Evercore Begins Coverage on Akamai Technologies (NASDAQ:AKAM)

Key Points

• Evercore initiated coverage with an Outperform rating and a $130 price target, implying roughly a 42.9% upside, while the Street consensus remains a "Hold" with an average target of $111.58.
• Akamai posted an earnings beat (EPS $1.84 vs. $1.75 expected) and $1.09B in revenue (up 7.4% year-over-year) and issued FY2026 guidance of $6.20–$7.20 EPS, versus analyst forecasts of about 4.6 EPS for the current fiscal year.
• The stock fell about 4.1% to $91 during mid-day trading, insiders have sold roughly 65,954 shares (~$6.68M) in the past 90 days, and institutional investors own approximately 94.3% of the company.

Analysts at Evercore initiated coverage on shares of Akamai Technologies (NASDAQ:AKAM - Get Free Report) in a report issued on Tuesday. The firm set an "outperform" rating and a $130.00 price target on the technology infrastructure company's stock. Evercore's target price would suggest a potential upside of 42.86% from the stock's current price.

A number of other analysts have also weighed in on the stock. Scotiabank increased their price objective on shares of Akamai Technologies from $105.00 to $120.00 and gave the stock a "sector outperform" rating in a research note on Friday, February 20th. DA Davidson raised their price target on shares of Akamai Technologies from $115.00 to $125.00 and gave the company a "buy" rating in a research report on Thursday, February 12th. TD Cowen dropped their price target on shares of Akamai Technologies from $104.00 to $100.00 and set a "hold" rating on the stock in a research report on Friday, February 20th. Susquehanna raised their price target on shares of Akamai Technologies from $105.00 to $120.00 and gave the company a "positive" rating in a research report on Friday, February 20th. Finally, Morgan Stanley raised their price target on shares of Akamai Technologies from $115.00 to $120.00 and gave the company an "overweight" rating in a research report on Friday, February 20th. Nine research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $111.58.

Akamai Technologies Stock Down 4.1%

Shares of AKAM traded down $3.94 during mid-day trading on Tuesday, hitting $91.00. The company's stock had a trading volume of 734,950 shares, compared to its average volume of 4,538,220. The company's 50-day moving average is $105.35 and its 200-day moving average is $92.03. Akamai Technologies has a 52-week low of $69.78 and a 52-week high of $121.12. The firm has a market capitalization of $13.20 billion, a price-to-earnings ratio of 29.64, a PEG ratio of 3.13 and a beta of 0.59. The company has a current ratio of 2.36, a quick ratio of 2.36 and a debt-to-equity ratio of 0.82.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last posted its earnings results on Thursday, February 19th. The technology infrastructure company reported $1.84 EPS for the quarter, beating analysts' consensus estimates of $1.75 by $0.09. The company had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.08 billion. Akamai Technologies had a net margin of 10.74% and a return on equity of 13.86%. Akamai Technologies's revenue for the quarter was up 7.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.66 earnings per share. Akamai Technologies has set its FY 2026 guidance at 6.200-7.200 EPS and its Q1 2026 guidance at 1.500-1.670 EPS. On average, equities research analysts forecast that Akamai Technologies will post 4.6 EPS for the current fiscal year.

Insider Activity at Akamai Technologies

In other Akamai Technologies news, EVP Mani Sundaram sold 8,642 shares of Akamai Technologies stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $101.25, for a total transaction of $875,002.50. Following the completion of the sale, the executive vice president directly owned 19,923 shares in the company, valued at $2,017,203.75. This trade represents a 30.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Laura Howell sold 11,273 shares of Akamai Technologies stock in a transaction dated Wednesday, February 25th. The shares were sold at an average price of $100.14, for a total transaction of $1,128,878.22. Following the sale, the chief accounting officer owned 12,559 shares of the company's stock, valued at approximately $1,257,658.26. This represents a 47.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 65,954 shares of company stock valued at $6,679,721 over the last ninety days. Corporate insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of AKAM. Brighton Jones LLC boosted its holdings in shares of Akamai Technologies by 101.4% in the 4th quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company's stock valued at $384,000 after buying an additional 2,022 shares in the last quarter. Jones Financial Companies Lllp raised its position in 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 purchasing an additional 283 shares during the last quarter. United Services Automobile Association purchased a new stake in Akamai Technologies in the 1st quarter valued at $266,000. Empowered Funds LLC raised its position in Akamai Technologies by 73.0% in the 1st quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company's stock valued at $574,000 after purchasing an additional 3,010 shares during the last quarter. Finally, EverSource Wealth Advisors LLC raised its position in Akamai Technologies by 152.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,163 shares of the technology infrastructure company's stock valued at $93,000 after purchasing an additional 703 shares during the last quarter. Institutional investors and hedge funds 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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