Akamai Technologies (NASDAQ:AKAM) Shares Down 7.1% - Here's What Happened

Key Points

• Akamai shares fell 7.1% intraday to about $107.81 on Thursday, with trading volume (~2.17M shares) roughly 50% below the average session volume.
• The company beat quarterly estimates—$1.84 EPS vs. $1.75 expected and $1.09B revenue (up 7.4% YoY)—and issued FY2026 guidance of EPS 6.20–7.20 and Q1 guidance of 1.50–1.67.
• Analysts are mixed: MarketBeat shows an average rating of "Hold" and a mean price target of $110.79 while several firms recently raised targets to $120, and insiders sold roughly 65,954 shares (~$6.68M) over the last quarter.

Akamai Technologies, Inc. (NASDAQ:AKAM - Get Free Report)'s share price traded down 7.1% during mid-day trading on Thursday . The company traded as low as $107.36 and last traded at $107.8060. 2,171,148 shares traded hands during trading, a decline of 50% from the average session volume of 4,380,721 shares. The stock had previously closed at $116.00.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Susquehanna increased their target price on shares of Akamai Technologies from $105.00 to $120.00 and gave the stock a "positive" rating in a research report on Friday, February 20th. Raymond James Financial set a $120.00 target price on shares of Akamai Technologies in a research report on Thursday, March 12th. Scotiabank increased their target price on shares of Akamai Technologies from $105.00 to $120.00 and gave the stock a "sector outperform" rating in a research report on Friday, February 20th. Royal Bank Of Canada increased their target price on shares of Akamai Technologies from $90.00 to $100.00 and gave the stock a "sector perform" rating in a research report on Friday, February 20th. Finally, Piper Sandler increased their target price on shares of Akamai Technologies from $97.00 to $114.00 and gave the stock a "neutral" rating in a research report on Tuesday. Nine analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Akamai Technologies has an average rating of "Hold" and an average price target of $110.79.

Akamai Technologies Trading Down 4.9%

The business's fifty day simple moving average is $105.29 and its 200 day simple moving average is $91.44. The company has a current ratio of 2.36, a quick ratio of 2.36 and a debt-to-equity ratio of 0.82. The stock has a market cap of $16.00 billion, a P/E ratio of 35.71, a price-to-earnings-growth ratio of 3.98 and a beta of 0.59.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last issued its quarterly earnings data on Thursday, February 19th. The technology infrastructure company reported $1.84 EPS for the quarter, topping analysts' consensus estimates of $1.75 by $0.09. Akamai Technologies had a net margin of 10.74% and a return on equity of 13.86%. The firm had revenue of $1.09 billion for the quarter, compared to analyst estimates of $1.08 billion. During the same quarter in the prior year, the firm earned $1.66 EPS. The company's revenue was up 7.4% on a year-over-year basis. Akamai Technologies has set its FY 2026 guidance at 6.200-7.200 EPS and its Q1 2026 guidance at 1.500-1.670 EPS. As a group, analysts expect that Akamai Technologies, Inc. will post 4.6 EPS for the current year.

Insider Activity

In other Akamai Technologies news, Director Madhu Ranganathan sold 3,131 shares of the stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $102.00, for a total transaction of $319,362.00. Following the sale, the director owned 9,160 shares of the company's stock, valued at $934,320. This represents a 25.47% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Anthony P. Williams sold 15,000 shares of the firm's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $104.29, for a total transaction of $1,564,350.00. Following the completion of the transaction, the executive vice president directly owned 22,064 shares in the company, valued at $2,301,054.56. This trade represents a 40.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 65,954 shares of company stock worth $6,679,721. 2.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of AKAM. Whittier Trust Co. of Nevada Inc. boosted its stake in shares of Akamai Technologies by 295.3% in the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 336 shares of the technology infrastructure company's stock valued at $26,000 after purchasing an additional 251 shares during the last quarter. TD Waterhouse Canada Inc. boosted its stake in shares of Akamai Technologies by 130.0% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 345 shares of the technology infrastructure company's stock valued at $26,000 after purchasing an additional 195 shares during the last quarter. Smartleaf Asset Management LLC boosted its stake in shares of Akamai Technologies by 566.7% in the 3rd quarter. Smartleaf Asset Management LLC now owns 340 shares of the technology infrastructure company's stock valued at $26,000 after purchasing an additional 289 shares during the last quarter. JFS Wealth Advisors LLC boosted its stake in shares of Akamai Technologies by 626.2% in the 4th quarter. JFS Wealth Advisors LLC now owns 305 shares of the technology infrastructure company's stock valued at $27,000 after purchasing an additional 263 shares during the last quarter. Finally, Wolff Wiese Magana LLC boosted its stake in shares of Akamai Technologies by 497.0% in the 3rd quarter. Wolff Wiese Magana LLC now owns 400 shares of the technology infrastructure company's stock valued at $30,000 after purchasing an additional 333 shares during the last quarter. Institutional investors own 94.28% of the company's stock.

About Akamai Technologies

Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.

The company's core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.

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