Akamai Technologies (NASDAQ:AKAM) Stock Price Down 6.3% on Analyst Downgrade

Akamai Technologies, Inc. (NASDAQ:AKAM) shares traded down 6.3% during trading 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. Approximately 5,342,162 shares traded 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.

Several other analysts have also issued reports on AKAM. Raymond James Financial boosted their price target on shares of Akamai Technologies from $140.00 to $170.00 in a research report on Monday, May 11th. Zacks Research raised shares of Akamai Technologies from a “strong sell” rating to a “hold” rating in a report on Monday, July 13th. JPMorgan Chase & Co. increased their target price on Akamai Technologies from $72.00 to $100.00 in a research report on Friday, May 8th. Craig Hallum raised Akamai Technologies from a “hold” rating to a “buy” rating and set a $190.00 price target for the company in a report on Friday, May 8th. Finally, Susquehanna lifted their price target on Akamai Technologies from $120.00 to $175.00 and gave the company a “positive” rating in a research report on Monday, May 11th. Twelve investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $144.95.

Insider Activity at Akamai Technologies

In other news, EVP Kim Salem-Jackson sold 2,300 shares of the company’s stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $135.57, for a total value of $311,811.00. Following the transaction, the executive vice president owned 59,210 shares of the company’s stock, valued at approximately $8,027,099.70. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed 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 stock in a transaction on Thursday, June 18th. The stock was 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. This trade represents a 0.78% decrease in their position. 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. Corporate insiders own 2.30% of the company’s stock.

Trending Headlines about Akamai Technologies

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.

Institutional Investors Weigh In On Akamai Technologies

A number of institutional investors and hedge funds have recently bought and sold shares of AKAM. First Trust Advisors LP grew its stake in Akamai Technologies by 16.5% in the 4th quarter. First Trust Advisors LP now owns 6,752,000 shares of the technology infrastructure company’s stock worth $589,112,000 after buying an additional 957,345 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Akamai Technologies by 11.2% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,464,793 shares of the technology infrastructure company’s stock worth $397,881,000 after acquiring an additional 349,451 shares during the last quarter. Invesco Ltd. grew its position in Akamai Technologies by 5.8% in the third quarter. Invesco Ltd. now owns 3,239,099 shares of the technology infrastructure company’s stock worth $245,394,000 after acquiring an additional 177,756 shares in the last quarter. Norges Bank purchased a new position in Akamai Technologies in the fourth quarter worth $192,959,000. Finally, Alyeska Investment Group L.P. increased its stake in Akamai Technologies by 34.5% in the fourth quarter. Alyeska Investment Group L.P. now owns 2,197,218 shares of the technology infrastructure company’s stock valued at $191,707,000 after acquiring an additional 563,178 shares during the last quarter. 94.28% of the stock is owned by hedge funds and other institutional investors.

Akamai Technologies Stock Down 6.3%

The company has a quick ratio of 2.06, a current ratio of 2.06 and a debt-to-equity ratio of 0.84. The stock has a 50-day simple moving average of $125.55 and a two-hundred day simple moving average of $115.83. The firm has a market cap of $16.15 billion, a PE ratio of 37.48, a P/E/G ratio of 5.19 and a beta of 0.63.

Akamai Technologies (NASDAQ:AKAM) last posted its quarterly earnings data on Thursday, August 6th. The technology infrastructure company reported $1.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.57 by $0.02. The firm had revenue of $1.10 billion during the quarter, compared to analysts’ expectations of $1.09 billion. Akamai Technologies had a return on equity of 12.96% and a net margin of 10.20%.The company’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the prior year, the business earned $1.73 EPS. 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. Analysts expect that Akamai Technologies, Inc. will post 3.91 earnings per share for the current year.

Akamai Technologies Company Profile

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.