Execution riskHighSuccessfully pivoting to a SaaS model for service providers is technically and commercially difficult.

Price Behavior

Downtrend
PRICE PATH

Downtrend

The stock has experienced a sustained decline in price over recent periods.

Highly Choppy
PRICE STABILITY

Highly Choppy

The stock has experienced frequent, large price swings that make its near-term movement less predictable.

Analysis of Past Performance

Type Stock
Historic Profit 47.58%
Avg. Invested days 28
Today’s Advisory Consider higher Upturn Star rating
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 3.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 10/09/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ALLT receives a 4-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
ALLT has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+163.1%) and strong cash generation (FCF margin 15.2%) are partially offset by soft profitability (net margin 3.6%), modest insider ownership of 1.50%.

Financial Health Rating

★★★★★
ALLT's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 45.1%). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is ALLT's strongest growth driver at +472.1% FY2025 versus FY2024 (strong, 5 stars). Revenue growth (+10.6%, solid) and earnings growth (+163.1%, strong) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 75.7% and approximately 65.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.50% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

Lynrock Lake LP 20.31%
Qvt Financial LP 11.35%
Kanen Wealth Management LLC 9.70%
Acadian Asset Management LLC 4.00%
Clal Insurance Enterprises Holdings Ltd 3.17%

Unit Economics (Per $1K Revenue)

★★★★★
ALLT generates approximately $711 of gross profit, $35 of operating income, and $152 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Moderate margins and strong cash conversion support a 3-star rating, while capital efficiency is weak.

Economic Dimensions

★★★★★
Effective Tax Rate: 24.97%

Quantitative Style Profile

★★★★★
ALLT has a liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

High VolatilitySmall / Mid Cap RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 398.37M USD
Price to earnings Ratio 36.73
1Y Target Price 13.48
Price to earnings Ratio 36.73
1Y Target Price 13.48
Volume (30-day avg) 295.0K shares
Beta 1.48
52 Weeks Range 6.12 - 11.92
Updated Date 10/09/2026
52 Weeks Range 6.12 - 11.92
Updated Date 10/09/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.22

How Company Makes Money

Business areaWhat it includesRetail investor read
Security-as-a-Service (SECaaS)Subscription-based security services sold to telecom operators.This is the primary growth engine and the focus of the company's future strategy.
Network IntelligenceSoftware and hardware for traffic management and DPI.This is the legacy business providing a steady, though declining, base of revenue.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

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Valuation

Trailing PE 36.73
Forward PE 37.17
Enterprise Value 321.82M
Price to Sales(TTM) 3.66
Enterprise Value 321.82M
Price to Sales(TTM) 3.66
Enterprise Value to Revenue 2.95
Enterprise Value to EBITDA 27.44
Shares Outstanding 49.30M
Shares Floating 32.04M
Shares Outstanding 49.30M
Shares Floating 32.04M
Percent Insiders 1.5
Percent Institutions 75.66

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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