Akamai Technologies (AKAM) Sees Strong Trading Volume Following Analyst Upgrade

Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) saw an uptick in trading volume on Wednesday after ValuEngine upgraded the stock from a hold rating to a buy rating. 135,917 shares changed hands during mid-day trading, a decline of 94% from the previous session’s volume of 2,094,833 shares.The stock last traded at $73.09 and had previously closed at $72.55.

AKAM has been the subject of a number of other research reports. Piper Jaffray Companies reiterated an “overweight” rating and set a $89.00 price target on shares of Akamai Technologies in a report on Friday, July 20th. B. Riley lifted their price target on Akamai Technologies from $97.00 to $105.00 and gave the stock a “buy” rating in a report on Tuesday. BidaskClub cut Akamai Technologies from a “sell” rating to a “strong sell” rating in a report on Tuesday, October 9th. Deutsche Bank cut Akamai Technologies from a “buy” rating to a “hold” rating and reduced their price target for the stock from $90.00 to $80.00 in a report on Wednesday, August 1st. Finally, DA Davidson upgraded Akamai Technologies from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $82.00 to $93.00 in a report on Monday, September 10th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus target price of $80.29.

In other news, EVP Robert Blumofe sold 4,000 shares of the business’s stock in a transaction that occurred on Thursday, August 2nd. The stock was sold at an average price of $71.20, for a total transaction of $284,800.00. Following the completion of the sale, the executive vice president now owns 19,951 shares in the company, valued at $1,420,511.20. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Aaron Ahola sold 1,123 shares of the business’s stock in a transaction that occurred on Thursday, September 6th. The stock was sold at an average price of $73.63, for a total value of $82,686.49. Following the sale, the senior vice president now owns 4,035 shares of the company’s stock, valued at approximately $297,097.05. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 44,215 shares of company stock valued at $3,306,814. Corporate insiders own 3.20% of the company’s stock.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. USA Financial Portformulas Corp raised its position in shares of Akamai Technologies by 9.0% in the third quarter. USA Financial Portformulas Corp now owns 126,531 shares of the technology infrastructure company’s stock valued at $9,266,000 after buying an additional 10,479 shares in the last quarter. Robeco Institutional Asset Management B.V. grew its stake in shares of Akamai Technologies by 38.7% in the third quarter. Robeco Institutional Asset Management B.V. now owns 961,706 shares of the technology infrastructure company’s stock worth $70,347,000 after purchasing an additional 268,357 shares during the last quarter. Hussman Strategic Advisors Inc. grew its stake in shares of Akamai Technologies by 44.0% in the third quarter. Hussman Strategic Advisors Inc. now owns 36,000 shares of the technology infrastructure company’s stock worth $2,633,000 after purchasing an additional 11,000 shares during the last quarter. Regentatlantic Capital LLC grew its stake in shares of Akamai Technologies by 31.7% in the third quarter. Regentatlantic Capital LLC now owns 6,066 shares of the technology infrastructure company’s stock worth $444,000 after purchasing an additional 1,461 shares during the last quarter. Finally, Harel Insurance Investments & Financial Services Ltd. grew its stake in shares of Akamai Technologies by 291.6% in the third quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,762 shares of the technology infrastructure company’s stock worth $128,000 after purchasing an additional 1,312 shares during the last quarter. Institutional investors own 85.82% of the company’s stock.

The company has a current ratio of 2.19, a quick ratio of 2.19 and a debt-to-equity ratio of 0.25. The company has a market capitalization of $10.50 billion, a price-to-earnings ratio of 38.77, a price-to-earnings-growth ratio of 1.72 and a beta of 0.47.

Akamai Technologies (NASDAQ:AKAM) last issued its quarterly earnings data on Monday, October 29th. The technology infrastructure company reported $0.94 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.11. Akamai Technologies had a net margin of 8.39% and a return on equity of 11.86%. The company had revenue of $669.63 million for the quarter, compared to analysts’ expectations of $664.17 million. During the same quarter in the previous year, the firm posted $0.62 earnings per share. Akamai Technologies’s revenue for the quarter was up 7.2% on a year-over-year basis. On average, equities analysts anticipate that Akamai Technologies, Inc. will post 2.47 earnings per share for the current fiscal year.

Akamai Technologies announced that its Board of Directors has approved a share buyback plan on Monday, October 29th that permits the company to buyback $1.10 billion in outstanding shares. This buyback authorization permits the technology infrastructure company to buy up to 10.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Akamai Technologies Company Profile (NASDAQ:AKAM)

Akamai Technologies, Inc provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The company offers Web and mobile performance solutions, such as Ion, a situational performance solution; Dynamic Site Accelerator that helps in consistent Website performance; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of Websites in a pre-production environment; mPulse that provides real-time Website performance data to provide insight about end-user experiences on a Website; and Global Traffic Management, a fault-tolerant solution.

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