Akamai Technologies (NASDAQ:AKAM) Shares Gap Down on Analyst Downgrade

Akamai Technologies, Inc. (NASDAQ:AKAM)’s stock price gapped down prior to trading on Monday after Robert W. Baird lowered their price target on the stock from $140.00 to $92.00. The stock had previously closed at $83.09, but opened at $78.73. Robert W. Baird currently has a neutral rating on the stock. Akamai Technologies shares last traded at $81.3390, with a volume of 1,525,565 shares.

Other equities research analysts also recently issued research reports about the company. Citigroup dropped their price objective on Akamai Technologies from $160.00 to $122.00 and set a “neutral” rating for the company in a report on Friday, September 4th. Evercore restated an “outperform” rating and set a $150.00 target price on shares of Akamai Technologies in a report on Friday. JPMorgan Chase & Co. raised their target price on Akamai Technologies from $158.00 to $167.00 and gave the stock a “neutral” rating in a report on Friday, September 25th. Weiss Ratings lowered Akamai Technologies from a “hold (c)” rating to a “hold (c-)” rating in a research report on Monday, October 19th. Finally, Scotiabank lowered their price target on Akamai Technologies from $180.00 to $120.00 and set a “sector outperform” rating for the company in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Akamai Technologies has an average rating of “Moderate Buy” and a consensus price target of $137.82.

Insider Buying and Selling at Akamai Technologies

In other news, EVP Paul C. Joseph sold 3,100 shares of Akamai Technologies stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $105.63, for a total transaction of $327,453.00. Following the transaction, the executive vice president owned 28,472 shares in the company, valued at $3,007,497.36. The trade was a 9.82% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Mani Sundaram sold 7,022 shares of Akamai Technologies stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $125.62, for a total value of $882,103.64. Following the transaction, the executive vice president owned 14,625 shares in the company, valued at $1,837,192.50. This trade represents a 32.44% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 12,135 shares of company stock valued at $1,467,221. Company insiders own 2.30% of the company’s stock.

Trending Headlines about Akamai Technologies

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Akamai’s third-quarter EPS of $1.77 beat the $1.67 consensus, while revenue was in line and grew 6.4% year over year. Its earnings call also highlighted cloud infrastructure as a potential growth opportunity. Akamai earnings call coverage
• Neutral Sentiment: Akamai amended its credit agreement to adjust financial covenants. The announcement provided limited detail on the changes, so investors may look for more context about the company’s borrowing flexibility. Credit agreement announcement
• Negative Sentiment: Akamai proposed $2.2 billion of convertible senior notes—$1.1 billion due in 2028 and $1.1 billion due in 2031—to fund cloud infrastructure spending and refinance debt. The added borrowing and potential share dilution may weigh on sentiment, even as the funds support expansion. Convertible notes announcement
• Negative Sentiment: Several firms lowered their price targets. Robert W. Baird cut its target from $140 to $92 and kept a Neutral rating; KeyCorp, DA Davidson, and Susquehanna also reduced targets, adding to cautious analyst sentiment. Baird rating information KeyCorp target coverage DA Davidson target coverage Susquehanna target coverage

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Phoenix Financial Ltd. boosted its holdings in shares of Akamai Technologies by 47.5% during the 3rd quarter. Phoenix Financial Ltd. now owns 3,125 shares of the technology infrastructure company’s stock worth $333,000 after buying an additional 1,007 shares during the period. Migdal Insurance & Financial Holdings Ltd. raised its holdings in Akamai Technologies by 7.3% in the 3rd quarter. Migdal Insurance & Financial Holdings Ltd. now owns 4,500 shares of the technology infrastructure company’s stock valued at $479,000 after acquiring an additional 308 shares during the period. Danske Bank A S raised its holdings in Akamai Technologies by 8,064.1% in the 3rd quarter. Danske Bank A S now owns 89,805 shares of the technology infrastructure company’s stock valued at $9,551,000 after acquiring an additional 88,705 shares during the period. Diversified Trust Co raised its holdings in Akamai Technologies by 2.3% in the 3rd quarter. Diversified Trust Co now owns 8,440 shares of the technology infrastructure company’s stock valued at $898,000 after acquiring an additional 193 shares during the period. Finally, Aberdeen Group plc lifted its position in Akamai Technologies by 3,178.3% during the third quarter. Aberdeen Group plc now owns 203,352 shares of the technology infrastructure company’s stock worth $21,626,000 after acquiring an additional 197,149 shares during the last quarter. Institutional investors own 94.28% of the company’s stock.

Akamai Technologies Price Performance

The company’s 50-day simple moving average is $101.55 and its 200-day simple moving average is $112.24. The company has a debt-to-equity ratio of 1.25, a current ratio of 2.13 and a quick ratio of 1.64. The stock has a market capitalization of $11.79 billion, a price-to-earnings ratio of 31.73, a P/E/G ratio of 3.91 and a beta of 0.65.

Akamai Technologies (NASDAQ:AKAM) last issued its quarterly earnings data on Thursday, November 5th. The technology infrastructure company reported $1.77 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.67 by $0.10. The company had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.12 billion. Akamai Technologies had a return on equity of 10.88% and a net margin of 8.84%. The business’s revenue was up 6.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.86 earnings per share. Akamai Technologies has set its FY 2026 guidance at 6.470-6.680 EPS and its Q4 2026 guidance at 1.500-1.700 EPS. Research analysts forecast that Akamai Technologies, Inc. will post 3.58 earnings per share for the current fiscal year.

Akamai Technologies Company Profile

Akamai Technologies is a technology company that provides cloud computing, cybersecurity and content delivery services. Its distributed platform helps businesses deliver digital content and applications, protect online operations and run workloads closer to users and devices.

The company’s offerings include web and application performance services, protection against cyberattacks, application and API security, and cloud infrastructure through Akamai Connected Cloud. Its services support organizations seeking to improve the speed, availability and security of their websites, applications and online services.

Founded in 1998, Akamai grew from a content delivery network provider into a broader cloud and security company.