HSBC Forecasts Strong Price Appreciation for Akamai Technologies (NASDAQ:AKAM) Stock

Key Points

• HSBC raised its price target on Akamai to $134 from $130, a level that implies roughly a 60% upside from the stock's previous close.
• Akamai topped Q results (EPS $1.86 vs. $1.64 estimate; revenue $1.05B) and set FY2025 guidance of 6.930–7.130 EPS with Q4 guidance of 1.650–1.850 EPS.
• Analyst sentiment is mixed—one Strong Buy, eight Buy, ten Hold and five Sell—producing a consensus rating of "Hold" and an average price target of $94.45.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) had its price target upped by HSBC from $130.00 to $134.00 in a research note issued to investors on Monday,MarketScreener reports. HSBC's target price would suggest a potential upside of 60.02% from the stock's previous close.

A number of other brokerages have also issued reports on AKAM. Raymond James Financial cut their price target on shares of Akamai Technologies from $110.00 to $84.00 and set an "outperform" rating on the stock in a research note on Friday, August 8th. Weiss Ratings downgraded Akamai Technologies from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday. The Goldman Sachs Group lifted their price target on Akamai Technologies from $67.00 to $69.00 and gave the stock a "sell" rating in a research report on Friday. Bank of America dropped their price target on Akamai Technologies from $100.00 to $80.00 and set a "neutral" rating on the stock in a research note on Monday, October 20th. Finally, Piper Sandler lifted their target price on Akamai Technologies from $83.00 to $86.00 and gave the stock a "neutral" rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have issued a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $94.45.

Akamai Technologies Trading Up 14.7%

Shares of NASDAQ:AKAM opened at $83.74 on Monday. The business's 50-day moving average is $75.93 and its 200 day moving average is $77.27. 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 has a 1 year low of $67.51 and a 1 year high of $103.75. The firm has a market capitalization of $12.01 billion, a P/E ratio of 29.70, a P/E/G ratio of 3.49 and a beta of 0.72.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last issued its quarterly earnings results on Thursday, November 6th. The technology infrastructure company reported $1.86 earnings per share for the quarter, topping the consensus estimate of $1.64 by $0.22. Akamai Technologies had a return on equity of 14.26% and a net margin of 10.40%.The business had revenue of $1.05 billion during the quarter, compared to the consensus estimate of $1.04 billion. During the same quarter last year, the company earned $1.59 earnings per share. The company's quarterly revenue was up 5.0% on a year-over-year basis. Akamai Technologies has set its FY 2025 guidance at 6.930-7.130 EPS. Q4 2025 guidance at 1.650-1.850 EPS. On average, research analysts predict that Akamai Technologies will post 4.6 earnings per share for the current fiscal year.

Insider Activity at Akamai Technologies

In other news, CTO Robert Blumofe sold 3,500 shares of the firm's stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $86.00, for a total transaction of $301,000.00. Following the sale, the chief technology officer owned 24,410 shares of the company's stock, valued at $2,099,260. This trade represents a 12.54% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Aaron Ahola sold 4,000 shares of the stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $75.76, for a total transaction of $303,040.00. Following the sale, the executive vice president directly owned 21,211 shares in the company, valued at $1,606,945.36. This trade represents a 15.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 15,500 shares of company stock worth $1,218,290. 2.00% of the stock is owned by corporate insiders.

Institutional Trading of Akamai Technologies

Institutional investors have recently modified their holdings of the stock. Opes Wealth Management LLC lifted its holdings in Akamai Technologies by 2.7% in the 1st quarter. Opes Wealth Management LLC now owns 4,872 shares of the technology infrastructure company's stock valued at $392,000 after purchasing an additional 128 shares in the last quarter. UMB Bank n.a. boosted its position in Akamai Technologies by 50.8% during the second quarter. UMB Bank n.a. now owns 395 shares of the technology infrastructure company's stock worth $32,000 after acquiring an additional 133 shares during the last quarter. Horizon Investments LLC grew its stake in Akamai Technologies by 7.2% during the 1st quarter. Horizon Investments LLC now owns 2,220 shares of the technology infrastructure company's stock valued at $179,000 after acquiring an additional 149 shares in the last quarter. Hantz Financial Services Inc. raised its holdings in Akamai Technologies by 24.3% in the 3rd quarter. Hantz Financial Services Inc. now owns 830 shares of the technology infrastructure company's stock valued at $63,000 after acquiring an additional 162 shares during the last quarter. Finally, HighPoint Advisor Group LLC lifted its stake in Akamai Technologies by 3.4% in the 1st quarter. HighPoint Advisor Group LLC now owns 5,364 shares of the technology infrastructure company's stock worth $434,000 after purchasing an additional 176 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company's stock.

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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