Zacks Investment Research cut shares of Akamai Technologies (NASDAQ:AKAM) from a buy rating to a hold rating in a report issued on Thursday, January 4th.
According to Zacks, “Akamai, a leading provider of content delivery network (CDN) is benefiting from growing adoption of cloud-based security solutions. Management is also optimistic about robust over-the top (OTT) content viewing. The acquisition of Nominum is anticipated to benefit the company’s flagship Enterprise Threat Protector solution. With increased adoption of mobile data/apps and growing mobile data traffic Akamai is well positioned for long-term growth. Additionally, strong balance sheet and cash flow will help the company in future acquisitions and share repurchase. However, top-line growth continues to be negatively impacted by lower revenues from the large Internet Platform group companies. Moreover, we expect the newly launched products to take some more time to generate meaningful growth. Notably, the shares have underperformed the industry over the past one year.”
A number of other equities analysts have also issued reports on AKAM. Deutsche Bank reaffirmed a buy rating and set a $75.00 target price on shares of Akamai Technologies in a research report on Wednesday, January 3rd. Guggenheim raised Akamai Technologies from a neutral rating to a buy rating and increased their price objective for the company from $53.00 to $54.00 in a report on Monday, October 2nd. B. Riley reissued a buy rating and issued a $70.00 price objective (up previously from $60.00) on shares of Akamai Technologies in a report on Wednesday, October 25th. Instinet reissued a neutral rating and issued a $47.00 price objective on shares of Akamai Technologies in a report on Friday, October 6th. Finally, SunTrust Banks restated a hold rating on shares of Akamai Technologies in a research note on Wednesday, October 25th. Three investment analysts have rated the stock with a sell rating, twelve have given a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of Hold and an average target price of $63.20.
Akamai Technologies (NASDAQ AKAM) traded up $0.31 during trading hours on Thursday, hitting $65.52. 1,080,000 shares of the stock were exchanged, compared to its average volume of 2,890,000. Akamai Technologies has a 12 month low of $44.65 and a 12 month high of $71.34. The company has a market capitalization of $11,080.00, a price-to-earnings ratio of 39.23, a price-to-earnings-growth ratio of 2.66 and a beta of 0.68. The company has a debt-to-equity ratio of 0.20, a quick ratio of 3.01 and a current ratio of 3.01.
Akamai Technologies (NASDAQ:AKAM) last announced its earnings results on Tuesday, October 24th. The technology infrastructure company reported $0.62 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.59 by $0.03. Akamai Technologies had a net margin of 11.84% and a return on equity of 10.28%. The business had revenue of $621.00 million for the quarter, compared to analyst estimates of $610.66 million. During the same quarter in the previous year, the firm posted $0.68 earnings per share. Akamai Technologies’s revenue was up 6.3% compared to the same quarter last year. research analysts expect that Akamai Technologies will post 1.89 EPS for the current fiscal year.
In other news, CEO F Thomson Leighton acquired 19,670 shares of the stock in a transaction on Monday, October 16th. The shares were purchased at an average price of $50.83 per share, for a total transaction of $999,826.10. Following the transaction, the chief executive officer now directly owns 226,950 shares of the company’s stock, valued at $11,535,868.50. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Aaron Ahola sold 2,893 shares of the stock in a transaction on Monday, October 30th. The stock was sold at an average price of $52.44, for a total value of $151,708.92. Following the transaction, the senior vice president now owns 8,046 shares in the company, valued at approximately $421,932.24. The disclosure for this sale can be found here. In the last quarter, insiders have acquired 55,752 shares of company stock worth $2,999,371 and have sold 71,971 shares worth $4,141,642. 3.20% of the stock is owned by company insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. Advisory Services Network LLC increased its holdings in shares of Akamai Technologies by 9.0% during the second quarter. Advisory Services Network LLC now owns 2,025 shares of the technology infrastructure company’s stock valued at $101,000 after acquiring an additional 168 shares in the last quarter. Westwood Holdings Group Inc. bought a new position in shares of Akamai Technologies in the 2nd quarter worth approximately $117,000. BB&T Investment Services Inc. bought a new position in Akamai Technologies during the 2nd quarter valued at approximately $119,000. FTB Advisors Inc. increased its position in Akamai Technologies by 2.4% during the 2nd quarter. FTB Advisors Inc. now owns 2,538 shares of the technology infrastructure company’s stock valued at $125,000 after buying an additional 59 shares in the last quarter. Finally, Griffin Asset Management Inc. bought a new position in Akamai Technologies during the 2nd quarter valued at approximately $209,000. Institutional investors own 86.33% of the company’s stock.
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About Akamai Technologies
Akamai Technologies, Inc is engaged in providing cloud services for delivering, optimizing and securing content and business applications over the Internet. The Company is involved in offering content delivery network (CDN) services. Its services include the delivery of content, applications and software over the Internet, as well as mobile and security solutions.
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