Akamai Technologies Inc. (NASDAQ:AKAM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
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 have also issued reports on the company. Wells Fargo & Co. raised Akamai Technologies from a “market perform” rating to an “outperform” rating and reduced their target price for the company from $59.20 to $51.41 in a research note on Friday, August 12th. Mizuho reiterated a “buy” rating and issued a $65.00 price target on shares of Akamai Technologies in a report on Monday, October 3rd. Pacific Crest reiterated a “hold” rating on shares of Akamai Technologies in a report on Tuesday, August 2nd. KeyCorp downgraded Akamai Technologies to an “overweight” rating in a report on Wednesday, July 27th. Finally, Piper Jaffray Cos. reiterated a “buy” rating and issued a $64.00 price target on shares of Akamai Technologies in a report on Tuesday, August 9th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and an average target price of $61.50.
Akamai Technologies (NASDAQ:AKAM) traded up 0.16% on Wednesday, hitting $54.95. The stock had a trading volume of 1,162,359 shares. Akamai Technologies has a one year low of $39.43 and a one year high of $76.39. The company’s 50-day moving average price is $53.41 and its 200 day moving average price is $53.25. The firm has a market cap of $9.60 billion, a price-to-earnings ratio of 30.16 and a beta of 1.49.
Akamai Technologies (NASDAQ:AKAM) last posted its earnings results on Tuesday, July 26th. The technology infrastructure company reported $0.64 earnings per share (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 firm had revenue of $572 million for the quarter, compared to analyst estimates of $574.86 million. During the same quarter in the prior year, the company earned $0.57 EPS. Akamai Technologies’s revenue was up 5.8% on a year-over-year basis. Analysts expect that Akamai Technologies will post $2.57 earnings per share for the current year.
In other news, insider Rick M. Mcconnell sold 3,550 shares of the stock in a transaction dated Thursday, July 14th. The shares were sold at an average price of $58.00, for a total transaction of $205,900.00. Following the transaction, the insider now owns 48,926 shares of the company’s stock, valued at $2,837,708. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO F Thomson Leighton purchased 17,456 shares of Akamai Technologies stock in a transaction dated Friday, July 15th. The shares were bought at an average cost of $57.28 per share, for a total transaction of $999,879.68. The disclosure for this purchase can be found here. Insiders own 2.70% of the company’s stock.
Several institutional investors have recently modified their holdings of the company. Legal & General Group Plc boosted its position in shares of Akamai Technologies by 4.0% in the first quarter. Legal & General Group Plc now owns 732,506 shares of the technology infrastructure company’s stock valued at $40,704,000 after buying an additional 27,866 shares during the last quarter. Renaissance Technologies LLC boosted its position in shares of Akamai Technologies by 9.0% in the first quarter. Renaissance Technologies LLC now owns 766,900 shares of the technology infrastructure company’s stock valued at $42,617,000 after buying an additional 63,600 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Akamai Technologies by 2.0% in the first quarter. Geode Capital Management LLC now owns 1,470,277 shares of the technology infrastructure company’s stock valued at $81,542,000 after buying an additional 29,369 shares during the last quarter. PGGM Investments bought a new position in shares of Akamai Technologies during the second quarter valued at approximately $30,442,000. Finally, Franklin Resources Inc. boosted its position in shares of Akamai Technologies by 118.3% in the first quarter. Franklin Resources Inc. now owns 447,688 shares of the technology infrastructure company’s stock valued at $24,878,000 after buying an additional 242,600 shares during the last quarter. 89.88% of the stock is currently owned by institutional investors and hedge funds.
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.