Akamai Technologies (NASDAQ:AKAM) Cut to Sell (D+) at Weiss Ratings

Key Points

• Akamai Technologies has been downgraded from a "hold" to a "sell" rating by Weiss Ratings, reflecting a significant shift in analyst sentiment.
• The stock is currently trading at approximately $76.69 and has a consensus target price of $92.39, indicating potential for growth despite the downgrade.
• Insider activity has seen executives selling shares, with a notable transaction where the CTO sold 3,000 shares valued at approximately $231,000, reflecting a decrease in their ownership.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) was downgraded by stock analysts at Weiss Ratings from a "hold (c-)" rating to a "sell (d+)" rating in a research note issued to investors on Wednesday,Weiss Ratings reports.

A number of other research analysts also recently commented on the company. Wall Street Zen raised Akamai Technologies from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. The Goldman Sachs Group assumed coverage on shares of Akamai Technologies in a report on Wednesday, August 13th. They issued a "sell" rating and a $67.00 target price for the company. Raymond James Financial reduced their price target on shares of Akamai Technologies from $110.00 to $84.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Piper Sandler reduced their price target on shares of Akamai Technologies from $88.00 to $83.00 and set a "neutral" rating on the stock in a research note on Friday, August 8th. Finally, Morgan Stanley downgraded shares of Akamai Technologies from an "equal weight" rating to an "underweight" rating and set a $85.00 price target on the stock. in a research note on Tuesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, nine have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $92.39.

Akamai Technologies Price Performance

AKAM stock traded up $0.09 during midday trading on Wednesday, reaching $76.69. The company had a trading volume of 448,689 shares, compared to its average volume of 2,288,301. The company has a market capitalization of $11.00 billion, a price-to-earnings ratio of 27.19, a price-to-earnings-growth ratio of 3.75 and a beta of 0.75. The stock has a 50 day moving average price of $76.30 and a 200-day moving average price of $77.47. Akamai Technologies has a 1-year low of $67.51 and a 1-year high of $106.80. The company has a debt-to-equity ratio of 0.92, a current ratio of 2.31 and a quick ratio of 2.31.

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

Insider Activity

In other news, CTO Robert Blumofe sold 3,000 shares of the company's stock in a transaction that occurred on Friday, August 22nd. The stock was 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 transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Paul C. Joseph sold 5,000 shares of the company's stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $76.65, for a total value of $383,250.00. Following the completion of the transaction, the executive vice president directly owned 27,349 shares of the company's stock, valued at $2,096,300.85. This represents a 15.46% decrease in their position. The disclosure for this sale can be found here. Insiders sold 17,000 shares of company stock valued at $1,305,990 over the last quarter. 2.00% of the stock is owned by company insiders.

Institutional Trading of Akamai Technologies

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Beverly Hills Private Wealth LLC grew its holdings in shares of Akamai Technologies by 4.7% during the first quarter. Beverly Hills Private Wealth LLC now owns 2,828 shares of the technology infrastructure company's stock worth $228,000 after purchasing an additional 126 shares during the last quarter. Opes Wealth Management LLC grew its holdings in shares of Akamai Technologies by 2.7% during the first quarter. Opes Wealth Management LLC now owns 4,872 shares of the technology infrastructure company's stock worth $392,000 after purchasing an additional 128 shares during the last quarter. UMB Bank n.a. grew its holdings in shares of Akamai Technologies by 50.8% during 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. Amalgamated Bank grew its holdings in shares of Akamai Technologies by 0.5% during the first quarter. Amalgamated Bank now owns 29,080 shares of the technology infrastructure company's stock worth $2,341,000 after purchasing an additional 139 shares during the last quarter. Finally, Horizon Investments LLC grew its holdings in shares of Akamai Technologies by 7.2% during the first quarter. Horizon Investments LLC now owns 2,220 shares of the technology infrastructure company's stock worth $179,000 after purchasing an additional 149 shares during the last quarter. Institutional investors and hedge funds own 94.28% of the company's stock.

Akamai Technologies Company Profile

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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