Akamai Technologies Inc. (NASDAQ:AKAM) finished Friday with an addition of $1.17 to close at $102.82, an upside of 1.15 percent. An average of 1,212,700 shares of common stock have been traded in the last five days. There was a gain of $1.92 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 1,907,900 shares traded, while the 50-day average volume stands at 1,536,132.
AKAM stock has increased by 9.39% in the last month. The company shares reached their 1-month lowest point of $91.84 on 08/03/23. With the stock rallying to its 52-week high on 08/09/23, shares of the company touched a low of $70.65 and a high of $107.47 in 52 weeks. It has reached a new high 19 times so far this year and achieved 21.97% or $18.52 in price. In spite of this, the price is down -4.33% from the 52-week high.
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Insider Transactions
AKAM stock investors should be aware that Akamai Technologies Inc. (AKAM) stock had its last reported insider trading activity 8 days ago on Aug 18. In this transaction, the insider spent $199,060. COO & GM Edge Technology Group, Karon Adam, disposed of 10,427 shares at a price of $101.08 on Aug 09. The insider now owns more than $1,053,961 worth of shares. Prior to that, Chief Technology Officer Blumofe Robert went on to Sale 3,000 shares at $101.08 each on Aug 09. An amount of $303,240 was transacted.
Valuation Metrics
Akamai Technologies Inc. (AKAM) has a trailing price-to-earnings (P/E) ratio of 31.50. The stock’s beta is 0.75. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 4.24, the price-to-book (PB) ratio at 3.64, and the price-to-cash flow ratio at 22.07.
Financial Health
The quick ratio of Akamai Technologies Inc. for the three months ended June 29 was 2.00, and the current ratio was 2.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.53 and a total debt to equity ratio of 0.54 for the quarter ending June 29. Akamai Technologies Inc.’s EBITDA margin for the year ending June 29 is 36.27%, while its operating margin for the same period stands at 16.50%. Its gross profit as reported stood at $2.23 billion compared to revenue of $3.62 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Akamai Technologies Inc.’s return on assets was 6.20%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $128.82 million in the quarter, while revenues of $97.11 million were grew 7.2%. The analyst consensus anticipated Akamai Technologies Inc.’s latest quarter earnings to come in at $1.41 per share, but it turned out to be $1.49, a 5.70% surprise. For the quarter, EBITDA amounted to $290.01 million. Shareholders own equity worth $151.71 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Akamai Technologies Inc. (AKAM) price momentum. RSI 9-day as of the close on 25 August was 65.62%, suggesting the stock is Neutral, with historical volatility in this time frame at 15.74%.
As of today, AKAM’s price is $101.75 +1.90% or $1.92 from its 5-day moving average. AKAM is currently trading +8.64% higher than its 20-day SMA and +32.02% higher than its 100-day SMA. However, the stock’s current price level is +11.77% above the SMA50 and +22.61% above the SMA200.
The stochastic %K and %D were 64.60% and 62.65%, respectively, and the average true range (ATR) was 1.90. With the 14-day stochastic at 66.57% and the average true range at 1.91, the RSI (14) stands at 65.88%. The stock has reached 0.68 on the 9-day MACD Oscillator while the 14-day reading was at 0.53.
Analyst Ratings
The consensus rating for Akamai Technologies Inc. (AKAM) among analysts is Overweight. According to current brokerage recommendations, 2 brokerage firms advise that investors sell AKAM, while 11 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 7 others rate it as a “buy”.
What is AKAM’s price target for the next 12 months?
Analysts predict a range of price targets between $74.00 and $125.00, with a median target of $108.00. Taking a look at these predictions, the average price target given by analysts for Akamai Technologies Inc. (AKAM) stock is $105.13.
