Akamai Technologies (NASDAQ:AKAM) Downgraded by Zacks Research to “Strong Sell”

Zacks Research cut shares of Akamai Technologies (NASDAQ:AKAM) from a hold rating to a strong sell rating in a research note released on Tuesday morning,Zacks.com reports.

A number of other equities analysts also recently commented on AKAM. Raymond James Financial raised their price objective on shares of Akamai Technologies from $140.00 to $170.00 in a report on Monday, May 11th. DA Davidson raised their price objective on shares of Akamai Technologies from $115.00 to $125.00 and gave the stock a “buy” rating in a report on Thursday, February 12th. Morgan Stanley raised their price objective on shares of Akamai Technologies from $120.00 to $165.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. Robert W. Baird reaffirmed a “neutral” rating and set a $110.00 price objective on shares of Akamai Technologies in a report on Thursday, April 2nd. Finally, Royal Bank Of Canada raised their price objective on shares of Akamai Technologies from $100.00 to $150.00 and gave the stock a “sector perform” rating in a report on Friday, May 8th. Twelve analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of $145.29.

Akamai Technologies Price Performance

NASDAQ:AKAM opened at $143.55 on Tuesday. The company has a 50-day moving average of $114.42 and a 200-day moving average of $99.64. The company has a market capitalization of $20.87 billion, a price-to-earnings ratio of 48.33, a PEG ratio of 4.50 and a beta of 0.45. Akamai Technologies has a 52 week low of $69.78 and a 52 week high of $165.45. The company has a debt-to-equity ratio of 0.84, a quick ratio of 2.06 and a current ratio of 2.06.

Akamai Technologies (NASDAQ:AKAM) last released its quarterly earnings data on Thursday, May 7th. The technology infrastructure company reported $1.61 EPS for the quarter, hitting analysts’ consensus estimates of $1.61. The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.07 billion. Akamai Technologies had a net margin of 10.20% and a return on equity of 12.96%. The firm’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period last year, the firm earned $1.70 EPS. Akamai Technologies has set its FY 2026 guidance at 6.400-7.150 EPS and its Q2 2026 guidance at 1.450-1.650 EPS. As a group, equities research analysts anticipate that Akamai Technologies will post 3.93 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Jon Miller sold 11,000 shares of Akamai Technologies stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $102.67, for a total transaction of $1,129,370.00. Following the completion of the transaction, the director directly owned 22,806 shares of the company’s stock, valued at $2,341,492.02. This trade represents a 32.54% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Anthony P. Williams sold 15,000 shares of Akamai Technologies stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $104.29, for a total transaction of $1,564,350.00. Following the transaction, the executive vice president directly owned 22,064 shares of the company’s stock, valued at $2,301,054.56. This represents a 40.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 53,954 shares of company stock worth $5,511,371 over the last ninety days. Corporate insiders own 2.30% of the company’s stock.

Hedge Funds Weigh In On Akamai Technologies

Institutional investors have recently added to or reduced their stakes in the company. Rakuten Investment Management Inc. acquired a new stake in shares of Akamai Technologies during the 3rd quarter worth approximately $5,323,000. Fox Run Management L.L.C. grew its position in shares of Akamai Technologies by 467.7% during the 3rd quarter. Fox Run Management L.L.C. now owns 19,144 shares of the technology infrastructure company’s stock worth $1,450,000 after buying an additional 15,772 shares during the period. National Pension Service grew its position in shares of Akamai Technologies by 48.5% during the 3rd quarter. National Pension Service now owns 68,111 shares of the technology infrastructure company’s stock worth $5,160,000 after buying an additional 22,242 shares during the period. Grantham Mayo Van Otterloo & Co. LLC grew its position in shares of Akamai Technologies by 42.4% during the 3rd quarter. Grantham Mayo Van Otterloo & Co. LLC now owns 251,322 shares of the technology infrastructure company’s stock worth $19,040,000 after buying an additional 74,791 shares during the period. Finally, New York Life Investment Management LLC grew its position in shares of Akamai Technologies by 71.5% during the 3rd quarter. New York Life Investment Management LLC now owns 34,051 shares of the technology infrastructure company’s stock worth $2,580,000 after buying an additional 14,192 shares during the period. 94.28% of the stock is owned by institutional investors.

Akamai Technologies News Roundup

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Akamai released research showing that DDoS and API attacks against financial services are becoming bigger, longer, and more complex, reinforcing demand for its cybersecurity products and highlighting the company’s relevance in a growing threat environment. Article: Financial Services at Risk: DDoS Attacks Are Bigger, Longer, and More Complex, Akamai Research Finds
• Positive Sentiment: The company launched “AI Brand Presence,” a new tool aimed at helping customers optimize content for AI search and agentic traffic, which could support future growth as more internet traffic shifts toward AI-driven discovery. Article: Akamai AI Brand Presence Optimizes Content and Raises Visibility in Agentic Search
• Neutral Sentiment: Scotiabank reiterated a positive view on Akamai, with a $180 price target and FY2027 EPS estimate of $4.13, suggesting analysts still see room for earnings growth. Article: FY2027 Earnings Estimate for AKAM Issued By Scotiabank
• Negative Sentiment: Akamai priced an upsized $3.0 billion convertible note offering, including $1.5 billion due 2030 and $1.5 billion due 2032, which raised investor concerns about dilution and added leverage even if the proceeds support strategic investments and AI infrastructure. Article: Akamai Announces Pricing of Upsized Offering of Convertible Senior Notes
• Negative Sentiment: Market commentary linked Akamai’s weakness to the convertible debt deal, with reports noting the stock dropped on the financing news, making this the most direct reason for recent pressure on the shares. Article: The $2.6 Billion Power Play: How Akamai Is Weaponizing Debt to Build the AI Edge

About Akamai Technologies

Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.

The company’s core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.