Robert W. Baird Issues Pessimistic Forecast for Akamai Technologies (NASDAQ:AKAM) Stock Price

Key Points

• Robert W. Baird cut its Akamai price target from $140 to $92 and maintained a neutral rating; the new target implies 10.72% upside from the stock’s current price.
• Analyst opinion is mixed: MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $137.82, alongside several recent target cuts and rating downgrades.
• Akamai reported quarterly EPS of $1.77, beating the $1.67 consensus, while revenue of $1.12 billion was in line with estimates and rose 6.4% year over year.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) had its price target reduced by investment analysts at Robert W. Baird from $140.00 to $92.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm currently has a "neutral" rating on the technology infrastructure company's stock. Robert W. Baird's target price would indicate a potential upside of 10.72% from the stock's current price.

AKAM has been the topic of several other research reports. Citigroup dropped their price objective on Akamai Technologies from $160.00 to $122.00 and set a "neutral" rating on the stock in a research note on Friday, September 4th. Weiss Ratings downgraded Akamai Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Monday, October 19th. Evercore reissued an "outperform" rating and issued a $150.00 price objective on shares of Akamai Technologies in a report on Friday. KeyCorp lowered their price objective on Akamai Technologies from $195.00 to $175.00 and set an "overweight" rating on the stock in a research note on Friday. Finally, HSBC downgraded shares of Akamai Technologies from a "buy" rating to a "hold" rating and dropped their price objective for the company from $171.00 to $123.00 in a report on Monday, August 10th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $137.82.

Akamai Technologies Stock Performance

AKAM stock opened at $83.09 on Monday. The company has a quick ratio of 1.64, a current ratio of 2.13 and a debt-to-equity ratio of 1.25. The firm has a market cap of $11.94 billion, a PE ratio of 32.21, a P/E/G ratio of 3.91 and a beta of 0.65. The business has a 50 day moving average of $101.55 and a 200-day moving average of $112.24. Akamai Technologies has a 12-month low of $76.75 and a 12-month high of $165.45.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last released its earnings results on Thursday, November 5th. The technology infrastructure company reported $1.77 earnings per share for the quarter, beating analysts' consensus estimates of $1.67 by $0.10. Akamai Technologies had a net margin of 8.84% and a return on equity of 10.88%. The firm had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.12 billion. During the same period in the prior year, the firm earned $1.86 EPS. The company's revenue was up 6.4% compared to the same quarter last year. Akamai Technologies has set its FY 2026 guidance at 6.470-6.680 EPS and its Q4 2026 guidance at 1.500-1.700 EPS. As a group, sell-side analysts expect that Akamai Technologies will post 3.58 earnings per share for the current year.

Insider Transactions at Akamai Technologies

In related news, EVP Kim Salem-Jackson sold 2,013 shares of the business's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $128.00, for a total value of $257,664.00. Following the completion of the sale, the executive vice president owned 57,197 shares in the company, valued at $7,321,216. The trade was a 3.40% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mani Sundaram sold 7,022 shares of the company's stock in a transaction that occurred on Friday, September 25th. The stock was sold at an average price of $125.62, for a total value of $882,103.64. Following the completion of the sale, the executive vice president directly owned 14,625 shares of the company's stock, valued at approximately $1,837,192.50. This represents a 32.44% decrease in their position. 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. In the last three months, insiders sold 12,135 shares of company stock worth $1,467,221. 2.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Akamai Technologies

Hedge funds and other institutional investors have recently modified their holdings of the stock. Phoenix Financial Ltd. grew its holdings in Akamai Technologies by 47.5% during the third quarter. Phoenix Financial Ltd. now owns 3,125 shares of the technology infrastructure company's stock worth $333,000 after acquiring an additional 1,007 shares during the period. Migdal Insurance & Financial Holdings Ltd. lifted its holdings in Akamai Technologies by 7.3% in the third quarter. Migdal Insurance & Financial Holdings Ltd. now owns 4,500 shares of the technology infrastructure company's stock valued at $479,000 after acquiring an additional 308 shares during the period. Danske Bank A S boosted its position in Akamai Technologies by 8,064.1% in the 3rd quarter. Danske Bank A S now owns 89,805 shares of the technology infrastructure company's stock worth $9,551,000 after purchasing an additional 88,705 shares in the last quarter. Diversified Trust Co boosted its position in Akamai Technologies by 2.3% in the 3rd quarter. Diversified Trust Co now owns 8,440 shares of the technology infrastructure company's stock worth $898,000 after purchasing an additional 193 shares in the last quarter. Finally, Aberdeen Group plc grew its stake in shares of Akamai Technologies by 3,178.3% during the 3rd quarter. Aberdeen Group plc now owns 203,352 shares of the technology infrastructure company's stock worth $21,626,000 after purchasing an additional 197,149 shares during the period. Institutional investors own 94.28% of the company's stock.

About Akamai Technologies

Akamai Technologies is a technology company that provides cloud computing, cybersecurity and content delivery services. Its distributed platform helps businesses deliver digital content and applications, protect online operations and run workloads closer to users and devices.

The company's offerings include web and application performance services, protection against cyberattacks, application and API security, and cloud infrastructure through Akamai Connected Cloud. Its services support organizations seeking to improve the speed, availability and security of their websites, applications and online services.

Founded in 1998, Akamai grew from a content delivery network provider into a broader cloud and security company.

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