The stock of Akamai Technologies Inc. (NASDAQ:AKAM) increased by $1.03 on Tuesday to finish at $106.62, up 0.98 percent. The last five days have seen an average of 2,496,920 shares of common stock traded. 19 times new highs were reached in the current year, with a gain of $22.32. The average number of shares traded over the last 20 days was 1,706,205, while the average volume over the last 50 days totaled 1,666,250.
AKAM stock appreciated 5.67% since last month. On 08/21/23, the company’s shares reached a one-month low of $100.34. The stock touched a high of $107.47 on 08/09/23, after rallying from a low of $70.65 in 52 weeks. The price of AKAM stock has risen by 26.48% or $22.32 this year, reaching a new high 19 times. Still, the stock price is down -0.79% from the 52-week high.
Insider Transactions
AKAM stock investors should be aware that Akamai Technologies Inc. (AKAM) stock had its last reported insider trading activity 2 days ago on Sep 18. On Sep 18, Chief Financial Officer McGowan Edward J sold 2,456 shares at $103.92 each. This transaction resulted in the insider making $255,228. On Sep 15, McGowan Edward J sold 8,640 shares at a price of US$105.45. After the transaction, the insider now owns 18,168 shares. EVP – Global Sales Joseph Paul C had earlier sold 4,000 shares on Sep 15 for $105.67 a share. The transaction was completed for $422,680.
Valuation Metrics
Akamai Technologies Inc. (AKAM) has a trailing price-to-earnings (P/E) ratio of 32.67. Beta for the stock is 0.76. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 4.46, the price-to-book (PB) ratio of 3.78, and the price-to-cash flow ratio of 23.22.
Financial Health
For the three months ended June 29, Akamai Technologies Inc.’s quick ratio was 2.00, while its current ratio was 2.00, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.53, and the total debt to equity ratio is 0.54. As far as profitability goes, gross margin for the trailing twelve months is 60.80% percent. Akamai Technologies Inc.’s EBITDA margin for the year ended June 29 was 36.27%, whereas its operating margin stood at 16.50% for the same period. Based on annual data, it had gross profit of $2.23 billion and revenue of $3.62 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AKAM’s return on assets (ROA) during the last 12 months has been 6.20%. There was a 8.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 12.00%.
Earnings Surprise
According to Akamai Technologies Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $935.72 million, while revenues rose by 3.46% to $915.7 million. It was predicted that Akamai Technologies Inc.’s quarterly earnings would be $1.49, but it ended up being $1.41, beating the consensus by 5.70%. EBITDA was $290.01 million for the quarter. At the end of Akamai Technologies Inc.’s most recent quarter ended June 29, its liabilities totaled 4.06 billion, while its total debt was $3.28 billion. Equity owned by shareholders amounts to $151.71 million.
Technical Picture
Here’s a quick look at Akamai Technologies Inc.’s (AKAM) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 68.74%, suggesting the stock is Neutral, with a 10.46% historical volatility rate.
The stochastic %K and %D were 76.53% and 71.85% respectively, while the average true range (ATR) was 1.55. Based on the 14-day stochastic reading of 99.67%, the RSI (14) reading is 67.51%. On the 9-day MACD Oscillator, the stock is at 0.62, and the 14-day reading is at 0.72.
Analyst Ratings
In its analyst report released on September 07, 2023, BofA Securities began covering Akamai Technologies Inc. (NASDAQ: AKAM). The stock was rated as a Buy by the brokerage firm. Analysts have assigned Akamai Technologies Inc. (AKAM) an Overweight rating. AKAM is a stock that is recommended for selling by 2 brokerage firms, while 10 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 8 others recommend it as a buy.
What is AKAM’s price target for the next 12 months?
The current consensus forecast for the stock is between $74.00 and $145.00, with a median target price of $112.00. In analyzing these forecasts, the average price target given by analysts for Akamai Technologies Inc. (AKAM) is $108.87.
