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

Akamai Technologies, Inc. (NASDAQ:AKAM)’s stock price gapped down before the market opened 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 traded.

AKAM has been the subject of several other reports. Wall Street Zen upgraded Akamai Technologies from a “sell” rating to a “hold” rating in a research note on Saturday, October 17th. President Capital increased their price target on Akamai Technologies from $150.00 to $168.00 and gave the stock a “buy” rating in a research report on Wednesday, September 30th. Morgan Stanley lowered their price objective on Akamai Technologies from $165.00 to $149.00 and set an “overweight” rating on the stock in a research note on Monday, November 2nd. DA Davidson dropped their price objective on Akamai Technologies from $150.00 to $125.00 and set a “buy” rating for the company in a report on Friday. Finally, Guggenheim reiterated a “buy” rating on shares of Akamai Technologies in a research report on Friday, October 30th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $137.82.

Insider Activity at Akamai Technologies

In related news, EVP Kim Salem-Jackson sold 2,013 shares of Akamai Technologies stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $128.00, for a total value of $257,664.00. Following the transaction, the executive vice president directly owned 57,197 shares of the company’s stock, valued at $7,321,216. This trade represents a 3.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Joseph sold 3,100 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were 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 of the company’s stock, valued at approximately $3,007,497.36. This represents a 9.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 12,135 shares of company stock valued at $1,467,221 over the last three months. 2.30% of the stock is owned by insiders.

Akamai Technologies News Summary

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 Trading of Akamai Technologies

Several institutional investors and hedge funds have recently modified their holdings of AKAM. Empowered Funds LLC grew its position in Akamai Technologies by 503.6% in the first quarter. Empowered Funds LLC now owns 42,831 shares of the technology infrastructure company’s stock valued at $4,919,000 after acquiring an additional 35,735 shares during the last quarter. QRG Capital Management Inc. raised its stake in Akamai Technologies by 1,716.7% during the second quarter. QRG Capital Management Inc. now owns 32,610 shares of the technology infrastructure company’s stock worth $3,855,000 after acquiring an additional 30,815 shares in the last quarter. PNC Financial Services Group Inc. lifted its holdings in shares of Akamai Technologies by 59.2% in the first quarter. PNC Financial Services Group Inc. now owns 40,593 shares of the technology infrastructure company’s stock worth $4,662,000 after acquiring an additional 15,091 shares during the last quarter. TimesSquare Capital Management LLC bought a new position in shares of Akamai Technologies in the second quarter worth about $27,250,000. Finally, ABN AMRO Bank N.V. bought a new position in shares of Akamai Technologies in the second quarter worth about $9,737,000. 94.28% of the stock is currently owned by institutional investors.

Akamai Technologies Trading Down 1.3%

The business’s 50 day moving average price is $101.55 and its two-hundred day moving average price is $112.24. The company has a current ratio of 2.13, a quick ratio of 1.64 and a debt-to-equity ratio of 1.25. The company 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 announced its quarterly earnings results on Thursday, November 5th. The technology infrastructure company reported $1.77 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.67 by $0.10. The company had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.12 billion. Akamai Technologies had a net margin of 8.84% and a return on equity of 10.88%. The firm’s revenue was up 6.4% on a year-over-year basis. During the same period in the previous year, the firm posted $1.86 EPS. 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. On average, equities analysts predict 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.