Akamai Technologies, Inc. (AKAM) Cut to “Sell” at Zacks Investment Research
Zacks Investment Research cut shares of Akamai Technologies, Inc. (NASDAQ:AKAM) from a hold rating to a sell rating in a research report report published 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.”
Several other research firms also recently issued reports on AKAM. Wells Fargo & Company set a $57.00 price objective on shares of Akamai Technologies and gave the stock a hold rating in a report on Tuesday, October 10th. B. Riley reaffirmed a buy rating and set a $66.00 price objective on shares of Akamai Technologies in a report on Thursday, October 12th. Piper Jaffray Companies reaffirmed a buy rating and set a $57.00 price objective on shares of Akamai Technologies in a report on Wednesday, July 26th. Goldman Sachs Group, Inc. (The) reaffirmed a sell rating and set a $46.00 price objective (down from $52.00) on shares of Akamai Technologies in a report on Friday, June 30th. Finally, Stifel Nicolaus reaffirmed a hold rating and set a $56.00 price objective (down from $58.00) on shares of Akamai Technologies in a report on Wednesday, July 26th. Three analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twelve have issued a buy rating to the company. Akamai Technologies currently has an average rating of Hold and an average price target of $59.64.
Akamai Technologies (NASDAQ AKAM) opened at 51.00 on Monday. The company’s 50 day moving average is $48.49 and its 200 day moving average is $50.33. Akamai Technologies has a 12-month low of $44.65 and a 12-month high of $71.64. The firm has a market cap of $8.74 billion, a price-to-earnings ratio of 29.13 and a beta of 0.65.
Akamai Technologies (NASDAQ:AKAM) last posted its quarterly earnings data on Tuesday, July 25th. The technology infrastructure company reported $0.62 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.60 by $0.02. The business had revenue of $608.90 million during the quarter, compared to the consensus estimate of $604.51 million. Akamai Technologies had a net margin of 12.67% and a return on equity of 10.97%. Akamai Technologies’s quarterly revenue was up 6.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.64 EPS. On average, equities analysts anticipate that Akamai Technologies will post $2.51 earnings per share for the current year.
In other news, CEO F Thomson Leighton bought 21,554 shares of the company’s stock in a transaction that occurred on Tuesday, August 15th. The stock was acquired at an average price of $46.91 per share, for a total transaction of $1,011,098.14. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider William Wheaton sold 10,000 shares of the stock in a transaction dated Monday, October 2nd. The stock was sold at an average price of $49.81, for a total transaction of $498,100.00. The disclosure for this sale can be found here. In the last 90 days, insiders bought 46,224 shares of company stock valued at $2,245,074. Corporate insiders own 3.20% of the company’s stock.
Institutional investors have recently made changes to their positions in the stock. Advisory Services Network LLC increased its position in shares of Akamai Technologies by 9.0% during the 2nd 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. OLD Mutual Customised Solutions Proprietary Ltd. increased its position in shares of Akamai Technologies by 79.4% during the 1st 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. Westwood Holdings Group Inc. acquired a new stake in shares of Akamai Technologies during the 2nd quarter worth about $117,000. BB&T Investment Services Inc. acquired a new stake in shares of Akamai Technologies during the 2nd quarter worth about $119,000. Finally, FTB Advisors Inc. increased its position in shares of Akamai Technologies by 2.4% during the 2nd 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. Institutional investors and hedge funds own 84.40% of the company’s stock.
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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