Akamai Technologies (AKAM) Rating Reiterated by Zacks Investment Research
Akamai Technologies (NASDAQ:AKAM)‘s stock had its “strong-buy” rating reissued by Zacks Investment Research in a research report issued on Monday. They presently have a $83.00 target price on the technology infrastructure company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 19.96% from the stock’s current price.
According to Zacks, “Akamai reported stellar third-quarter results and raised its fiscal 2018 view. Management remains optimistic over the growing influence of its security solutions among media customers, in particular. Solid performance from cloud security solutions driven by strong demand for Kona Site Defender and Prolexic Solutions, as well as new Bot Manager Premier and Nominum Services are key catalysts. Robust over-the top (OTT) content viewing and increasing adoption of mobile data/apps and growing mobile data traffic bode well. The company has a positive record of earnings surprises in recent quarters. Notably, shares of the company have outperformed the industry over the past one year. However, stiff competition in the core CDN space is a concern. Increasing total bandwidth costs remains a headwind.”
AKAM has been the subject of a number of other reports. BidaskClub lowered shares of Akamai Technologies from a “sell” rating to a “strong sell” rating in a research note on Thursday, November 8th. Piper Jaffray Companies reaffirmed an “overweight” rating and issued a $89.00 price objective on shares of Akamai Technologies in a research note on Friday, July 20th. B. Riley upped their price objective on shares of Akamai Technologies from $97.00 to $105.00 and gave the stock a “buy” rating in a research note on Tuesday, October 30th. ValuEngine lowered shares of Akamai Technologies from a “buy” rating to a “hold” rating in a research note on Tuesday, October 2nd. Finally, Deutsche Bank lowered shares of Akamai Technologies from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $90.00 to $80.00 in a research note on Wednesday, August 1st. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, thirteen have given a buy rating and two have given a strong buy rating to the company’s stock. Akamai Technologies presently has a consensus rating of “Buy” and a consensus target price of $80.44.
Akamai Technologies (NASDAQ:AKAM) last posted its quarterly earnings results on Monday, October 29th. The technology infrastructure company reported $0.94 EPS for the quarter, topping the Zacks’ consensus estimate of $0.83 by $0.11. Akamai Technologies had a net margin of 8.39% and a return on equity of 12.06%. The firm had revenue of $669.63 million for the quarter, compared to analysts’ expectations of $664.17 million. During the same period in the prior year, the business posted $0.62 earnings per share. The business’s revenue for the quarter was up 7.2% on a year-over-year basis. As a group, equities research analysts anticipate that Akamai Technologies will post 2.66 earnings per share for the current year.
Akamai Technologies announced that its board has approved a stock buyback plan on Monday, October 29th that permits the company to buyback $1.10 billion in shares. This buyback authorization permits the technology infrastructure company to purchase up to 10.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s board believes its stock is undervalued.
In other Akamai Technologies news, SVP Aaron Ahola sold 1,123 shares of the stock in a transaction dated Thursday, September 6th. The shares were sold at an average price of $73.63, for a total transaction of $82,686.49. Following the completion of the sale, the senior vice president now directly owns 4,035 shares of the company’s stock, valued at $297,097.05. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider William Wheaton sold 3,922 shares of the stock in a transaction dated Wednesday, November 7th. The shares were sold at an average price of $71.73, for a total transaction of $281,325.06. Following the sale, the insider now directly owns 26,820 shares of the company’s stock, valued at $1,923,798.60. The disclosure for this sale can be found here. Over the last three months, insiders have sold 64,545 shares of company stock valued at $4,567,902. Insiders own 3.20% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in the business. King Luther Capital Management Corp lifted its position in shares of Akamai Technologies by 1.1% during the third quarter. King Luther Capital Management Corp now owns 2,326,575 shares of the technology infrastructure company’s stock valued at $170,189,000 after buying an additional 25,210 shares during the last quarter. Gagnon Securities LLC lifted its position in shares of Akamai Technologies by 8.6% during the third quarter. Gagnon Securities LLC now owns 20,250 shares of the technology infrastructure company’s stock valued at $1,481,000 after buying an additional 1,597 shares during the last quarter. Kepos Capital LP purchased a new stake in shares of Akamai Technologies during the third quarter valued at about $679,000. GAM Holding AG lifted its position in shares of Akamai Technologies by 21.8% during the third quarter. GAM Holding AG now owns 20,123 shares of the technology infrastructure company’s stock valued at $1,472,000 after buying an additional 3,596 shares during the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Akamai Technologies by 83.8% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 51,086 shares of the technology infrastructure company’s stock valued at $3,711,000 after buying an additional 23,295 shares during the last quarter. 87.27% of the stock is owned by institutional investors and hedge funds.
Akamai Technologies Company Profile
Akamai Technologies, Inc provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The company offers Web and mobile performance solutions, such as Ion, a situational performance solution; Dynamic Site Accelerator that helps in consistent Website performance; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of Websites in a pre-production environment; mPulse that provides real-time Website performance data to provide insight about end-user experiences on a Website; and Global Traffic Management, a fault-tolerant solution.
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