Akamai Technologies Inc. (AKAM) Upgraded to “Hold” at Zacks Investment Research
According to Zacks, “Akamai's business is being hurt by the DIY initiatives of some key clients in the CDN space. In addition, intense competition has kept pricing under pressure, which is a significant headwind. However, the company expects growth to reaccelerate in 2017 as the “core business” is performing well. Akamai, which has a leading position in the CDN market, is also expected to benefit from the rising demand for cloud infrastructure solutions, security, mobile products and online video. Additionally, Akamai’s partnership with the likes of Microsoft, Cisco, AT&T and IBM, will generate financial synergies over the long term.”
Other equities research analysts have also issued research reports about the stock. SunTrust Banks Inc. initiated coverage on shares of Akamai Technologies in a research note on Thursday, July 21st. They issued a buy rating and a $66.00 price objective for the company. KeyCorp reiterated a buy rating on shares of Akamai Technologies in a research note on Tuesday, June 7th. FBR & Co decreased their price objective on shares of Akamai Technologies from $43.00 to $42.00 and set an underperform rating for the company in a research note on Wednesday, July 27th. Goldman Sachs Group Inc. increased their price objective on shares of Akamai Technologies from $43.00 to $47.00 and gave the company a sell rating in a research note on Wednesday, July 27th. Finally, Pacific Crest reiterated a buy rating and issued a $71.00 price objective on shares of Akamai Technologies in a research note on Wednesday, June 8th. Two equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. The stock presently has an average rating of Hold and an average price target of $61.35.
Shares of Akamai Technologies (NASDAQ:AKAM) traded down 2.004% during trading on Tuesday, hitting $51.595. The stock had a trading volume of 589,114 shares. Akamai Technologies has a 12-month low of $39.43 and a 12-month high of $76.39. The stock’s 50-day moving average is $52.91 and its 200-day moving average is $53.31. The stock has a market capitalization of $9.01 billion, a P/E ratio of 28.318 and a beta of 1.47.
Akamai Technologies (NASDAQ:AKAM) last posted its earnings results on Tuesday, July 26th. The technology infrastructure company reported $0.64 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.64. Akamai Technologies had a net margin of 14.31% and a return on equity of 11.82%. The company had revenue of $572 million for the quarter, compared to analyst estimates of $574.86 million. During the same quarter in the prior year, the business posted $0.57 EPS. The firm’s revenue was up 5.8% compared to the same quarter last year. Analysts predict that Akamai Technologies will post $2.57 EPS for the current fiscal year.
In other Akamai Technologies news, Director Paul Sagan sold 23,255 shares of the company’s stock in a transaction that occurred on Thursday, September 15th. The shares were sold at an average price of $51.33, for a total value of $1,193,679.15. Following the completion of the transaction, the director now directly owns 65,077 shares in the company, valued at $3,340,402.41. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO F Thomson Leighton purchased 19,468 shares of the company’s stock in a transaction on Thursday, September 15th. The stock was purchased at an average price of $51.36 per share, with a total value of $999,876.48. The disclosure for this purchase can be found here. 2.70% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of AKAM. Kentucky Retirement Systems Insurance Trust Fund purchased a new position in Akamai Technologies during the second quarter worth $397,000. Kentucky Retirement Systems purchased a new position in Akamai Technologies during the second quarter worth $835,000. Mason Street Advisors LLC purchased a new position in Akamai Technologies during the second quarter worth $1,323,000. Gagnon Securities LLC raised its position in Akamai Technologies by 0.5% in the second quarter. Gagnon Securities LLC now owns 18,727 shares of the technology infrastructure company’s stock worth $1,047,000 after buying an additional 100 shares during the last quarter. Finally, Perigon Wealth Management LLC raised its position in Akamai Technologies by 37.1% in the second quarter. Perigon Wealth Management LLC now owns 16,767 shares of the technology infrastructure company’s stock worth $938,000 after buying an additional 4,536 shares during the last quarter. Institutional investors and hedge funds own 89.88% of the company’s stock.
Akamai Technologies Company Profile
Akamai Technologies, Inc is engaged in providing cloud services for delivering, optimizing and securing content and business applications over the Internet. The Company’s across the globe distributed platform comprises approximately 200,000 servers in over 1,400 networks in over 120 countries. It is involved in offering content delivery network (CDN) services.
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