Oppenheimer has recently raised Akamai Technologies, Inc. (AKAM) stock to Outperform rating, as announced on Today, according to Finviz. Earlier, on November 11, 2024, HSBC Securities had raised the stock from a Hold to Buy, setting a price target of $121. Craig Hallum also raised Buy rating with a price target of $125. Additionally, Guggenheim raised Buy rating on July 29, 2024, with a target price of $128. HSBC Securities analysts, in their report published on July 24, 2024, also raised Hold rating for Akamai Technologies, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Akamai Technologies, Inc. (AKAM) Stock Trading Recap
On Monday, Akamai Technologies, Inc. (AKAM) stock saw a modest uptick, ending the day at $97.93 which represents a slight increase of $3.91 or 4.16% from the prior close of $94.02. The stock opened at $95.5 and touched a low of $95.35 during the day, reaching a high of $98.7. The volume of shares traded was 3.15 million exceeding the average volume of 1.71 million.
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AKAM Stock Performance and Moving Averages
In recent trading, Akamai Technologies, Inc. (AKAM) stock price has shown some volatility, fluctuating 5.41% over the last five trades and -3.12% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 7.73%, and it has plunged by -2.03% in the previous three months. Currently, AKAM is trading at 5.08%, -0.78%, and -1.19% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AKAM, a Technology sector stock, is trading -24.19% below its 52-week high but remains 15.62% above its 52-week low. The Average True Range (ATR) (14 days) of 2.51 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Akamai Technologies, Inc.’s Profitability and Valuation Ratios
Akamai Technologies, Inc.’s profitability metrics reveal financial health. The company currently boasts an operating margin of 16.71% and a profit margin of 13.27%, with a gross margin of 7.73%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Akamai Technologies, Inc.’s market capitalization stands at $14.74 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 29.01, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 14.86. Additionally, the Price-to-Sales Ratio is 3.72, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.08, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.87% of Akamai Technologies, Inc. (AKAM)’s shares, while financial institutions hold 96.82%.
Notable insider trades include Blumofe Robert, Chief Technology Officer at Akamai Technologies, Inc. (AKAM), who sold 2500 shares on Nov 15 ’24, at $88.61 each, totaling $0.22 million. On Nov 15 ’24, Joseph Paul C, EVP – Global Sales, sold 4000 shares for $88.63 each, amounting to $0.35 million. Additionally, on Sep 13 ’24, Joseph Paul C sold 4000 shares at $97.3 each, generating $0.39 million.
