Akamai Technologies, Inc. $AKAM Stake Lessened by Palouse Capital Management Inc.

Key Points

• Palouse Capital Management cut its Akamai stake by 93.9% in the second quarter, selling 24,981 shares and retaining 1,613 shares valued at approximately $191,000. Institutional investors collectively own 94.28% of the company.
• Akamai exceeded second-quarter expectations with adjusted EPS of $1.59 and revenue of approximately $1.10 billion, up 5.4% year over year. Its third-quarter and full-year EPS guidance also came in above analyst consensus, although quarterly EPS declined from $1.73 a year earlier.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with a $145.29 target price, while the stock recently traded near $118.55. Investors also face concerns over heavy AI-related investment, potential pressure on free cash flow and leverage, and reported insider selling.

Palouse Capital Management Inc. lessened its stake in shares of Akamai Technologies, Inc. (NASDAQ:AKAM - Free Report) by 93.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,613 shares of the technology infrastructure company's stock after selling 24,981 shares during the quarter. Palouse Capital Management Inc.'s holdings in Akamai Technologies were worth $191,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Sarver Vrooman Wealth Advisors bought a new position in Akamai Technologies during the 4th quarter valued at $31,000. Root Financial Partners LLC increased its position in shares of Akamai Technologies by 45.8% during the 4th quarter. Root Financial Partners LLC now owns 350 shares of the technology infrastructure company's stock valued at $31,000 after purchasing an additional 110 shares during the period. CYBER HORNET ETFs LLC bought a new stake in shares of Akamai Technologies in the 2nd quarter worth $32,000. WealthCollab LLC raised its stake in shares of Akamai Technologies by 154.2% in the 4th quarter. WealthCollab LLC now owns 394 shares of the technology infrastructure company's stock worth $34,000 after buying an additional 239 shares in the last quarter. Finally, Align Financial LLC acquired a new stake in shares of Akamai Technologies in the fourth quarter valued at $34,000. Institutional investors own 94.28% of the company's stock.

Akamai Technologies News Roundup

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

• Positive Sentiment: Q2 earnings and revenue beat estimates: Akamai reported adjusted earnings of $1.59 per share versus the $1.57–$1.58 consensus range, while revenue rose 5.4% year over year to approximately $1.10 billion, ahead of the roughly $1.09 billion forecast. Demand for cloud infrastructure and security services supported the results. Akamai beats quarterly estimates on cloud infrastructure demand
• Positive Sentiment: Guidance exceeded EPS expectations: Akamai projected third-quarter 2026 EPS of $1.60–$1.80, above the $1.56 consensus estimate, and raised or maintained full-year EPS guidance at $6.40–$7.05 versus the $6.15 consensus. Revenue guidance was broadly in line with expectations at $4.4–$4.5 billion for the year. Akamai Technologies beats Q2 earnings and revenue estimates
• Positive Sentiment: Security product momentum: New research on “shadow AI” risks and the expansion of Akamai Workforce Protector reinforce the company’s positioning in enterprise cybersecurity as businesses adopt artificial intelligence. Akamai Research on shadow AI
• Neutral Sentiment: Mixed underlying comparisons: Although revenue grew, quarterly EPS declined from $1.73 a year earlier, highlighting pressure on profitability despite the earnings beat. Akamai Q2 key metrics
• Negative Sentiment: AI investment and balance-sheet concerns remain: Akamai’s large AI infrastructure commitment requires elevated capital expenditures and additional borrowing, potentially weighing on free cash flow, leverage and returns before the investment generates meaningful benefits.
• Negative Sentiment: Insider selling may weigh on sentiment: Reported insider activity showed 21 sales and no purchases over the past six months, including transactions by several senior executives.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AKAM. Susquehanna raised their target price on Akamai Technologies from $120.00 to $175.00 and gave the company a "positive" rating in a research note on Monday, May 11th. Oppenheimer boosted their target price on shares of Akamai Technologies from $115.00 to $130.00 and gave the stock an "outperform" rating in a report on Thursday, April 23rd. The Goldman Sachs Group increased their target price on shares of Akamai Technologies from $76.00 to $87.00 and gave the company a "sell" rating in a research note on Friday, May 8th. Guggenheim raised their target price on shares of Akamai Technologies from $133.00 to $181.00 and gave the stock a "buy" rating in a report on Friday, May 8th. Finally, Zacks Research upgraded shares of Akamai Technologies from a "strong sell" rating to a "hold" rating in a research report on Monday, July 13th. Twelve equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Akamai Technologies presently has an average rating of "Hold" and a consensus target price of $145.29.

Insider Activity at Akamai Technologies

In other news, CTO Robert Blumofe sold 243 shares of the business's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $129.41, for a total transaction of $31,446.63. Following the sale, the chief technology officer owned 31,006 shares in the company, valued at $4,012,486.46. The trade was a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 business's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $135.57, for a total transaction of $311,811.00. Following the sale, the executive vice president owned 59,210 shares in the company, valued at $8,027,099.70. This represents a 3.74% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.30% of the company's stock.

Akamai Technologies Trading Down 3.0%

Shares of AKAM opened at $118.55 on Friday. The business's 50-day moving average price is $125.55 and its 200 day moving average price is $115.83. The stock has a market capitalization of $17.23 billion, a P/E ratio of 39.92, a P/E/G ratio of 5.19 and a beta of 0.63. Akamai Technologies, Inc. has a 1-year low of $69.78 and a 1-year high of $165.45. The company has a current ratio of 2.06, a quick ratio of 2.06 and a debt-to-equity ratio of 0.84.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The technology infrastructure company reported $1.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.02. Akamai Technologies had a return on equity of 12.96% and a net margin of 10.20%.The firm had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter in the previous year, the company earned $1.73 EPS. The business's revenue for the quarter was up 5.4% compared to the same quarter last year. 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. Analysts expect that Akamai Technologies, Inc. will post 3.91 earnings per share for the current year.

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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