Akamai Technologies’ (AKAM) Buy Rating Reaffirmed at DA Davidson

Akamai Technologies (NASDAQ:AKAM)‘s stock had its “buy” rating reaffirmed by stock analysts at DA Davidson in a research report issued on Friday, Benzinga reports. They currently have a $185.00 price objective on the technology infrastructure company’s stock. DA Davidson’s price target would indicate a potential upside of 59.31% from the company’s current price.

Several other equities analysts have also recently issued reports on AKAM. Susquehanna lowered their target price on shares of Akamai Technologies from $175.00 to $140.00 and set a “positive” rating on the stock in a research note on Monday, August 10th. HSBC cut shares of Akamai Technologies from a “buy” rating to a “hold” rating and lowered their price objective for the stock from $171.00 to $123.00 in a research note on Monday, August 10th. JPMorgan Chase & Co. increased their price objective on shares of Akamai Technologies from $158.00 to $167.00 and gave the stock a “neutral” rating in a research note on Friday. Royal Bank Of Canada reissued a “sector perform” rating and issued a $135.00 target price on shares of Akamai Technologies in a report on Friday. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Akamai Technologies in a report on Monday. Thirteen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $149.29.

Akamai Technologies Stock Up 5.2%

Shares of NASDAQ AKAM traded up $5.71 on Friday, reaching $116.12. 26,296,460 shares of the company’s stock traded hands, compared to its average volume of 4,602,394. Akamai Technologies has a 12 month low of $70.82 and a 12 month high of $165.45. The business’s 50 day simple moving average is $113.10 and its two-hundred day simple moving average is $118.76. The company has a market cap of $16.69 billion, a price-to-earnings ratio of 41.75, a price-to-earnings-growth ratio of 5.49 and a beta of 0.63. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 1.23.

Akamai Technologies (NASDAQ:AKAM) last announced its quarterly earnings data on Thursday, August 6th. The technology infrastructure company reported $1.59 EPS for the quarter, beating the consensus estimate of $1.57 by $0.02. Akamai Technologies had a net margin of 9.51% and a return on equity of 11.32%. The company had revenue of $1.10 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same period in the prior year, the firm posted $1.73 EPS. Akamai Technologies’s revenue for the quarter was up 5.4% on a year-over-year basis. Akamai Technologies has set its Q3 2026 guidance at 1.600-1.800 EPS and its FY 2026 guidance at 6.400-7.050 EPS. As a group, equities research analysts forecast that Akamai Technologies will post 3.63 EPS for the current fiscal year.

Insider Transactions at Akamai Technologies

In other Akamai Technologies news, EVP Paul Joseph sold 3,100 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $105.63, for a total transaction of $327,453.00. Following the completion of the sale, the executive vice president directly owned 28,472 shares of the company’s stock, valued at $3,007,497.36. This trade represents a 9.82% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 2.30% of the company’s stock.

Institutional Investors Weigh In On Akamai Technologies

A number of institutional investors have recently added to or reduced their stakes in the stock. QRG Capital Management Inc. grew its holdings in Akamai Technologies by 1,716.7% during the 2nd quarter. QRG Capital Management Inc. now owns 32,610 shares of the technology infrastructure company’s stock valued at $3,855,000 after buying an additional 30,815 shares in the last quarter. Envestnet Portfolio Solutions Inc. grew its holdings in Akamai Technologies by 114.7% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 6,073 shares of the technology infrastructure company’s stock valued at $718,000 after buying an additional 3,244 shares in the last quarter. Sequoia Financial Advisors LLC grew its holdings in Akamai Technologies by 263.5% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 98,149 shares of the technology infrastructure company’s stock valued at $11,602,000 after buying an additional 71,147 shares in the last quarter. Tidal Investments LLC grew its holdings in Akamai Technologies by 328.9% during the 2nd quarter. Tidal Investments LLC now owns 181,197 shares of the technology infrastructure company’s stock valued at $21,419,000 after buying an additional 138,950 shares in the last quarter. Finally, Capital Analysts LLC grew its holdings in Akamai Technologies by 71.0% during the 2nd quarter. Capital Analysts LLC now owns 2,957 shares of the technology infrastructure company’s stock valued at $350,000 after buying an additional 1,228 shares in the last quarter. 94.28% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Akamai Technologies

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

• Positive Sentiment: Major Anthropic contract: Anthropic agreed to pay Akamai $11.6 billion over seven years for access to Akamai Cloud’s distributed infrastructure and software to support CPU workloads. The relationship could expand by another $9 billion, creating potential total commitments of approximately $20 billion. Reuters article
• Positive Sentiment: AI growth catalyst: Investors view the agreement as validation of Akamai’s cloud platform and its ability to capture rising demand for AI computing capacity. Reports indicated the stock rose more than 14% to 23% in premarket and early trading. Invezz article
• Positive Sentiment: Analyst support strengthened: Piper Sandler reaffirmed its overweight rating and raised its price target to $158 from $125. DA Davidson maintained a buy rating with a $185 target, while JPMorgan lifted its target to $167 from $158 despite retaining a neutral rating. Benzinga article
• Neutral Sentiment: Options activity surged: Traders purchased 16,651 call options, more than double typical volume, signaling strong speculative interest but potentially adding short-term volatility.
• Negative Sentiment: Potential dilution and execution risk: Akamai issued Anthropic a warrant for up to approximately 5% of its common stock, with about 2% expected to vest initially. Investors must also assess the capital spending and execution required to deliver the expanded cloud capacity. Akamai press release

Akamai Technologies Company Profile

Akamai Technologies, Inc is a global technology company that provides cloud computing, content delivery and cybersecurity services. Its distributed platform helps businesses deliver websites, applications, software downloads, video and other digital content with improved speed, availability and scalability.

The company’s offerings include content delivery and edge computing services, cloud infrastructure, web and application performance solutions, and security products designed to protect applications, application programming interfaces, networks and users from cyber threats.