Akamai Technologies (NASDAQ:AKAM) Shares Gap Up - Time to Buy?

Key Points

• Akamai shares gapped up ahead of trading, opening at $118.02 after closing at $112.73, and were last traded around $114.87, up about 2.5% on the day.
• Analysts have grown more optimistic on the stock, with several firms raising price targets; the consensus rating is now Hold with an average target price of $145.29, though ratings remain mixed.
• The company recently met earnings expectations, reporting $1.61 EPS and $1.07 billion in revenue, while also issuing FY 2026 guidance of $6.40 to $7.15 EPS.

Akamai Technologies, Inc. (NASDAQ:AKAM - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $112.73, but opened at $118.02. Akamai Technologies shares last traded at $114.8680, with a volume of 454,516 shares.

Analysts Set New Price Targets

AKAM has been the subject of a number of research reports. Scotiabank raised their target price on Akamai Technologies from $120.00 to $180.00 and gave the company a "sector outperform" rating in a research note on Friday, May 8th. Bank of America upgraded shares of Akamai Technologies from a "neutral" rating to a "buy" rating and upped their price target for the stock from $130.00 to $175.00 in a research report on Wednesday, May 13th. Morgan Stanley increased their price objective on shares of Akamai Technologies from $120.00 to $165.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Evercore started coverage on shares of Akamai Technologies in a research report on Tuesday, April 14th. They issued an "outperform" rating and a $130.00 price objective for the company. Finally, The Goldman Sachs Group boosted their target price on shares of Akamai Technologies from $76.00 to $87.00 and gave the stock a "sell" rating in a research note on Friday, May 8th. Twelve investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Akamai Technologies currently has an average rating of "Hold" and a consensus target price of $145.29.

Akamai Technologies Stock Up 2.5%

The business's fifty day simple moving average is $131.97 and its 200 day simple moving average is $110.78. The stock has a market cap of $16.80 billion, a price-to-earnings ratio of 38.81, a price-to-earnings-growth ratio of 3.54 and a beta of 0.63. The company has a current ratio of 2.06, a quick ratio of 2.06 and a debt-to-equity ratio of 0.84.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The technology infrastructure company reported $1.61 earnings per share for the quarter, meeting analysts' consensus estimates of $1.61. Akamai Technologies had a return on equity of 12.96% and a net margin of 10.20%.The company had revenue of $1.07 billion for the quarter, compared to the consensus estimate of $1.07 billion. During the same quarter in the prior year, the business posted $1.70 EPS. The firm's quarterly revenue was up 5.8% on a year-over-year basis. Akamai Technologies has set its FY 2026 guidance at 6.400-7.150 EPS and its Q2 2026 guidance at 1.450-1.650 EPS. Equities analysts forecast that Akamai Technologies, Inc. will post 3.93 earnings per share for the current fiscal year.

Insider Activity

In other Akamai Technologies news, EVP Kim Salem-Jackson sold 2,300 shares of the firm's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $135.57, for a total transaction of $311,811.00. Following the transaction, the executive vice president owned 59,210 shares in the company, valued at approximately $8,027,099.70. This trade represents a 3.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Robert Blumofe sold 243 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $129.41, for a total value of $31,446.63. Following the transaction, the chief technology officer owned 31,006 shares of the company's stock, valued at $4,012,486.46. The trade was a 0.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On Akamai Technologies

Large investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted its position in shares of Akamai Technologies by 3.1% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,356 shares of the technology infrastructure company's stock worth $271,000 after purchasing an additional 70 shares during the period. Rexford Capital Inc. boosted its stake in shares of Akamai Technologies by 1.9% during the 4th quarter. Rexford Capital Inc. now owns 5,106 shares of the technology infrastructure company's stock valued at $445,000 after purchasing an additional 93 shares in the last quarter. Assetmark Inc. increased its position in shares of Akamai Technologies by 31.8% during the fourth quarter. Assetmark Inc. now owns 444 shares of the technology infrastructure company's stock valued at $39,000 after buying an additional 107 shares during the period. Root Financial Partners LLC raised its stake in Akamai Technologies by 45.8% in the fourth quarter. Root Financial Partners LLC now owns 350 shares of the technology infrastructure company's stock worth $31,000 after buying an additional 110 shares in the last quarter. Finally, Perigon Wealth Management LLC raised its stake in Akamai Technologies by 2.1% in the fourth quarter. Perigon Wealth Management LLC now owns 5,502 shares of the technology infrastructure company's stock worth $480,000 after buying an additional 115 shares in the last quarter. Institutional investors own 94.28% of the company's stock.

Akamai Technologies Company Profile

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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