As of Wednesday close, Akamai Technologies Inc.’s (NASDAQ:AKAM) stock was up $0.24, moving up 0.23 percent to $104.64. The average number of shares traded per day over the past five days has been 1,223,780 shares. 5 times new highs have been achieved over the past 5 days, with a $2.20 gain in that time frame. In the last twenty days, the average volume was 1,962,015, while in the previous 50 days, it was 1,468,624.
Since last month, AKAM stock rose 11.30%. Shares of the company fell to $91.84 on 08/03/23, the lowest level in the past month. A 52-week high of $107.47 was reached on 08/09/23 after having rallying from a 52-week low of $70.65. Since the beginning of this year, AKAM’s stock price has risen by 24.13% or $20.34, and marked a new high 19 times. However, the stock has declined by -2.63% since its 52-week high.
AKAM stock investors should be aware that Akamai Technologies Inc. (AKAM) stock had its last reported insider trading activity 6 days ago on Aug 25. Williams Anthony P, the EVP and CHRO of the company, disposed of 2,880 shares for $103.01 on Aug 25. It resulted in a $296,669 divestment by the insider. Blumofe Robert sold 2,000 shares at an average price of $99.53 on Aug 18. The insider now owns 17,609 shares following the transaction. On Aug 09, COO & GM Edge Technology Group Karon Adam sold 10,427 shares at $101.08 apiece. The transaction was valued at $1,053,961.
Valuation Metrics
Right now, Akamai Technologies Inc. (AKAM) has a P/E ratio of about 32.06. The stock’s beta is 0.76. Besides these, the trailing price-to-sales (P/S) ratio of 4.29, the price-to-book (PB) ratio of 3.71, and the price-to-cash flow ratio of 22.32 may also be considered.
Financial Health
In the three months ended June 29, Akamai Technologies Inc.’s quick ratio stood at 2.00, while its current ratio was 2.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.53, and the total debt-to-equity ratio was 0.54. On the profitability front, the trailing twelve-month gross margin is 60.80% percent. In the year ended June 29, EBITDA margin amounted to 36.27%, whereas operating margins totaled 16.50%. Based on annual data, AKAM earned $2.23 billion in gross profit and brought in $3.62 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 8.30%. Return on equity (ROE) for the past 12 months was 12.00%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. AKAM’s revenue rose 3.46% to $915.7 million during the quarter, while net income inched up to $935.72 million. While analysts expected Akamai Technologies Inc. to report $1.41 quarterly earnings, the actual figure was $1.49 per share, beating the consensus estimate by 5.70%. During the quarter, the company generated $290.01 million in EBITDA. The liabilities of Akamai Technologies Inc. were 4.06 billion at the end of its most recent quarter ended June 29, and its total debt was $3.28 billion. The value of shareholders’ equity is $151.71 million.
Technical Picture
This quick technical analysis looks at Akamai Technologies Inc.’s (AKAM) price momentum. With a historical volatility rate of 9.40%, the RSI 9-day stood at 72.27% on 30 August.
With respect to its five-day moving average, the current Akamai Technologies Inc. price is up by +2.15% percent or $2.20. At present, AKAM shares trade +13.22% above its 20-day simple moving average and +32.59% percent above its 100-day simple moving average. However, the stock is currently trading approximately +15.39% above its SMA50 and +12.61% above its SMA200.
Stochastic coefficient K was 80.34% and Stochastic coefficient D was 69.94%, while ATR was 1.68. Given the Stochastic reading of 94.76% for the 14-day period, the RSI (14) reading has been calculated as 70.19%. As of today, the MACD Oscillator reading stands at 1.65, while the 14-day reading stands at 1.57.
With a median target price of $108.00, the current consensus forecast for the stock is $74.00 – $125.00. Based on these forecasts, analysts predict Akamai Technologies Inc. (AKAM) will achieve an average price target of $105.59.
