Akamai Technologies' (AKAM) "Buy" Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed a "Buy" rating on Akamai Technologies (NASDAQ: AKAM) with a price target of $115.00, indicating a potential upside of 57.02% from the current price.
• Several other research firms have adjusted their ratings on Akamai, with a range of target prices from $67.00 to $110.00, reflecting mixed sentiment among analysts.
• Akamai reported an earnings per share (EPS) of $1.73 for the last quarter, which exceeded analysts' expectations, alongside revenue growth of 6.5% year-over-year.

Akamai Technologies (NASDAQ:AKAM - Get Free Report)'s stock had its "buy" rating reissued by investment analysts at DA Davidson in a note issued to investors on Thursday,Benzinga reports. They currently have a $115.00 price objective on the technology infrastructure company's stock. DA Davidson's price objective suggests a potential upside of 57.02% from the company's current price.

A number of other research firms also recently weighed in on AKAM. Raymond James Financial cut their target price on Akamai Technologies from $110.00 to $84.00 and set an "outperform" rating for the company in a research report on Friday, August 8th. Morgan Stanley downgraded shares of Akamai Technologies from an "equal weight" rating to an "underweight" rating and set a $85.00 price objective on the stock. in a research note on Tuesday, August 5th. The Goldman Sachs Group initiated coverage on shares of Akamai Technologies in a report on Wednesday, August 13th. They set a "sell" rating and a $67.00 price target for the company. Scotiabank decreased their price objective on shares of Akamai Technologies from $105.00 to $95.00 and set a "sector outperform" rating on the stock in a research note on Friday, August 8th. Finally, Piper Sandler cut their target price on Akamai Technologies from $88.00 to $83.00 and set a "neutral" rating for the company in a research note on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, nine have assigned a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, Akamai Technologies presently has an average rating of "Hold" and an average target price of $93.58.

Akamai Technologies Stock Performance

Akamai Technologies stock traded down $0.43 during midday trading on Thursday, hitting $73.24. The company's stock had a trading volume of 215,764 shares, compared to its average volume of 2,261,666. The company has a debt-to-equity ratio of 0.92, a current ratio of 2.31 and a quick ratio of 2.31. The company has a market cap of $10.50 billion, a price-to-earnings ratio of 25.98, a PEG ratio of 3.54 and a beta of 0.75. Akamai Technologies has a 1-year low of $67.51 and a 1-year high of $106.80. The company has a 50-day moving average price of $76.19 and a two-hundred day moving average price of $77.20.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last announced its earnings results on Thursday, August 7th. The technology infrastructure company reported $1.73 EPS for the quarter, topping the consensus estimate of $1.55 by $0.18. Akamai Technologies had a net margin of 10.40% and a return on equity of 14.26%. The company had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $1.02 billion. During the same period last year, the firm earned $1.58 earnings per share. The business's revenue for the quarter was up 6.5% on a year-over-year basis. Akamai Technologies has set its FY 2025 guidance at 6.600-6.800 EPS. Q3 2025 guidance at 1.620-1.660 EPS. As a group, sell-side analysts predict that Akamai Technologies will post 4.6 earnings per share for the current year.

Insider Transactions at Akamai Technologies

In other Akamai Technologies news, EVP Aaron Ahola sold 4,000 shares of the company's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $75.76, for a total value of $303,040.00. Following the completion of the transaction, the executive vice president owned 21,211 shares of the company's stock, valued at $1,606,945.36. This represents a 15.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CTO Robert Blumofe sold 3,000 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $77.00, for a total value of $231,000.00. Following the completion of the transaction, the chief technology officer owned 27,910 shares of the company's stock, valued at $2,149,070. This represents a 9.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 12,000 shares of company stock worth $917,290. Corporate insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. WPG Advisers LLC bought a new stake in Akamai Technologies during the 1st quarter worth approximately $27,000. UMB Bank n.a. grew its stake in shares of Akamai Technologies by 50.8% in the second quarter. UMB Bank n.a. now owns 395 shares of the technology infrastructure company's stock worth $32,000 after purchasing an additional 133 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new stake in Akamai Technologies in the second quarter valued at $32,000. MUFG Securities EMEA plc bought a new position in Akamai Technologies during the 2nd quarter worth $35,000. Finally, Assetmark Inc. lifted its holdings in Akamai Technologies by 198.1% during the 2nd quarter. Assetmark Inc. now owns 474 shares of the technology infrastructure company's stock worth $38,000 after buying an additional 315 shares during the period. Institutional investors own 94.28% of the company's stock.

About Akamai Technologies

Akamai Technologies, Inc provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance.

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