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 24 days
PROFIT SINCE LAST BUY
+7.58% ▲
LAST CLOSE
$8.94
10/23/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
  • ALL
  • 1Y
  • 1M
  • 1W
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • PASS (Skip)
Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for ALLT

10/23/2026: ALLT (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Allot Communications Ltd is a provider of network intelligence and cybersecurity solutions, primarily serving telecommunication service providers. Its main strengths lie in deep packet inspection technology and established carrier relationships, which allow it to integrate security services directly into network traffic. The company is currently focused on growing its recurring revenue through security-as-a-service offerings as its primary strategic story. However, it faces risks from intense competition in network security, reliance on large but slow-moving clients, and the need for improved financial execution. The stock may suit investors interested in the telecommunications infrastructure ecosystem, provided they monitor contract wins and the transition to recurring revenue streams.

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 investorMixed fitThe company is undergoing a pivot toward recurring revenue, which offers potential but remains subject to execution risk.
Momentum investorWeak fitThe stock has historically lacked the consistent upward price momentum typically sought by this style.
Value investorMixed fitCurrent valuations may appear attractive, but require confidence in the stabilization of the core business.
Dividend investorWeak fitThe company does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorWeak fitThe volatility of the telecommunications sector and specific company execution risks create a higher risk profile.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighThe stock has experienced significant price swings linked to earnings surprises and sector-wide sentiment.
Valuation riskMediumValuation depends heavily on future growth projections that remain sensitive to telco spending trends.
Competition risk (Infrastructure providers)HighLarge network equipment vendors can bundle security features, squeezing the independent market.
Business qualityMediumThe business model is shifting to recurring revenue but has historically faced challenges in maintaining consistent margins.
Dividend incomeLow / noneThe company retains all earnings to reinvest, providing no income for shareholders.
Execution riskHighSuccessful growth depends on the timely adoption of security products by large, slow-moving telecommunications partners.

Price Behavior

Flat / Range-Bound
PRICE PATH

Flat / Range-Bound

The stock price has been trading within a narrow range with minimal directional movement.

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 57.26%
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 10/23/2026

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 1.91%.

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 75.9% and approximately 65.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 1.91% 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 439.29M USD
Price to earnings Ratio 40.5
1Y Target Price 13.48
Price to earnings Ratio 40.5
1Y Target Price 13.48
Volume (30-day avg) 574.7K shares
Beta 1.48
52 Weeks Range 6.12 - 11.92
Updated Date 10/23/2026
52 Weeks Range 6.12 - 11.92
Updated Date 10/23/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.22

How Company Makes Money

Business areaWhat it includesRetail investor read
Service Provider SolutionsDPI platforms, traffic management, and network security software sold to telcos.Revenue is generated through software licenses and support, with an increasing portion from recurring subscriptions.

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 40.5
Forward PE 37.17
Enterprise Value 321.82M
Price to Sales(TTM) 4.03
Enterprise Value 321.82M
Price to Sales(TTM) 4.03
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 1.91
Percent Institutions 75.86

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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