Akamai Technologies Inc. (AKAM) Lowered to “Sell” at Zacks Investment Research
Akamai Technologies Inc. (NASDAQ:AKAM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Wednesday.
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.”
A number of other brokerages have also recently commented on AKAM. SunTrust Banks Inc. initiated coverage on shares of Akamai Technologies in a research report on Thursday, July 21st. They issued a “buy” rating and a $66.00 target price on the stock. KeyCorp reiterated a “buy” rating on shares of Akamai Technologies in a research report on Tuesday, June 7th. FBR & Co decreased their target price on shares of Akamai Technologies from $43.00 to $42.00 and set an “underperform” rating on the stock in a research report on Wednesday, July 27th. Goldman Sachs Group Inc. lifted their target price on shares of Akamai Technologies from $43.00 to $47.00 and gave the stock a “sell” rating in a research report on Wednesday, July 27th. Finally, Pacific Crest reiterated a “buy” rating and issued a $71.00 target price on shares of Akamai Technologies in a research report on Wednesday, June 8th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. Akamai Technologies currently has a consensus rating of “Hold” and an average target price of $61.50.
Akamai Technologies (NASDAQ:AKAM) traded up 1.052% during trading on Wednesday, hitting $55.215. 913,196 shares of the stock were exchanged. Akamai Technologies has a 52 week low of $39.43 and a 52 week high of $76.39. The stock has a market cap of $9.65 billion, a P/E ratio of 30.305 and a beta of 1.49. The stock has a 50 day moving average of $53.15 and a 200-day moving average of $53.23.
Akamai Technologies (NASDAQ:AKAM) last posted its quarterly earnings data on Tuesday, July 26th. The technology infrastructure company reported $0.64 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.64. The firm had revenue of $572 million for the quarter, compared to analysts’ expectations of $574.86 million. Akamai Technologies had a net margin of 14.31% and a return on equity of 11.82%. The business’s quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter last year, the company posted $0.57 EPS. Equities analysts expect that Akamai Technologies will post $2.57 EPS for the current fiscal year.
In other Akamai Technologies news, EVP James Gemmell sold 1,869 shares of the company’s stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $50.45, for a total transaction of $94,291.05. Following the completion of the sale, the executive vice president now directly owns 7,148 shares of the company’s stock, valued at $360,616.60. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Rick M. Mcconnell sold 3,550 shares of the company’s stock in a transaction that occurred on Thursday, July 14th. The shares were sold at an average price of $58.00, for a total transaction of $205,900.00. Following the sale, the insider now directly owns 48,926 shares of the company’s stock, valued at $2,837,708. The disclosure for this sale can be found here. Insiders own 2.70% of the company’s stock.
A number of hedge funds have recently made changes to their positions in AKAM. BNP Paribas Arbitrage SA boosted its stake in shares of Akamai Technologies by 108.5% in the third quarter. BNP Paribas Arbitrage SA now owns 125,445 shares of the technology infrastructure company’s stock worth $6,647,000 after buying an additional 65,276 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund acquired a new stake in shares of Akamai Technologies during the second quarter worth approximately $397,000. Kentucky Retirement Systems acquired a new stake in shares of Akamai Technologies during the second quarter worth approximately $835,000. Mason Street Advisors LLC acquired a new stake in shares of Akamai Technologies during the second quarter worth approximately $1,323,000. Finally, Gagnon Securities LLC boosted its stake in shares of 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 in the last quarter. 89.88% of the stock is owned by institutional investors and hedge funds.
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.
Receive News & Stock Ratings for Akamai Technologies Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Akamai Technologies Inc. and related stocks with our FREE daily email newsletter.