Akamai Technologies, Inc. (AKAM) Raised to Hold at Zacks Investment Research
Zacks Investment Research upgraded shares of Akamai Technologies, Inc. (NASDAQ:AKAM) from a sell rating to a hold rating in a research report released on Monday.
According to Zacks, “Akamai’s third-quarter 2017 benefited from strong media division traffic and growing adoption of cloud-based security solutions. Management is also optimistic about robust over-the top (OTT) content viewing. The acquisition of Nominum, which is expected to be completed in the later part of the year, is anticipated to benefit the company’s flagship Enterprise Threat Protector solution. However, top-line growth continues to be negatively impacted by lower revenues from the large Internet Platform group companies. Moreover, we expect the newly launched products to take some more time to generate meaningful growth. Additionally, the integration of SOASTA and Nominum is anticipated to negatively impact EBITDA margins in the near term. Notably, the company has underperformed the industry on a year-to-date basis.”
Several other equities research analysts have also commented on AKAM. Nomura upped their price objective on Akamai Technologies from $47.00 to $50.00 and gave the stock a neutral rating in a research report on Wednesday, October 25th. Deutsche Bank AG restated a buy rating and issued a $75.00 price objective on shares of Akamai Technologies in a research report on Wednesday, October 25th. Cowen and Company restated a hold rating and issued a $59.00 price objective on shares of Akamai Technologies in a research report on Friday, October 27th. SunTrust Banks, Inc. restated a hold rating on shares of Akamai Technologies in a research report on Wednesday, October 25th. Finally, B. Riley restated a buy rating and issued a $70.00 price objective (up previously from $60.00) on shares of Akamai Technologies in a research report on Wednesday, October 25th. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and twelve have issued a buy rating to the stock. Akamai Technologies presently has an average rating of Hold and a consensus price target of $60.73.
Akamai Technologies (NASDAQ:AKAM) last issued its earnings results on Tuesday, October 24th. The technology infrastructure company reported $0.62 EPS for the quarter, beating the Zacks’ consensus estimate of $0.59 by $0.03. The firm had revenue of $621.00 million for the quarter, compared to analyst estimates of $610.66 million. Akamai Technologies had a return on equity of 10.28% and a net margin of 11.84%. Akamai Technologies’s revenue for the quarter was up 6.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.68 earnings per share.
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In related news, CEO F Thomson Leighton bought 21,554 shares of the business’s stock in a transaction on Tuesday, August 15th. The stock was acquired at an average cost of $46.91 per share, with a total value of $1,011,098.14. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider William Wheaton sold 10,000 shares of the firm’s stock in a transaction on Monday, October 2nd. The stock was sold at an average price of $49.81, for a total value of $498,100.00. The disclosure for this sale can be found here. Insiders sold a total of 28,438 shares of company stock valued at $1,463,695 over the last ninety days. Corporate insiders own 3.20% of the company’s stock.
Institutional investors and hedge funds have recently modified their holdings of the business. Advisory Services Network LLC increased its stake in shares of Akamai Technologies by 9.0% in the 2nd quarter. Advisory Services Network LLC now owns 2,025 shares of the technology infrastructure company’s stock worth $101,000 after acquiring an additional 168 shares during the last quarter. OLD Mutual Customised Solutions Proprietary Ltd. increased its stake in shares of Akamai Technologies by 79.4% in the 1st quarter. OLD Mutual Customised Solutions Proprietary Ltd. now owns 2,332 shares of the technology infrastructure company’s stock worth $139,000 after acquiring an additional 1,032 shares during the last quarter. Westwood Holdings Group Inc. acquired a new stake in shares of Akamai Technologies in the 2nd quarter worth $117,000. BB&T Investment Services Inc. acquired a new stake in shares of Akamai Technologies in the 2nd quarter worth $119,000. Finally, FTB Advisors Inc. increased its stake in shares of Akamai Technologies by 2.4% in the 2nd quarter. FTB Advisors Inc. now owns 2,538 shares of the technology infrastructure company’s stock worth $125,000 after acquiring an additional 59 shares during the last quarter. 84.28% of the stock is owned by institutional investors and hedge funds.
About Akamai Technologies
Akamai Technologies, Inc is engaged in providing cloud services for delivering, optimizing and securing content and business applications over the Internet. The Company is involved in offering content delivery network (CDN) services. Its services include the delivery of content, applications and software over the Internet, as well as mobile and security solutions.
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