Akamai Technologies (NASDAQ:AKAM) Hits New 12-Month Low on Disappointing Earnings

Shares of Akamai Technologies, Inc. (NASDAQ:AKAM) reached a new 52-week low during mid-day trading on Friday following a dissappointing earnings announcement. The company traded as low as $82.67 and last traded at $82.79, with a volume of 4733173 shares changing hands. The stock had previously closed at $98.03.

The technology infrastructure company reported $1.19 EPS for the quarter, missing the consensus estimate of $1.52 by ($0.33). The company had revenue of $1.02 billion during the quarter, compared to the consensus estimate of $1.02 billion. Akamai Technologies had a return on equity of 14.63% and a net margin of 13.27%.

Analyst Upgrades and Downgrades

AKAM has been the topic of several recent analyst reports. Royal Bank of Canada lowered their target price on shares of Akamai Technologies from $100.00 to $90.00 and set a “sector perform” rating on the stock in a research note on Friday. Oppenheimer raised shares of Akamai Technologies from a “market perform” rating to an “outperform” rating and set a $120.00 target price on the stock in a report on Monday, December 2nd. Bank of America lowered shares of Akamai Technologies from a “buy” rating to a “neutral” rating and reduced their target price for the company from $125.00 to $100.00 in a report on Friday. Citigroup cut their price target on shares of Akamai Technologies from $104.00 to $102.00 and set a “neutral” rating on the stock in a report on Friday, January 17th. Finally, Craig Hallum lowered shares of Akamai Technologies from a “buy” rating to a “hold” rating and set a $90.00 price target on the stock. in a report on Friday. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $107.90.

Insider Transactions at Akamai Technologies

In other Akamai Technologies news, CFO Edward J. Mcgowan sold 10,782 shares of Akamai Technologies stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $98.71, for a total transaction of $1,064,291.22. Following the transaction, the chief financial officer now owns 12,716 shares of the company’s stock, valued at $1,255,196.36. The trade was a 45.88 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Paul C. Joseph sold 4,000 shares of Akamai Technologies stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $91.57, for a total transaction of $366,280.00. Following the transaction, the executive vice president now directly owns 23,104 shares in the company, valued at $2,115,633.28. This represents a 14.76 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 15,782 shares of company stock worth $1,523,951 over the last three months. 1.80% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Akamai Technologies

Hedge funds have recently modified their holdings of the stock. Farther Finance Advisors LLC lifted its holdings in shares of Akamai Technologies by 85.7% in the third quarter. Farther Finance Advisors LLC now owns 247 shares of the technology infrastructure company’s stock worth $25,000 after buying an additional 114 shares in the last quarter. Itau Unibanco Holding S.A. lifted its holdings in shares of Akamai Technologies by 99.6% in the fourth quarter. Itau Unibanco Holding S.A. now owns 469 shares of the technology infrastructure company’s stock worth $45,000 after buying an additional 234 shares in the last quarter. SBI Securities Co. Ltd. purchased a new stake in Akamai Technologies during the fourth quarter valued at $49,000. Bruce G. Allen Investments LLC raised its stake in Akamai Technologies by 38.8% during the fourth quarter. Bruce G. Allen Investments LLC now owns 554 shares of the technology infrastructure company’s stock valued at $53,000 after purchasing an additional 155 shares in the last quarter. Finally, Wolverine Asset Management LLC purchased a new stake in Akamai Technologies during the fourth quarter valued at $57,000. Hedge funds and other institutional investors own 94.28% of the company’s stock.

Akamai Technologies Trading Down 21.7 %

The company has a market cap of $11.53 billion, a PE ratio of 22.70, a P/E/G ratio of 3.58 and a beta of 0.65. The stock’s 50 day moving average is $96.15 and its 200-day moving average is $97.86. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.50.

About Akamai Technologies

Akamai Technologies, Inc provides cloud computing, security, and content delivery services in the United States and internationally. The company offers cloud solutions to keep infrastructure, websites, applications, application programming interfaces, and users safe from various cyberattacks and online threats while enhancing performance.