Akamai Technologies (NASDAQ:AKAM) Trading Down 6.3% Following Analyst Downgrade

Akamai Technologies, Inc. (NASDAQ:AKAM)’s share price fell 6.3% on Friday after Piper Sandler lowered their price target on the stock from $156.00 to $140.00. Piper Sandler currently has a neutral rating on the stock. Akamai Technologies traded as low as $111.04 and last traded at $111.06. 5,342,162 shares changed hands during mid-day trading, an increase of 13% from the average daily volume of 4,708,721 shares. The stock had previously closed at $118.55.

Other analysts also recently issued reports about the company. Raymond James Financial upped their price objective on Akamai Technologies from $140.00 to $170.00 in a research report on Monday, May 11th. Guggenheim lifted their target price on Akamai Technologies from $181.00 to $190.00 and gave the company a “buy” rating in a research report on Friday. Morgan Stanley increased their target price on shares of Akamai Technologies from $120.00 to $165.00 and gave the stock an “overweight” rating in a report on Thursday, May 14th. The Goldman Sachs Group lifted their price target on shares of Akamai Technologies from $76.00 to $87.00 and gave the company a “sell” rating in a report on Friday, May 8th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Akamai Technologies in a research note on Wednesday, June 24th. Twelve analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $144.95.

Insider Transactions at Akamai Technologies

In related news, EVP Kim Salem-Jackson sold 2,300 shares of Akamai Technologies stock in a transaction that occurred on Wednesday, June 10th. The stock was sold at an average price of $135.57, for a total value of $311,811.00. Following the transaction, the executive vice president directly owned 59,210 shares of the company’s stock, valued at $8,027,099.70. The trade was a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Robert Blumofe sold 243 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $129.41, for a total value of $31,446.63. Following the completion of the sale, the chief technology officer owned 31,006 shares in the company, valued at $4,012,486.46. The trade was a 0.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.30% of the company’s stock.

Akamai Technologies News Summary

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

• Positive Sentiment: Akamai reported second-quarter adjusted EPS of $1.59 and revenue of approximately $1.10 billion, exceeding consensus estimates of $1.57 and $1.09 billion, respectively. Revenue rose 5.4% year over year, supported by demand for cloud infrastructure and cybersecurity services. Reuters earnings article
• Positive Sentiment: The company announced a cloud infrastructure services contract worth more than $600 million, reinforcing the investment case that Akamai can benefit from artificial intelligence and robotics-related workloads. Barron’s Akamai AI article
• Positive Sentiment: Akamai’s third-quarter EPS guidance of $1.60–$1.80 and full-year EPS guidance of $6.40–$7.05 are above analyst expectations, providing some support for forward earnings sentiment.
• Neutral Sentiment: Guggenheim raised its price target to $190 and maintained a “buy” rating, indicating substantial potential upside if AI-led cloud growth translates into stronger profits.
• Neutral Sentiment: Analysts see strong AI-led growth, but the near-term outlook remains dependent on execution as Akamai expands infrastructure and cybersecurity capacity. Seeking Alpha Akamai growth article
• Negative Sentiment: Second-quarter EPS declined from $1.73 a year earlier, while higher infrastructure spending tied to AI expansion is pressuring margins and raising concerns about the timing of returns on investment.
• Negative Sentiment: Although full-year EPS guidance exceeded expectations, revenue guidance of $4.4–$4.5 billion is roughly in line with or slightly below the $4.5 billion consensus, limiting the upside reaction.
• Negative Sentiment: Piper Sandler lowered its price target to $140 and changed its rating to “neutral,” adding to caution following the earnings release.

Hedge Funds Weigh In On Akamai Technologies

A number of hedge funds have recently bought and sold shares of the company. Sarver Vrooman Wealth Advisors acquired a new stake in Akamai Technologies during the 4th quarter worth about $31,000. Root Financial Partners LLC boosted its position in shares of Akamai Technologies by 45.8% during the 4th quarter. Root Financial Partners LLC now owns 350 shares of the technology infrastructure company’s stock valued at $31,000 after purchasing an additional 110 shares in the last quarter. CYBER HORNET ETFs LLC acquired a new stake in Akamai Technologies during the second quarter worth approximately $32,000. WealthCollab LLC grew its stake in Akamai Technologies by 154.2% during the fourth quarter. WealthCollab LLC now owns 394 shares of the technology infrastructure company’s stock worth $34,000 after purchasing an additional 239 shares during the period. Finally, Align Financial LLC bought a new stake in Akamai Technologies in the fourth quarter worth approximately $34,000. Institutional investors own 94.28% of the company’s stock.

Akamai Technologies Stock Performance

The stock has a market capitalization of $16.15 billion, a price-to-earnings ratio of 37.48, a price-to-earnings-growth ratio of 5.19 and a beta of 0.63. The company has a 50 day simple moving average of $125.55 and a 200-day simple moving average of $115.83. The company has a quick ratio of 2.06, a current ratio of 2.06 and a debt-to-equity ratio of 0.84.

Akamai Technologies (NASDAQ:AKAM) last announced its quarterly earnings data on Thursday, August 6th. The technology infrastructure company reported $1.59 EPS for the quarter, topping the consensus estimate of $1.57 by $0.02. Akamai Technologies had a net margin of 10.20% and a return on equity of 12.96%. The company had revenue of $1.10 billion during the quarter, compared to the consensus estimate of $1.09 billion. During the same quarter last year, the firm posted $1.73 EPS. The company’s quarterly revenue was up 5.4% on a year-over-year basis. Akamai Technologies has set its Q3 2026 guidance at 1.600-1.800 EPS and its FY 2026 guidance at 6.400-7.050 EPS. As a group, equities research analysts expect that Akamai Technologies, Inc. will post 3.91 EPS for the current fiscal year.

About Akamai Technologies

Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.

The company’s core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.