As of Friday close, Akamai Technologies Inc.’s (NASDAQ:AKAM) stock was down -$0.38, moving down -0.35 percent to $107.55. The average number of shares traded per day over the past five days has been 2,772,560 shares. 3 times new highs have been achieved over the past 5 days, with a $3.05 gain in that time frame. In the last twenty days, the average volume was 2,010,870, while in the previous 50 days, it was 1,781,126.
Since last month, AKAM stock rose 4.99%. Shares of the company fell to $101.11 on 08/23/23, the lowest level in the past month. A 52-week high of $109.05 was reached on 09/20/23 after having rallying from a 52-week low of $70.65. Since the beginning of this year, AKAM’s stock price has risen by 27.58% or $23.25, and marked a new high 20 times. However, the stock has declined by -1.38% since its 52-week high.
AKAM stock investors should be aware that Akamai Technologies Inc. (AKAM) stock had its last reported insider trading activity 5 days ago on Sep 18. McGowan Edward J, the Chief Financial Officer of the company, disposed of 2,456 shares for $103.92 on Sep 18. It resulted in a $255,228 divestment by the insider. McGowan Edward J sold 8,640 shares at an average price of $105.45 on Sep 15. The insider now owns 18,168 shares following the transaction. On Sep 15, EVP – Global Sales Joseph Paul C sold 4,000 shares at $105.67 apiece. The transaction was valued at $422,680.
Valuation Metrics
Right now, Akamai Technologies Inc. (AKAM) has a P/E ratio of about 32.95. The stock’s beta is 0.75. Besides these, the trailing price-to-sales (P/S) ratio of 4.50, the price-to-book (PB) ratio of 3.81, and the price-to-cash flow ratio of 23.43 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 13.94%, the RSI 9-day stood at 66.82% on 22 September.
With respect to its five-day moving average, the current Akamai Technologies Inc. price is up by +2.92% percent or $3.05. At present, AKAM shares trade +5.80% above its 20-day simple moving average and +33.54% percent above its 100-day simple moving average. However, the stock is currently trading approximately +15.61% above its SMA50 and +17.41% above its SMA200.
Stochastic coefficient K was 80.62% and Stochastic coefficient D was 86.75%, while ATR was 1.65. Given the Stochastic reading of 72.58% for the 14-day period, the RSI (14) reading has been calculated as 66.79%. As of today, the MACD Oscillator reading stands at 1.88, while the 14-day reading stands at 2.50.
Analyst Ratings
BofA Securities launched its rating on Akamai Technologies Inc. (NASDAQ: AKAM) to a Buy in a note to investors on September 07, 2023. Akamai Technologies Inc. (AKAM) has been rated Overweight by analysts. According to 2 brokerage firms, AKAM is a sell, and 10 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Akamai Technologies Inc. stock as buy, with 8 recommending it as overweight.
With a median target price of $112.00, the current consensus forecast for the stock is $74.00 – $145.00. Based on these forecasts, analysts predict Akamai Technologies Inc. (AKAM) will achieve an average price target of $108.87.
