Akamai Technologies’ (AKAM) Buy Rating Reiterated 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 target on the technology infrastructure company’s stock. DA Davidson’s price target suggests a potential upside of 58.91% from the stock’s previous close.

Several other analysts have also issued reports on AKAM. JPMorgan Chase & Co. increased their target price on Akamai Technologies from $158.00 to $167.00 and gave the stock a “neutral” rating in a report on Friday. HSBC downgraded Akamai Technologies from a “buy” rating to a “hold” rating and dropped their price target for the company from $171.00 to $123.00 in a research note on Monday, August 10th. Bank of America increased their price objective on shares of Akamai Technologies from $175.00 to $185.00 and gave the stock a “buy” rating in a research note on Friday. TD Cowen boosted their target price on shares of Akamai Technologies from $140.00 to $149.00 and gave the company a “hold” rating in a research report on Friday. Finally, Citigroup reduced their price target on shares of Akamai Technologies from $160.00 to $122.00 and set a “neutral” rating on the stock in a research report on Friday, September 4th. Thirteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $149.29.

Akamai Technologies Stock Performance

Shares of AKAM traded up $6.01 during mid-day trading on Friday, hitting $116.42. 24,957,676 shares of the company’s stock were exchanged, compared to its average volume of 4,596,178. 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 has a 52 week low of $70.82 and a 52 week high of $165.45. The stock’s 50-day simple moving average is $113.10 and its 200-day simple moving average is $118.76. The firm has a market cap of $16.73 billion, a price-to-earnings ratio of 41.92, a price-to-earnings-growth ratio of 5.49 and a beta of 0.63.

Akamai Technologies (NASDAQ:AKAM) last issued its quarterly earnings results on Thursday, August 6th. The technology infrastructure company reported $1.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.02. Akamai Technologies had a return on equity of 11.32% and a net margin of 9.51%.The business had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.09 billion. During the same period in the previous year, the company posted $1.73 earnings per share. The firm’s revenue for the quarter was up 5.4% compared to the same quarter last year. 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. On average, equities research analysts expect that Akamai Technologies will post 3.63 EPS for the current year.

Insider Buying and Selling at Akamai Technologies

In related news, EVP Paul Joseph sold 3,100 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was 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 owned 28,472 shares of the company’s stock, valued at $3,007,497.36. This trade represents a 9.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 2.30% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Norges Bank acquired a new stake in Akamai Technologies in the fourth quarter worth $192,959,000. Edmond DE Rothschild Holding S.A. purchased a new position in shares of Akamai Technologies during the 2nd quarter valued at $222,046,000. William Blair Investment Management LLC bought a new position in shares of Akamai Technologies during the 2nd quarter worth $181,508,000. Legal & General Group Plc bought a new position in shares of Akamai Technologies during the 2nd quarter worth $159,564,000. Finally, Atreides Management LP purchased a new stake in Akamai Technologies in the 2nd quarter worth about $107,640,000. 94.28% of the stock is owned by institutional investors.

Key Akamai Technologies News

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.