Zacks Research Issues Optimistic Estimate for AKAM Earnings

Key Points

• Zacks Research has increased its FY2025 earnings per share estimate for Akamai Technologies from $3.99 to $4.00, though the consensus estimate remains higher at $4.60.
• Akamai Technologies reported a $1.70 EPS for the most recent quarter, exceeding analysts' expectations of $1.58, with revenues of $1.02 billion.
• Research firms have varied views on Akamai's stock, with Piper Sandler upgrading its price target to $88, while Wall Street Zen downgraded the rating from "buy" to "hold."

Akamai Technologies, Inc. (NASDAQ:AKAM - Free Report) - Equities research analysts at Zacks Research increased their FY2025 EPS estimates for shares of Akamai Technologies in a research report issued to clients and investors on Wednesday, July 23rd. Zacks Research analyst A. Chatterjee now expects that the technology infrastructure company will post earnings of $4.00 per share for the year, up from their previous estimate of $3.99. The consensus estimate for Akamai Technologies' current full-year earnings is $4.60 per share. Zacks Research also issued estimates for Akamai Technologies' Q1 2026 earnings at $1.00 EPS, FY2026 earnings at $4.06 EPS and FY2027 earnings at $4.39 EPS.

AKAM has been the topic of several other reports. Scotiabank lowered their price target on shares of Akamai Technologies from $107.00 to $105.00 and set a "sector outperform" rating on the stock in a report on Friday, May 9th. Morgan Stanley cut their price objective on Akamai Technologies from $102.00 to $90.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 16th. KeyCorp initiated coverage on shares of Akamai Technologies in a report on Friday, June 6th. They issued an "underweight" rating and a $63.00 target price on the stock. UBS Group raised their target price on Akamai Technologies from $85.00 to $90.00 and gave the company a "neutral" rating in a report on Friday, May 9th. Finally, Piper Sandler restated a "neutral" rating and issued a $88.00 price objective (up previously from $80.00) on shares of Akamai Technologies in a research note on Friday, May 9th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, eight have issued a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat.com, Akamai Technologies currently has a consensus rating of "Hold" and a consensus price target of $99.84.

Akamai Technologies Price Performance

Shares of AKAM traded down $0.70 during trading hours on Monday, hitting $78.79. 655,438 shares of the company were exchanged, compared to its average volume of 2,388,585. Akamai Technologies has a one year low of $67.51 and a one year high of $106.80. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.18 and a quick ratio of 1.18. The company has a market capitalization of $11.52 billion, a PE ratio of 26.61, a PEG ratio of 2.52 and a beta of 0.77. The firm has a fifty day simple moving average of $78.39 and a 200-day simple moving average of $82.43.

Akamai Technologies (NASDAQ:AKAM - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The technology infrastructure company reported $1.70 earnings per share for the quarter, topping analysts' consensus estimates of $1.58 by $0.12. Akamai Technologies had a net margin of 11.26% and a return on equity of 14.09%. The firm had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $1.01 billion. During the same period in the prior year, the company earned $1.64 EPS. The firm's revenue was up 2.9% on a year-over-year basis.

Institutional Trading of Akamai Technologies

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Orion Portfolio Solutions LLC increased its holdings in shares of Akamai Technologies by 0.6% in the fourth quarter. Orion Portfolio Solutions LLC now owns 19,991 shares of the technology infrastructure company's stock valued at $1,912,000 after purchasing an additional 114 shares during the last quarter. Beverly Hills Private Wealth LLC grew its holdings in Akamai Technologies by 4.7% in the 1st quarter. Beverly Hills Private Wealth LLC now owns 2,828 shares of the technology infrastructure company's stock valued at $228,000 after buying an additional 126 shares in the last quarter. Opes Wealth Management LLC increased its stake in shares of 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 worth $392,000 after acquiring an additional 128 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of Akamai Technologies by 50.8% during the 2nd 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 period. Finally, Amalgamated Bank grew its holdings in shares of Akamai Technologies by 0.5% in the first quarter. Amalgamated Bank now owns 29,080 shares of the technology infrastructure company's stock valued at $2,341,000 after purchasing an additional 139 shares during the period. Institutional investors and hedge funds own 94.28% of the company's stock.

Insider Buying and Selling at Akamai Technologies

In other news, EVP Paul C. Joseph sold 5,000 shares of the firm's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $77.74, for a total transaction of $388,700.00. Following the sale, the executive vice president directly owned 32,349 shares in the company, valued at $2,514,811.26. This trade represents a 13.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Kim Salem-Jackson sold 13,157 shares of Akamai Technologies stock in a transaction dated Tuesday, May 27th. The stock was sold at an average price of $76.33, for a total transaction of $1,004,273.81. Following the transaction, the executive vice president directly owned 43,575 shares of the company's stock, valued at approximately $3,326,079.75. This represents a 23.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 22,084 shares of company stock valued at $1,726,847. Insiders own 2.00% of the company's stock.

About Akamai Technologies

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.