Shares of Akamai Technologies, Inc. (NASDAQ:AKAM – Get Free Report) saw unusually-strong trading volume on Tuesday. Approximately 7,083,205 shares traded hands during mid-day trading, an increase of 48% from the average daily volume of 4,793,246 shares. The stock last traded at $81.3610 and had previously closed at $80.29.
Key Akamai Technologies News
Here are the key news stories impacting Akamai Technologies this week:
- Positive Sentiment: Akamai says the capital will help fund cloud-infrastructure expansion, positioning the company to pursue growth in AI-related demand. Its recent earnings call also highlighted a potential cloud-infrastructure growth opportunity. Akamai Earnings Call Signals Cloud Infrastructure Breakout
- Neutral Sentiment: Akamai priced a $2.2 billion private offering of 1.00% convertible senior notes, split evenly between notes due in 2028 and 2031. The company plans to use the proceeds for cloud spending and debt repayment or refinancing; the low coupon may limit interest expense, but conversion could dilute shareholders. Akamai Announces Pricing of Offering of Convertible Senior Notes
- Negative Sentiment: Moody’s and S&P downgraded Akamai amid concerns about debt tied to its AI infrastructure buildout. The large convertible offering adds to investor focus on leverage and financing risks. Moody’s and S&P downgrade Akamai on debt-fueled AI infrastructure buildout
- Negative Sentiment: Analyst actions added pressure: Baird cut its price target from $140 to $92 and maintained a neutral rating, while KeyCorp, DA Davidson and Susquehanna also lowered their targets. Jim Cramer said he prefers Cloudflare to Akamai. Akamai Technologies Stock Price Target 2026
Wall Street Analyst Weigh In
A number of research analysts have recently commented on the company. Raymond James Financial upgraded Akamai Technologies from an “outperform” rating to a “strong-buy” rating and set a $170.00 price target for the company in a report on Tuesday, October 20th. Susquehanna cut their target price on Akamai Technologies from $140.00 to $90.00 and set a “positive” rating for the company in a research note on Friday. Citigroup decreased their target price on shares of Akamai Technologies from $160.00 to $122.00 and set a “neutral” rating on the stock in a research report on Friday, September 4th. KeyCorp lowered their target price on shares of Akamai Technologies from $195.00 to $175.00 and set an “overweight” rating on the stock in a research note on Friday. Finally, Royal Bank Of Canada dropped their price target on shares of Akamai Technologies from $135.00 to $85.00 and set a “sector perform” rating for the company in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $137.82.
View Our Latest Research Report on Akamai Technologies
Akamai Technologies Stock Up 2.0%
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 stock has a market cap of $11.77 billion, a price-to-earnings ratio of 31.70, a PEG ratio of 4.05 and a beta of 0.65. The firm’s 50-day simple moving average is $101.01 and its two-hundred day simple moving average is $112.17.
Akamai Technologies (NASDAQ:AKAM – Get Free Report) last announced its earnings results on Thursday, November 5th. The technology infrastructure company reported $1.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.10. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period in the prior year, the business earned $1.86 earnings per share. Akamai Technologies’s quarterly revenue was up 6.4% on a year-over-year basis. Akamai Technologies has set its FY 2026 guidance at 6.470-6.680 EPS and its Q4 2026 guidance at 1.500-1.700 EPS. On average, sell-side analysts expect that Akamai Technologies, Inc. will post 3.58 EPS for the current fiscal year.
Insider Transactions at Akamai Technologies
In other news, EVP Paul C. Joseph sold 3,100 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $105.63, for a total value of $327,453.00. Following the completion of the transaction, the executive vice president owned 28,472 shares of the company’s stock, valued at $3,007,497.36. The trade was a 9.82% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mani Sundaram sold 7,022 shares of the stock in a transaction dated Friday, September 25th. The stock was sold at an average price of $125.62, for a total value of $882,103.64. Following the completion of the sale, the executive vice president owned 14,625 shares of the company’s stock, valued at $1,837,192.50. This trade represents a 32.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,135 shares of company stock worth $1,467,221 in the last three months. Insiders own 2.30% of the company’s stock.
Institutional Inflows and Outflows
Several large investors have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC boosted its stake in shares of Akamai Technologies by 3.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,356 shares of the technology infrastructure company’s stock worth $271,000 after acquiring an additional 70 shares during the period. Tema ETFs LLC raised its stake in Akamai Technologies by 9.5% in the 2nd quarter. Tema ETFs LLC now owns 1,664 shares of the technology infrastructure company’s stock valued at $197,000 after acquiring an additional 145 shares during the period. Allworth Financial LP lifted its holdings in Akamai Technologies by 1.5% during the 3rd quarter. Allworth Financial LP now owns 11,079 shares of the technology infrastructure company’s stock valued at $1,109,000 after purchasing an additional 159 shares during the last quarter. Farmers & Merchants Investments Inc. boosted its position in Akamai Technologies by 153.7% during the third quarter. Farmers & Merchants Investments Inc. now owns 274 shares of the technology infrastructure company’s stock worth $29,000 after purchasing an additional 166 shares during the period. Finally, Groupama Asset Managment boosted its position in Akamai Technologies by 6.0% during the first quarter. Groupama Asset Managment now owns 3,383 shares of the technology infrastructure company’s stock worth $389,000 after purchasing an additional 191 shares during the period. Institutional investors and hedge funds own 94.28% of the company’s stock.
About Akamai Technologies
Akamai Technologies is a technology company that provides cloud computing, cybersecurity and content delivery services. Its distributed platform helps businesses deliver digital content and applications, protect online operations and run workloads closer to users and devices. The company’s offerings include web and application performance services, protection against cyberattacks, application and API security, and cloud infrastructure through Akamai Connected Cloud. Its services support organizations seeking to improve the speed, availability and security of their websites, applications and online services.
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