Akamai Technologies Inc. (NASDAQ:AKAM) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Tuesday.
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 equities research analysts also recently commented on the company. Wells Fargo & Co. upgraded Akamai Technologies from a “market perform” rating to an “outperform” rating and cut their price objective for the company from $59.20 to $51.41 in a research report on Friday, August 12th. Pacific Crest reissued a “hold” rating on shares of Akamai Technologies in a research note on Tuesday, August 2nd. KeyCorp downgraded shares of Akamai Technologies to an “overweight” rating in a research note on Wednesday, July 27th. Piper Jaffray Cos. reissued a “buy” rating and set a $64.00 target price on shares of Akamai Technologies in a research note on Tuesday, August 9th. Finally, SunTrust Banks Inc. started coverage on shares of Akamai Technologies in a research note on Thursday, July 21st. They set a “buy” rating and a $66.00 target price on the stock. Two analysts have rated the stock with a sell rating, eleven have assigned a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $61.35.
Akamai Technologies (NASDAQ:AKAM) opened at 52.28 on Tuesday. Akamai Technologies has a 12-month low of $39.43 and a 12-month high of $76.39. The stock has a 50 day moving average price of $52.97 and a 200-day moving average price of $53.30. The stock has a market cap of $9.13 billion, a P/E ratio of 28.69 and a beta of 1.47.
Akamai Technologies (NASDAQ:AKAM) last announced its quarterly earnings data on Tuesday, July 26th. The technology infrastructure company reported $0.64 EPS for the quarter, meeting analysts’ consensus estimates of $0.64. Akamai Technologies had a return on equity of 11.82% and a net margin of 14.31%. The company earned $572 million during the quarter, compared to the consensus estimate of $574.86 million. During the same quarter in the prior year, the firm earned $0.57 EPS. The company’s quarterly revenue was up 5.8% compared to the same quarter last year. On average, equities analysts expect that Akamai Technologies will post $2.57 earnings per share for the current year.
In related news, EVP James Gemmell sold 1,869 shares of the stock in a transaction dated Thursday, July 28th. The shares were sold at an average price of $50.45, for a total value of $94,291.05. Following the completion of the transaction, the executive vice president now owns 7,148 shares of the company’s stock, valued at $360,616.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Paul Sagan sold 23,255 shares of the stock in a transaction dated Thursday, September 15th. The stock was sold at an average price of $51.33, for a total transaction of $1,193,679.15. Following the completion of the transaction, the director now directly owns 65,077 shares of the company’s stock, valued at approximately $3,340,402.41. The disclosure for this sale can be found here. 2.70% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of AKAM. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in Akamai Technologies during the second quarter valued at about $397,000. Kentucky Retirement Systems acquired a new position in Akamai Technologies during the second quarter valued at about $835,000. Mason Street Advisors LLC acquired a new position in Akamai Technologies during the second quarter valued at about $1,323,000. Gagnon Securities LLC raised its position in Akamai Technologies by 0.5% in the second quarter. Gagnon Securities LLC now owns 18,727 shares of the technology infrastructure company’s stock valued at $1,047,000 after buying an additional 100 shares during the period. Finally, Perigon Wealth Management LLC raised its position in Akamai Technologies by 37.1% in the second quarter. Perigon Wealth Management LLC now owns 16,767 shares of the technology infrastructure company’s stock valued at $938,000 after buying an additional 4,536 shares during the period. 89.88% of the stock is owned by hedge funds and other institutional investors.
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.
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