Bank of America Has Lowered Expectations for Akamai Technologies (NASDAQ:AKAM) Stock Price

Key Points

• Bank of America has lowered its price target for Akamai Technologies from $100.00 to $80.00 while maintaining a "neutral" rating.
• Despite the downgrade, Bank of America's revised target implies a potential upside of 7.74% from the current stock price of $74.25.
• Analysts have mixed views on Akamai, with one holding a "Strong Buy", eight "Buy", nine "Hold", and five "Sell" ratings, indicating varied sentiment in the market.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) had its price target dropped by Bank of America from $100.00 to $80.00 in a research note issued on Monday,MarketScreener reports. The brokerage currently has a "neutral" rating on the technology infrastructure company's stock. Bank of America's price objective would suggest a potential upside of 7.74% from the stock's current price.

AKAM has been the topic of a number of other reports. Wall Street Zen upgraded Akamai Technologies from a "hold" rating to a "buy" rating in a research note on Saturday, August 9th. Scotiabank decreased their target price on Akamai Technologies from $105.00 to $95.00 and set a "sector outperform" rating on the stock in a research note on Friday, August 8th. The Goldman Sachs Group initiated coverage on Akamai Technologies in a report on Wednesday, August 13th. They set a "sell" rating and a $67.00 target price for the company. Morgan Stanley lowered shares of Akamai Technologies from an "equal weight" rating to an "underweight" rating and set a $85.00 price target on the stock. in a research note on Tuesday, August 5th. Finally, Weiss Ratings cut shares of Akamai Technologies from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, October 8th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat, Akamai Technologies presently has an average rating of "Hold" and a consensus price target of $92.53.

Akamai Technologies Trading Up 1.9%

Shares of AKAM stock opened at $74.25 on Monday. Akamai Technologies has a 1-year low of $67.51 and a 1-year high of $106.76. The firm has a market cap of $10.65 billion, a PE ratio of 26.33, a price-to-earnings-growth ratio of 3.48 and a beta of 0.75. The company has a 50-day moving average of $76.27 and a two-hundred day moving average of $77.06. The company has a debt-to-equity ratio of 0.92, a current ratio of 2.31 and a quick ratio of 2.31.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The technology infrastructure company reported $1.73 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.55 by $0.18. Akamai Technologies had a net margin of 10.40% and a return on equity of 14.26%. The business had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the previous year, the firm earned $1.58 EPS. The business's revenue was up 6.5% on a year-over-year basis. Akamai Technologies has set its FY 2025 guidance at 6.600-6.800 EPS. Q3 2025 guidance at 1.620-1.660 EPS. On average, analysts predict that Akamai Technologies will post 4.6 EPS for the current year.

Insider Activity

In other Akamai Technologies news, EVP Paul C. Joseph sold 5,000 shares of the firm's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $76.65, for a total value of $383,250.00. Following the sale, the executive vice president directly owned 27,349 shares in the company, valued at $2,096,300.85. This trade represents a 15.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Aaron Ahola sold 4,000 shares of the company's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $75.76, for a total value of $303,040.00. Following the completion of the transaction, the executive vice president directly owned 21,211 shares of the company's stock, valued at $1,606,945.36. This trade represents a 15.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 12,000 shares of company stock worth $917,290. 2.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Akamai Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of AKAM. DLD Asset Management LP boosted its stake in Akamai Technologies by 60.0% in the second quarter. DLD Asset Management LP now owns 20,000,000 shares of the technology infrastructure company's stock valued at $1,595,200,000 after acquiring an additional 7,500,000 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Akamai Technologies by 2.3% during the first quarter. Vanguard Group Inc. now owns 18,673,358 shares of the technology infrastructure company's stock worth $1,503,205,000 after purchasing an additional 425,461 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Akamai Technologies by 4.9% in the 2nd quarter. First Trust Advisors LP now owns 6,061,962 shares of the technology infrastructure company's stock valued at $483,502,000 after purchasing an additional 281,526 shares during the last quarter. Norges Bank acquired a new stake in shares of Akamai Technologies in the 2nd quarter valued at about $266,817,000. Finally, Legal & General Group Plc boosted its position in shares of Akamai Technologies by 3.5% in the 2nd quarter. Legal & General Group Plc now owns 2,812,805 shares of the technology infrastructure company's stock valued at $224,349,000 after purchasing an additional 94,012 shares during the period. 94.28% of the stock is currently owned by institutional investors and hedge funds.

Akamai Technologies Company Profile

Akamai Technologies, Inc provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance.

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