Royal Bank Of Canada Reaffirms "Sector Perform" Rating for Akamai Technologies (NASDAQ:AKAM)

Akamai Technologies (NASDAQ:AKAM - Get Free Report)'s stock had its "sector perform" rating reaffirmed by analysts at Royal Bank Of Canada in a research note issued to investors on Friday, Benzinga reports. They currently have a $135.00 price objective on the technology infrastructure company's stock. Royal Bank Of Canada's price target suggests a potential upside of 13.15% from the company's current price.

Several other research analysts have also recently issued reports on the stock. TD Cowen upped their target price on shares of Akamai Technologies from $140.00 to $149.00 and gave the company a "hold" rating in a report on Friday. Evercore restated an "outperform" rating on shares of Akamai Technologies in a report on Friday. Zacks Research upgraded shares of Akamai Technologies from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Guggenheim upped their price target on shares of Akamai Technologies from $190.00 to $225.00 and gave the company a "buy" rating in a research report on Friday. Finally, Bank of America upped their price target on shares of Akamai Technologies from $175.00 to $185.00 and gave the company a "buy" rating in a research report on Friday. Thirteen research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Akamai Technologies currently has a consensus rating of "Hold" and an average price target of $147.71.

Akamai Technologies Stock Up 8.1%

NASDAQ AKAM traded up $8.90 on Friday, hitting $119.31. 17,406,609 shares of the stock were exchanged, compared to its average volume of 4,548,175. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 1.23. Akamai Technologies has a fifty-two week low of $70.82 and a fifty-two week high of $165.45. The company has a market cap of $17.15 billion, a PE ratio of 42.95, a PEG ratio of 5.49 and a beta of 0.63. The company has a 50-day moving average price of $113.10 and a 200-day moving average price of $118.76.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology infrastructure company reported $1.59 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 analysts' expectations of $1.09 billion. During the same quarter in the previous year, the business posted $1.73 EPS. The firm's revenue was up 5.4% on a year-over-year basis. 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. Sell-side analysts anticipate that Akamai Technologies will post 3.63 EPS for the current fiscal year.

Insider Activity

In other Akamai Technologies news, EVP Paul Joseph sold 3,100 shares of the firm's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $105.63, for a total transaction of $327,453.00. Following the sale, the executive vice president directly owned 28,472 shares of the company's stock, valued at $3,007,497.36. This trade represents a 9.82% decrease in their position. The transaction 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 corporate insiders.

Institutional Investors Weigh In On Akamai Technologies

Several hedge funds have recently modified their holdings of AKAM. QRG Capital Management Inc. boosted its stake in shares of Akamai Technologies by 1,716.7% during the 2nd quarter. QRG Capital Management Inc. now owns 32,610 shares of the technology infrastructure company's stock worth $3,855,000 after purchasing an additional 30,815 shares during the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in shares of Akamai Technologies by 114.7% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,073 shares of the technology infrastructure company's stock worth $718,000 after acquiring an additional 3,244 shares during the period. Sequoia Financial Advisors LLC lifted its holdings in shares of Akamai Technologies by 263.5% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 98,149 shares of the technology infrastructure company's stock worth $11,602,000 after acquiring an additional 71,147 shares during the period. Tidal Investments LLC lifted its holdings in shares of Akamai Technologies by 328.9% during the 2nd quarter. Tidal Investments LLC now owns 181,197 shares of the technology infrastructure company's stock worth $21,419,000 after acquiring an additional 138,950 shares during the period. Finally, Capital Analysts LLC lifted its holdings in shares of Akamai Technologies by 71.0% during the 2nd quarter. Capital Analysts LLC now owns 2,957 shares of the technology infrastructure company's stock worth $350,000 after acquiring an additional 1,228 shares during the period. 94.28% of the stock is owned by institutional investors and hedge funds.

Key Akamai Technologies News

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

• Positive Sentiment: Anthropic committed to pay Akamai $11.6 billion over seven years for access to Akamai Cloud’s distributed infrastructure and software, primarily to support growing CPU workloads. The agreement also allows for up to an additional $9 billion, creating a potential total commitment of approximately $20 billion. Reuters article
• Positive Sentiment: The contract provides substantial long-term revenue visibility and could accelerate Akamai’s transition toward higher-growth AI and cloud infrastructure markets, where demand for computing capacity is expanding rapidly. Invezz article
• Positive Sentiment: The announcement prompted a sharp rally in Akamai shares as analysts and investors reassessed the company’s growth prospects and strategic position in AI infrastructure. 247WallSt article
• Neutral Sentiment: Akamai issued Anthropic a warrant for up to approximately 5% of its common stock; about 2% is expected to vest in connection with the initial commitment, with additional vesting tied to expansion of the relationship. Akamai press release
• Negative Sentiment: The warrant could dilute existing shareholders, while fulfilling the agreement may require significant investment and carries execution and customer-concentration risks. Akamai’s valuation—near 40 times earnings—also leaves less room for disappointment if AI-related growth takes longer than expected.

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.