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 research analysts have also weighed in on AKAM. KeyCorp reaffirmed a buy rating on shares of Akamai Technologies in a research report on Tuesday, June 7th. Pacific Crest reaffirmed a buy rating and set a $71.00 price objective on shares of Akamai Technologies in a research report on Wednesday, June 8th. Deutsche Bank AG reaffirmed a buy rating on shares of Akamai Technologies in a research report on Wednesday, June 15th. MKM Partners reaffirmed a buy rating and set a $68.00 price objective on shares of Akamai Technologies in a research report on Saturday, July 9th. Finally, JPMorgan Chase & Co. reissued a hold rating on shares of Akamai Technologies in a report on Sunday, July 17th. Two investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company. Akamai Technologies presently has a consensus rating of Hold and a consensus price target of $61.35.
Akamai Technologies (NASDAQ:AKAM) last posted its quarterly earnings data on Tuesday, July 26th. The technology infrastructure company reported $0.64 earnings per share for the quarter, meeting the Zacks’ consensus estimate of $0.64. Akamai Technologies had a return on equity of 11.82% and a net margin of 14.31%. The company earned $572 million during the quarter, compared to analyst estimates of $574.86 million. During the same quarter last year, the company earned $0.57 EPS. The firm’s revenue for the quarter was up 5.8% on a year-over-year basis.
In other Akamai Technologies news, CEO F Thomson Leighton bought 17,456 shares of the company’s stock in a transaction on Friday, July 15th. The stock was acquired at an average price of $57.28 per share, for a total transaction of $999,879.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP James Gemmell sold 1,869 shares of the business’s stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $50.45, for a total value of $94,291.05. Following the transaction, the executive vice president now owns 7,148 shares of the company’s stock, valued at approximately $360,616.60. The disclosure for this sale can be found here. Company insiders own 2.70% of the company’s stock.
Hedge funds and other institutional investors have recently made changes to their positions in the stock. Kentucky Retirement Systems Insurance Trust Fund acquired a new position in shares of Akamai Technologies during the second quarter valued at about $397,000. Kentucky Retirement Systems acquired a new position in shares of Akamai Technologies during the second quarter valued at about $835,000. Mason Street Advisors LLC acquired a new position in shares of Akamai Technologies during the second quarter valued at about $1,323,000. Gagnon Securities LLC raised its position in shares of Akamai Technologies by 0.5% in the second quarter. Gagnon Securities LLC now owns 18,727 shares of the technology infrastructure company’s stock valued at $1,047,000 after buying an additional 100 shares during the period. Finally, Perigon Wealth Management LLC raised its position in shares of Akamai Technologies by 37.1% in the second quarter. Perigon Wealth Management LLC now owns 16,767 shares of the technology infrastructure company’s stock valued at $938,000 after buying an additional 4,536 shares during the period. Institutional investors and hedge funds own 89.88% of the company’s stock.
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.
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