Akamai Technologies (NASDAQ:AKAM) Releases Quarterly Earnings Results, Beats Expectations By $0.18 EPS

Key Points

• Akamai Technologies reported earnings of $1.73 EPS for the quarter, exceeding expectations by $0.18, with year-over-year revenue growth of 6.5%.
• The company updated its FY 2025 guidance to a range of 6.600-6.800 EPS and its Q3 2025 guidance to 1.620-1.660 EPS.
• In recent days, analysts have issued mixed ratings, with a consensus target price of $97.42 and a majority of analysts maintaining a "hold" rating.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) posted its quarterly earnings results on Thursday. The technology infrastructure company reported $1.73 earnings per share for the quarter, beating the consensus estimate of $1.55 by $0.18, Briefing.com reports. Akamai Technologies had a net margin of 10.40% and a return on equity of 14.05%. The firm had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the previous year, the firm posted $1.58 earnings per share. The company's revenue was up 6.5% on a year-over-year basis. Akamai Technologies updated its FY 2025 guidance to 6.600-6.800 EPS and its Q3 2025 guidance to 1.620-1.660 EPS.

Akamai Technologies Stock Performance

Shares of NASDAQ AKAM traded down $4.23 during mid-day trading on Friday, hitting $70.53. The stock had a trading volume of 5,400,278 shares, compared to its average volume of 1,658,531. The company has a debt-to-equity ratio of 0.52, a quick ratio of 1.18 and a current ratio of 1.18. The company has a 50 day moving average of $78.12 and a two-hundred day moving average of $81.58. Akamai Technologies has a twelve month low of $67.51 and a twelve month high of $106.80. The firm has a market cap of $10.31 billion, a PE ratio of 25.01, a PEG ratio of 2.36 and a beta of 0.76.

Insider Buying and Selling at Akamai Technologies

In related news, EVP Paul C. Joseph sold 5,000 shares of the company's stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $77.74, for a total value of $388,700.00. Following the transaction, the executive vice president directly owned 32,349 shares of the company's stock, valued at $2,514,811.26. This represents a 13.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Kim Salem-Jackson sold 13,157 shares of the company's stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $76.33, for a total value of $1,004,273.81. Following the completion of the transaction, the executive vice president directly owned 43,575 shares in the company, valued at approximately $3,326,079.75. The trade was a 23.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Akamai Technologies

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp grew its position in Akamai Technologies by 35.2% during the 1st quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company's stock worth $88,000 after purchasing an additional 283 shares during the period. United Services Automobile Association acquired a new stake in Akamai Technologies during the 1st quarter worth about $266,000. Brighton Jones LLC grew its position in Akamai Technologies by 101.4% during the 4th quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company's stock worth $384,000 after purchasing an additional 2,022 shares during the period. Finally, Empowered Funds LLC grew its position in Akamai Technologies by 73.0% during the 1st quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company's stock worth $574,000 after purchasing an additional 3,010 shares during the period. 94.28% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently weighed in on AKAM. Wall Street Zen raised shares of Akamai Technologies from a "hold" rating to a "buy" rating in a research note on Saturday. Morgan Stanley downgraded shares of Akamai Technologies from an "equal weight" rating to an "underweight" rating and set a $85.00 price objective for the company. in a research note on Tuesday. Piper Sandler reduced their price objective on shares of Akamai Technologies from $88.00 to $83.00 and set a "neutral" rating for the company in a research note on Friday. Scotiabank reduced their price objective on shares of Akamai Technologies from $105.00 to $95.00 and set a "sector outperform" rating for the company in a research note on Friday. Finally, Raymond James Financial reduced their price objective on shares of Akamai Technologies from $110.00 to $84.00 and set an "outperform" rating for the company in a research note on Friday. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, nine have assigned a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Akamai Technologies currently has a consensus rating of "Hold" and a consensus target price of $97.42.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.