Akamai Technologies (NASDAQ:AKAM) Stock Price Up 6% - Still a Buy?

Key Points

• Akamai shares rose 6% to about $111.96, though trading volume was far below average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: 13 analysts rate the stock a Buy, nine a Hold and two a Sell, producing an overall “Hold” rating and an average price target of $141.62.
• Akamai slightly exceeded quarterly expectations, reporting $1.59 in EPS and $1.10 billion in revenue, with revenue up 5.4% year over year. However, EPS declined from $1.73 in the prior-year quarter, and the company trades at a relatively high P/E ratio of 40.20.

Akamai Technologies, Inc. (NASDAQ:AKAM - Get Free Report) rose 6% on Wednesday . The company traded as high as $110.46 and last traded at $111.9580. Approximately 485,807 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 4,492,407 shares. The stock had previously closed at $105.61.

Analyst Upgrades and Downgrades

AKAM has been the topic of a number of recent analyst reports. Piper Sandler upgraded Akamai Technologies from a "neutral" rating to an "overweight" rating and decreased their target price for the company from $140.00 to $125.00 in a research report on Tuesday, September 1st. JPMorgan Chase & Co. raised shares of Akamai Technologies from an "underweight" rating to a "neutral" rating and boosted their price target for the stock from $132.00 to $158.00 in a report on Thursday, August 13th. Susquehanna reduced their price objective on shares of Akamai Technologies from $175.00 to $140.00 and set a "positive" rating for the company in a research report on Monday, August 10th. Citigroup decreased their price objective on shares of Akamai Technologies from $160.00 to $122.00 and set a "neutral" rating on the stock in a report on Friday, September 4th. Finally, HSBC lowered shares of Akamai Technologies from a "buy" rating to a "hold" rating and dropped their target price for the company from $171.00 to $123.00 in a research report on Monday, August 10th. Thirteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $141.62.

Akamai Technologies Stock Performance

The company has a debt-to-equity ratio of 1.23, a quick ratio of 1.64 and a current ratio of 1.64. The firm's 50-day moving average price is $115.55 and its two-hundred day moving average price is $117.97. The stock has a market cap of $16.05 billion, a price-to-earnings ratio of 40.20, a PEG ratio of 4.85 and a beta of 0.63.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The technology infrastructure company reported $1.59 EPS for the quarter, beating the consensus estimate of $1.57 by $0.02. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The firm had revenue of $1.10 billion for the quarter, compared to analyst estimates 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. On average, analysts expect that Akamai Technologies, Inc. will post 3.66 EPS for the current fiscal year.

Insider Activity at Akamai Technologies

In other Akamai Technologies news, CTO Robert Blumofe sold 243 shares of the business's stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $129.41, for a total value of $31,446.63. Following the completion of the transaction, 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 SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.30% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC grew its position 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 during the last quarter. Jones Financial Companies Lllp increased 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 acquiring an additional 283 shares during the period. United Services Automobile Association purchased a new stake in Akamai Technologies during the 1st quarter valued at approximately $266,000. Empowered Funds LLC raised its stake in Akamai Technologies by 73.0% during the 1st quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company's stock valued at $574,000 after acquiring an additional 3,010 shares during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake 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 buying an additional 703 shares during the period. 94.28% of the stock is currently owned by hedge funds and other institutional investors.

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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