Akamai Technologies (NASDAQ:AKAM) Stock Rating Lowered by Zacks Research

Akamai Technologies (NASDAQ:AKAM) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Tuesday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Bank of America raised Akamai Technologies from a “neutral” rating to a “buy” rating and boosted their target price for the company from $130.00 to $175.00 in a report on Wednesday, May 13th. Scotiabank boosted their target price on Akamai Technologies from $120.00 to $180.00 and gave the company a “sector outperform” rating in a report on Friday, May 8th. Weiss Ratings reissued a “hold (c)” rating on shares of Akamai Technologies in a report on Friday, March 27th. JPMorgan Chase & Co. boosted their target price on Akamai Technologies from $72.00 to $100.00 in a report on Friday, May 8th. Finally, Oppenheimer boosted their target price on Akamai Technologies from $115.00 to $130.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. Twelve equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $145.29.

Akamai Technologies Trading Up 1.6%

AKAM opened at $143.55 on Tuesday. The firm has a market cap of $20.87 billion, a price-to-earnings ratio of 48.33, a price-to-earnings-growth ratio of 4.50 and a beta of 0.45. The company has a quick ratio of 2.06, a current ratio of 2.06 and a debt-to-equity ratio of 0.84. The business’s 50 day moving average is $114.42 and its two-hundred day moving average is $99.64. Akamai Technologies has a 52 week low of $69.78 and a 52 week high of $165.45.

Akamai Technologies (NASDAQ:AKAM) last released its earnings results on Thursday, May 7th. The technology infrastructure company reported $1.61 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $1.61. The business had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.07 billion. Akamai Technologies had a return on equity of 12.96% and a net margin of 10.20%.The company’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.70 earnings per share. Akamai Technologies has set its FY 2026 guidance at 6.400-7.150 EPS and its Q2 2026 guidance at 1.450-1.650 EPS. On average, research analysts predict that Akamai Technologies will post 3.93 EPS for the current year.

Insider Activity

In related news, Director Jon Miller sold 11,000 shares of the company’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $102.67, for a total transaction of $1,129,370.00. Following the transaction, the director owned 22,806 shares of the company’s stock, valued at $2,341,492.02. This represents a 32.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Madhu Ranganathan sold 3,131 shares of the company’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $102.00, for a total value of $319,362.00. Following the transaction, the director directly owned 9,160 shares in the company, valued at $934,320. This represents a 25.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 53,954 shares of company stock valued at $5,511,371 over the last three months. 2.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of AKAM. Brighton Jones LLC boosted its position in Akamai Technologies by 101.4% during the fourth quarter. Brighton Jones LLC now owns 4,016 shares of the technology infrastructure company’s stock worth $384,000 after purchasing an additional 2,022 shares in the last quarter. Jones Financial Companies Lllp boosted its position in Akamai Technologies by 35.2% during the first quarter. Jones Financial Companies Lllp now owns 1,087 shares of the technology infrastructure company’s stock worth $88,000 after purchasing an additional 283 shares in the last quarter. United Services Automobile Association purchased a new stake in Akamai Technologies during the first quarter worth $266,000. Empowered Funds LLC boosted its position in Akamai Technologies by 73.0% during the first quarter. Empowered Funds LLC now owns 7,134 shares of the technology infrastructure company’s stock worth $574,000 after purchasing an additional 3,010 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in Akamai Technologies by 152.8% during the second quarter. EverSource Wealth Advisors LLC now owns 1,163 shares of the technology infrastructure company’s stock worth $93,000 after purchasing an additional 703 shares in the last quarter. Institutional investors and hedge funds own 94.28% of the company’s stock.

Key Akamai Technologies News

Here are the key news stories impacting Akamai Technologies this week:

• Positive Sentiment: Akamai released research showing that DDoS and API attacks against financial services are becoming bigger, longer, and more complex, reinforcing demand for its cybersecurity products and highlighting the company’s relevance in a growing threat environment. Article: Financial Services at Risk: DDoS Attacks Are Bigger, Longer, and More Complex, Akamai Research Finds
• Positive Sentiment: The company launched “AI Brand Presence,” a new tool aimed at helping customers optimize content for AI search and agentic traffic, which could support future growth as more internet traffic shifts toward AI-driven discovery. Article: Akamai AI Brand Presence Optimizes Content and Raises Visibility in Agentic Search
• Neutral Sentiment: Scotiabank reiterated a positive view on Akamai, with a $180 price target and FY2027 EPS estimate of $4.13, suggesting analysts still see room for earnings growth. Article: FY2027 Earnings Estimate for AKAM Issued By Scotiabank
• Negative Sentiment: Akamai priced an upsized $3.0 billion convertible note offering, including $1.5 billion due 2030 and $1.5 billion due 2032, which raised investor concerns about dilution and added leverage even if the proceeds support strategic investments and AI infrastructure. Article: Akamai Announces Pricing of Upsized Offering of Convertible Senior Notes
• Negative Sentiment: Market commentary linked Akamai’s weakness to the convertible debt deal, with reports noting the stock dropped on the financing news, making this the most direct reason for recent pressure on the shares. Article: The $2.6 Billion Power Play: How Akamai Is Weaponizing Debt to Build the AI Edge

About Akamai Technologies

Akamai Technologies, Inc is a leading provider of content delivery network (CDN) services and cloud security solutions designed to optimize and safeguard digital experiences. Leveraging a globally distributed platform, the company accelerates web and mobile content delivery for enterprises, media companies, e-commerce platforms and government agencies. Its edge computing architecture brings processing power closer to end users, reducing latency and improving application performance across geographies.

The company’s core offerings include content acceleration, web and mobile performance optimization, media delivery, and a suite of cybersecurity solutions that protect against DDoS attacks, application-layer threats and bot-driven fraud.