Akamai Technologies (AKAM) Shares Gap Up on Earnings Beat

Akamai Technologies, Inc. (NASDAQ:AKAM) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $54.13, but opened at $62.05. Akamai Technologies shares last traded at $72.55, with a volume of 10208004 shares.

The technology infrastructure company reported $0.94 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.83 by $0.11. Akamai Technologies had a return on equity of 10.63% and a net margin of 6.74%. The company had revenue of $669.63 million for the quarter, compared to analysts’ expectations of $664.17 million. During the same period in the previous year, the firm posted $0.62 earnings per share. The firm’s revenue for the quarter was up 7.2% on a year-over-year basis.

Several equities research analysts have weighed in on AKAM shares. B. Riley reduced their price objective on Akamai Technologies from $99.00 to $97.00 and set a “$79.75” rating on the stock in a research note on Monday, July 23rd. ValuEngine raised Akamai Technologies from a “hold” rating to a “buy” rating in a research note on Wednesday, July 25th. Piper Jaffray Companies reissued a “buy” rating on shares of Akamai Technologies in a research note on Monday, October 1st. DA Davidson raised Akamai Technologies from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $82.00 to $93.00 in a research note on Monday, September 10th. Finally, SunTrust Banks upgraded Akamai Technologies from a “hold” rating to a “buy” rating and boosted their target price for the company from $78.00 to $82.00 in a research report on Tuesday. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of “Buy” and an average target price of $80.29.



In other Akamai Technologies news, EVP Robert Blumofe sold 4,000 shares of the business’s stock in a transaction that occurred on Thursday, August 2nd. The stock was sold at an average price of $71.20, for a total transaction of $284,800.00. Following the completion of the transaction, the executive vice president now owns 19,951 shares in the company, valued at $1,420,511.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP Aaron Ahola sold 1,123 shares of the business’s stock in a transaction that occurred on Thursday, September 6th. The shares were sold at an average price of $73.63, for a total value of $82,686.49. Following the transaction, the senior vice president now owns 4,035 shares of the company’s stock, valued at approximately $297,097.05. The disclosure for this sale can be found here. Insiders have sold 44,215 shares of company stock valued at $3,306,814 in the last 90 days. Company insiders own 3.20% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Harel Insurance Investments & Financial Services Ltd. boosted its holdings in shares of Akamai Technologies by 291.6% in the third quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,762 shares of the technology infrastructure company’s stock valued at $128,000 after purchasing an additional 1,312 shares during the period. FNY Investment Advisers LLC purchased a new stake in shares of Akamai Technologies in the third quarter valued at approximately $512,000. Assenagon Asset Management S.A. boosted its holdings in shares of Akamai Technologies by 106.0% in the third quarter. Assenagon Asset Management S.A. now owns 340,537 shares of the technology infrastructure company’s stock valued at $24,910,000 after purchasing an additional 175,232 shares during the period. Oppenheimer & Co. Inc. boosted its holdings in shares of Akamai Technologies by 83.5% in the third quarter. Oppenheimer & Co. Inc. now owns 32,585 shares of the technology infrastructure company’s stock valued at $2,384,000 after purchasing an additional 14,827 shares during the period. Finally, Oppenheimer Asset Management Inc. boosted its holdings in shares of Akamai Technologies by 16.5% in the third quarter. Oppenheimer Asset Management Inc. now owns 11,019 shares of the technology infrastructure company’s stock valued at $806,000 after purchasing an additional 1,562 shares during the period. Hedge funds and other institutional investors own 85.82% of the company’s stock.

The company has a quick ratio of 2.19, a current ratio of 2.19 and a debt-to-equity ratio of 0.25. The firm has a market cap of $10.50 billion, a PE ratio of 38.18, a P/E/G ratio of 1.71 and a beta of 0.47.

About Akamai Technologies (NASDAQ:AKAM)

Akamai Technologies, Inc provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally. The company offers Web and mobile performance solutions, such as Ion, a situational performance solution; Dynamic Site Accelerator that helps in consistent Website performance; Image Manager that automatically optimizes online images; CloudTest to conduct load testing and other analysis of Websites in a pre-production environment; mPulse that provides real-time Website performance data to provide insight about end-user experiences on a Website; and Global Traffic Management, a fault-tolerant solution.

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