Akamai Technologies (NASDAQ:AKAM) Reaches New 1-Year Low Following Weak Earnings

Akamai Technologies, Inc. (NASDAQ:AKAM)’s stock price hit a new 52-week low on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $82.67 and last traded at $82.79, with a volume of 4733173 shares traded. The stock had previously closed at $98.03.

The technology infrastructure company reported $1.19 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.52 by ($0.33). Akamai Technologies had a net margin of 12.65% and a return on equity of 14.47%. The firm had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.02 billion.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on AKAM. Needham & Company LLC reaffirmed a “hold” rating on shares of Akamai Technologies in a research note on Friday. TD Cowen lowered Akamai Technologies from a “buy” rating to a “hold” rating and cut their target price for the company from $125.00 to $98.00 in a research note on Friday. Oppenheimer upgraded Akamai Technologies from a “market perform” rating to an “outperform” rating and set a $120.00 price target for the company in a report on Monday, December 2nd. Piper Sandler downgraded Akamai Technologies from an “overweight” rating to a “neutral” rating and lowered their price target for the stock from $112.00 to $100.00 in a report on Friday. Finally, Royal Bank of Canada lowered their price target on Akamai Technologies from $100.00 to $90.00 and set a “sector perform” rating for the company in a report on Friday. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating, ten have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $107.90.

Insider Buying and Selling

In other Akamai Technologies news, Director William Raymond Wagner sold 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 27th. The stock was sold at an average price of $93.38, for a total value of $93,380.00. Following the completion of the transaction, the director now directly owns 15,719 shares in the company, valued at $1,467,840.22. This trade represents a 5.98 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Paul C. Joseph sold 4,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $91.57, for a total value of $366,280.00. Following the completion of the transaction, the executive vice president now owns 23,104 shares of the company’s stock, valued at approximately $2,115,633.28. This represents a 14.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 15,782 shares of company stock worth $1,523,951. 1.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Farther Finance Advisors LLC grew its stake in Akamai Technologies by 85.7% in the third quarter. Farther Finance Advisors LLC now owns 247 shares of the technology infrastructure company’s stock valued at $25,000 after purchasing an additional 114 shares in the last quarter. Itau Unibanco Holding S.A. grew its stake in Akamai Technologies by 99.6% in the fourth quarter. Itau Unibanco Holding S.A. now owns 469 shares of the technology infrastructure company’s stock valued at $45,000 after purchasing an additional 234 shares in the last quarter. SBI Securities Co. Ltd. bought a new position in Akamai Technologies in the fourth quarter valued at approximately $49,000. Bruce G. Allen Investments LLC grew its stake in Akamai Technologies by 38.8% in the fourth quarter. Bruce G. Allen Investments LLC now owns 554 shares of the technology infrastructure company’s stock valued at $53,000 after purchasing an additional 155 shares in the last quarter. Finally, Wolverine Asset Management LLC acquired a new stake in shares of Akamai Technologies in the fourth quarter valued at approximately $57,000. 94.28% of the stock is currently owned by institutional investors.

Akamai Technologies Stock Performance

The company has a market capitalization of $11.53 billion, a price-to-earnings ratio of 23.54, a PEG ratio of 3.50 and a beta of 0.65. The stock has a 50-day moving average price of $96.15 and a 200-day moving average price of $97.90. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.33 and a quick ratio of 1.33.

Akamai Technologies Company Profile

Akamai Technologies, Inc provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance.