Akamai Technologies, Inc.

NASDAQ Global Select
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Slightly Bullish +25

Akamai Technologies, Inc. (NASDAQ:AKAM) Given Average Rating of "Hold ...

AI-generated analysis

📊 Akamai Technologies holds an average broker rating of 'Hold' with a consensus one-year price target of $145.29 based on twenty-two covering analysts.

📈 The company reported Q4 EPS of $1.61 and revenue of $1.07 billion, both meeting analyst consensus estimates exactly.

📉 Revenue grew 5.8% year-over-year to reach $1.07 billion, while net margins remained stable at 10.20%.

🎯 Management guidance for FY 2026 EPS ranges from $6.40 to $7.15, exceeding the analyst consensus of $3.93 for the current year.

📉 EVP Kim Salem-Jackson sold 2,300 shares ($311k) and CTO Robert Blumofe sold 243 shares ($31k) in June under pre-arranged trading plans.

🏦 Major banks show divergent views with Guggenheim raising its target to $181 ('buy') while Zacks Research downgraded to 'strong sell'.

🛡️ Akamai provides content delivery network (CDN) and cloud security solutions, protecting clients against DDoS attacks and bot-driven fraud.

📉 Institutional ownership stands at 94.28%, with several small hedge funds increasing stakes in the fourth quarter.

Bullish Signals
  • Akamai reported Q4 revenue of $1.07 billion, matching analyst consensus exactly while growing 5.8% year-over-year.
  • The company achieved a net margin of 10.20% and a return on equity of 12.96%, demonstrating solid profitability.
  • Bank of America upgraded its rating to 'buy' with a price target increase to $175, citing strong fundamentals.
  • Guggenheim raised its price objective from $133 to $181 and maintained a 'buy' rating on the stock.
  • Management provided FY 2026 EPS guidance of $6.40-$7.15, which is significantly higher than the analyst consensus of $3.93.
Risk Factors
  • Zacks Research downgraded Akamai from 'hold' to 'strong sell', indicating bearish sentiment among some analysts.
  • EVP Kim Salem-Jackson sold 2,300 shares ($311k) and CTO Robert Blumofe sold 243 shares ($31k) in June, reducing their personal holdings.
Full Analysis
Shares of Akamai Technologies (NASDAQ:AKAM) currently hold an average broker rating of 'Hold' based on recommendations from twenty-two analysts, with twelve issuing buy ratings, seven holding, and three selling. The consensus one-year price target stands at approximately $145.29. Recent analyst activity shows mixed signals, including Guggenheim raising its objective to $181 and Bank of America upgrading to a 'buy' with a $175 target, while Zacks Research downgraded the stock to a 'strong sell' in May. Akamai reported fourth-quarter earnings on May 7th that met consensus estimates exactly, posting $1.61 in EPS and $1.07 billion in revenue, representing a 5.8% year-over-year increase. The company achieved a net margin of 10.20% and a return on equity of 12.96%. Management has provided guidance for fiscal 2026 EPS between $6.40 and $7.15, while analysts collectively forecast full-year earnings of $3.93 per share. Insider trading activity saw EVP Kim Salem-Jackson sell 2,300 shares under a pre-arranged Rule 10b5-1 plan in June, followed by CTO Robert Blumofe selling 243 shares shortly after. Meanwhile, several small-cap hedge funds and wealth advisors have increased their positions significantly during the fourth quarter, though these holdings remain relatively small in absolute terms compared to the company's total market capitalization.