Akamai Technologies (NASDAQ:AKAM) Receives Buy Rating from DA Davidson

Key Points

• DA Davidson reaffirmed its “buy” rating on Akamai Technologies and set a $185 price target, implying 59.71% upside from the previous close. Overall analyst sentiment remains mixed, with a consensus “hold” rating and average target of $147.71.
• Akamai’s latest quarterly results modestly exceeded expectations, with $1.59 in adjusted EPS versus $1.57 expected and revenue of $1.10 billion, up 5.4% year over year. The company guided for third-quarter 2026 EPS of $1.60–$1.80 and full-year EPS of $6.40–$7.05.
• The company’s reported $11.6 billion, seven-year cloud-services agreement with Anthropic could significantly strengthen its AI infrastructure business, though Akamai issued Anthropic warrants for up to roughly 5% of its common stock, creating potential shareholder dilution.

Akamai Technologies (NASDAQ:AKAM - Get Free Report)'s stock had its "buy" rating reissued by stock analysts at DA Davidson in a research report issued to clients and investors on Friday, Benzinga reports. They presently have a $185.00 price target on the technology infrastructure company's stock. DA Davidson's target price would indicate a potential upside of 59.71% from the company's previous close.

Several other brokerages also recently commented on AKAM. HSBC downgraded shares of Akamai Technologies from a "buy" rating to a "hold" rating and lowered their price objective for the company from $171.00 to $123.00 in a research note on Monday, August 10th. TD Cowen upped their price target on Akamai Technologies from $140.00 to $149.00 and gave the company a "hold" rating in a research report on Friday. JPMorgan Chase & Co. upped their price target on Akamai Technologies from $158.00 to $167.00 and gave the company a "neutral" rating in a research report on Friday. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Akamai Technologies in a research report on Monday. Finally, Citigroup lowered their price target on Akamai Technologies from $160.00 to $122.00 and set a "neutral" rating for the company in a research report on Friday, September 4th. Thirteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $147.71.

Akamai Technologies Price Performance

Shares of Akamai Technologies stock traded up $5.42 during trading on Friday, hitting $115.83. The stock had a trading volume of 19,954,425 shares, compared to its average volume of 4,567,051. Akamai Technologies has a 12 month low of $70.82 and a 12 month high of $165.45. The business's 50-day moving average is $113.10 and its 200 day moving average is $118.76. The firm has a market cap of $16.65 billion, a price-to-earnings ratio of 41.61, a P/E/G ratio of 5.49 and a beta of 0.63. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 1.23.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last announced its earnings results on Thursday, August 6th. The technology infrastructure company reported $1.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.02. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The company had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.09 billion. During the same period in the previous year, the business earned $1.73 earnings per share. The firm's quarterly revenue was up 5.4% compared to the same quarter last year. Akamai Technologies has set its Q3 2026 guidance at 1.600-1.800 EPS and its FY 2026 guidance at 6.400-7.050 EPS. As a group, sell-side analysts anticipate that Akamai Technologies will post 3.63 earnings per share for the current year.

Insider Buying and Selling

In other Akamai Technologies news, EVP Paul Joseph sold 3,100 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $105.63, for a total transaction of $327,453.00. Following the completion of the transaction, the executive vice president owned 28,472 shares of the company's stock, valued at approximately $3,007,497.36. This trade represents a 9.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Akamai Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in AKAM. Sarver Vrooman Wealth Advisors bought a new position in shares of Akamai Technologies during the fourth quarter valued at approximately $31,000. Root Financial Partners LLC increased its stake in shares of Akamai Technologies by 45.8% during the fourth quarter. Root Financial Partners LLC now owns 350 shares of the technology infrastructure company's stock valued at $31,000 after purchasing an additional 110 shares in the last quarter. Silvant Capital Management LLC bought a new position in shares of Akamai Technologies during the second quarter valued at approximately $32,000. Cedar Mountain Advisors LLC bought a new position in shares of Akamai Technologies during the first quarter valued at approximately $47,000. Finally, Persistent Asset Partners Ltd bought a new stake in shares of Akamai Technologies during the second quarter valued at approximately $54,000. Institutional investors own 94.28% of the company's stock.

Akamai Technologies News Summary

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Anthropic agreed to spend $11.6 billion over seven years on Akamai Cloud services to support CPU workloads. The relationship could expand by another $9 billion, creating a potential commitment of approximately $20 billion. The deal provides substantial long-term revenue visibility and strengthens Akamai’s position in the rapidly growing AI-computing market. Reuters article
• Positive Sentiment: The agreement will use Akamai’s distributed cloud infrastructure and software, supporting the company’s strategy of expanding beyond traditional content delivery and cybersecurity into cloud and AI infrastructure. Investors are repricing Akamai as an AI beneficiary rather than solely as a mature infrastructure provider. Investopedia article
• Positive Sentiment: Analyst sentiment provided additional support. DA Davidson reaffirmed a “buy” rating and set a $185 price target, while JPMorgan raised its target from $158 to $167 despite maintaining a “neutral” rating. Unusually heavy call-option activity—16,651 contracts, more than twice typical volume—also indicated increased bullish trading interest.
• Neutral Sentiment: Broader market conditions were supportive, with U.S. equity futures higher as crude prices and Treasury yields eased. However, the stock’s move was primarily linked to the Anthropic announcement rather than general market strength.
• Negative Sentiment: Akamai issued Anthropic a warrant for up to approximately 5% of its common stock, with roughly 2% expected to vest in connection with the initial commitment. Any future vesting could dilute existing shareholders. Investors must also monitor the capital spending and execution required to fulfill the large contract.

Akamai Technologies Company Profile

Akamai Technologies, Inc is a global technology company that provides cloud computing, content delivery and cybersecurity services. Its distributed platform helps businesses deliver websites, applications, software downloads, video and other digital content with improved speed, availability and scalability.

The company's offerings include content delivery and edge computing services, cloud infrastructure, web and application performance solutions, and security products designed to protect applications, application programming interfaces, networks and users from cyber threats.