Zacks Investment Research lowered shares of Akamai Technologies, Inc. (NASDAQ:AKAM) from a hold rating to a sell rating in a report released on Monday morning.
According to Zacks, “Akamai's top-line growth continues to be negatively impacted by lower revenues from the large Internet Platform group companies. The newly launched products will take some more time to generate meaningful growth. We note that the stock has underperformed the industry on a year-to-date basis. Moreover, estimates have been going down ahead of the company's Q3 earnings release. However, we believe Akamai is likely to benefit from the rising demand for cloud infrastructure solutions, security, mobile products and online video. Moreover, the expanding security portfolio including Kona Site Defender, Prolexic, Bot Manager and Web Application Protector is the key catalyst. The recently announced Nominum buyout will boost carrier and enterprise customer base in the long haul.”
Other research analysts also recently issued research reports about the stock. B. Riley reiterated a buy rating and issued a $60.00 target price on shares of Akamai Technologies in a research note on Friday, July 28th. BidaskClub downgraded shares of Akamai Technologies from a strong-buy rating to a buy rating in a research note on Saturday, August 19th. Piper Jaffray Companies reiterated a buy rating and issued a $57.00 target price on shares of Akamai Technologies in a research note on Wednesday, July 26th. DA Davidson set a $57.00 target price on shares of Akamai Technologies and gave the stock a hold rating in a research note on Thursday, October 12th. Finally, Cowen and Company reiterated a hold rating and issued a $60.00 target price on shares of Akamai Technologies in a research note on Friday, July 28th. Three investment analysts have rated the stock with a sell rating, twelve have issued a hold rating and twelve have issued a buy rating to the company. The company has a consensus rating of Hold and an average price target of $59.64.
Shares of Akamai Technologies (NASDAQ:AKAM) opened at 51.65 on Monday. The firm has a 50-day moving average of $48.63 and a 200 day moving average of $50.34. The stock has a market cap of $8.85 billion, a price-to-earnings ratio of 29.50 and a beta of 0.65. Akamai Technologies has a 1-year low of $44.65 and a 1-year high of $71.64.
Akamai Technologies (NASDAQ:AKAM) last issued its earnings results on Tuesday, July 25th. The technology infrastructure company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.60 by $0.02. The firm had revenue of $608.90 million for the quarter, compared to the consensus estimate of $604.51 million. Akamai Technologies had a net margin of 9.49% and a return on equity of 7.08%. The business’s revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.64 earnings per share. Equities research analysts forecast that Akamai Technologies will post $2.52 earnings per share for the current year.
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In other news, Director Frederic V. Salerno acquired 5,000 shares of Akamai Technologies stock in a transaction dated Thursday, July 27th. The stock was purchased at an average cost of $46.83 per share, with a total value of $234,150.00. Following the completion of the purchase, the director now directly owns 62,192 shares in the company, valued at approximately $2,912,451.36. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Rick M. Mcconnell sold 7,579 shares of the stock in a transaction on Tuesday, October 10th. The stock was sold at an average price of $51.00, for a total transaction of $386,529.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have acquired 46,224 shares of company stock valued at $2,245,074. 3.20% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. Advisory Services Network LLC increased its stake in shares of Akamai Technologies by 9.0% in the second quarter. Advisory Services Network LLC now owns 2,025 shares of the technology infrastructure company’s stock worth $101,000 after purchasing an additional 168 shares in the last quarter. Westwood Holdings Group Inc. purchased a new stake in shares of Akamai Technologies in the second quarter worth $117,000. BB&T Investment Services Inc. purchased a new stake in shares of Akamai Technologies in the second quarter worth $119,000. FTB Advisors Inc. increased its stake in shares of Akamai Technologies by 2.4% in the second quarter. FTB Advisors Inc. now owns 2,538 shares of the technology infrastructure company’s stock worth $125,000 after purchasing an additional 59 shares in the last quarter. Finally, OLD Mutual Customised Solutions Proprietary Ltd. increased its stake in shares of Akamai Technologies by 79.4% in the first quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 2,332 shares of the technology infrastructure company’s stock worth $139,000 after purchasing an additional 1,032 shares in the last quarter. 84.40% of the stock is owned by hedge funds and other institutional investors.
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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