Citigroup Issues Pessimistic Forecast for Akamai Technologies (NASDAQ:AKAM) Stock Price

Key Points

• Citigroup cut Akamai Technologies’ price target from $160 to $122 while maintaining a “neutral” rating, implying 16.13% upside from the stock’s reported $105.06 price.
• Analyst sentiment is mixed: Akamai has an overall “Hold” rating and an average price target of $141.62, based on 13 Buy, nine Hold, and two Sell ratings.
• Akamai beat quarterly expectations with $1.59 in adjusted EPS versus a $1.57 consensus estimate and $1.10 billion in revenue, up 5.4% year over year; institutional investors own 94.28% of the stock.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) had its price objective decreased by equities researchers at Citigroup from $160.00 to $122.00 in a research note issued on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the technology infrastructure company's stock. Citigroup's target price would suggest a potential upside of 16.13% from the company's current price.

A number of other research analysts have also recently commented on the stock. Guggenheim raised their price target on shares of Akamai Technologies from $181.00 to $190.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Raymond James Financial upped their price objective on Akamai Technologies from $140.00 to $170.00 in a research note on Monday, May 11th. Morgan Stanley increased their target price on Akamai Technologies from $120.00 to $165.00 and gave the stock an "overweight" rating in a report on Thursday, May 14th. Susquehanna cut their target price on Akamai Technologies from $175.00 to $140.00 and set a "positive" rating for the company in a research report on Monday, August 10th. Finally, Zacks Research raised Akamai Technologies from a "strong sell" rating to a "hold" rating in a research note on Monday, July 13th. Thirteen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $141.62.

Akamai Technologies Stock Performance

AKAM traded down $1.44 during trading on Friday, reaching $105.06. 514,654 shares of the company's stock were exchanged, compared to its average volume of 4,512,366. Akamai Technologies has a fifty-two week low of $70.82 and a fifty-two week high of $165.45. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 1.23. The business has a 50 day moving average price of $116.13 and a 200 day moving average price of $118.07. The company has a market capitalization of $15.10 billion, a P/E ratio of 37.83, a PEG ratio of 4.83 and a beta of 0.63.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The technology infrastructure company reported $1.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.02. The firm had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.09 billion. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The business's revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.73 EPS. 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, analysts predict that Akamai Technologies will post 3.67 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Robert Blumofe sold 243 shares of the business's stock in a transaction that occurred on 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 directly owned 31,006 shares of the company's stock, valued at $4,012,486.46. The trade was a 0.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kim Salem-Jackson sold 2,300 shares of the stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $135.57, for a total value of $311,811.00. Following the sale, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Akamai Technologies

Several large investors have recently made changes to their positions in AKAM. Brighton Jones LLC raised its position in Akamai Technologies by 101.4% in 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 last quarter. Jones Financial Companies Lllp increased its stake in shares of Akamai Technologies by 35.2% in the 1st quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company's stock valued at $88,000 after buying an additional 283 shares during the period. United Services Automobile Association acquired a new stake in shares of Akamai Technologies in the 1st quarter valued at $266,000. Empowered Funds LLC raised its position in shares of Akamai Technologies by 73.0% during the first quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company's stock worth $574,000 after acquiring an additional 3,010 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in shares of Akamai Technologies by 152.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,163 shares of the technology infrastructure company's stock worth $93,000 after acquiring an additional 703 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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