Akamai Technologies (NASDAQ:AKAM) Downgraded by Zacks Research to Strong Sell

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

Several other research analysts also recently commented on AKAM. Royal Bank Of Canada raised their target price on Akamai Technologies from $100.00 to $150.00 and gave the stock a “sector perform” rating in a research note on Friday, May 8th. Evercore began coverage on Akamai Technologies in a report on Tuesday, April 14th. They set an “outperform” rating and a $130.00 price objective for the company. Bank of America upgraded shares of Akamai Technologies from a “neutral” rating to a “buy” rating and upped their price objective for the stock from $130.00 to $175.00 in a research report on Wednesday, May 13th. Susquehanna raised their target price on shares of Akamai Technologies from $120.00 to $175.00 and gave the company a “positive” rating in a research note on Monday, May 11th. Finally, JPMorgan Chase & Co. raised their target price on shares of Akamai Technologies from $72.00 to $100.00 in a research note on Friday, May 8th. Twelve analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Akamai Technologies currently has an average rating of “Hold” and a consensus target price of $145.29.

Akamai Technologies Stock Up 1.6%

Shares of NASDAQ AKAM opened at $143.55 on Tuesday. Akamai Technologies has a 52 week low of $69.78 and a 52 week high of $165.45. The business has a 50-day simple moving average of $114.42 and a two-hundred day simple moving average of $99.64. 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 company has a market cap of $20.87 billion, a P/E ratio of 48.33, a P/E/G ratio of 4.50 and a beta of 0.45.

Akamai Technologies (NASDAQ:AKAM) last issued its earnings results on Thursday, May 7th. The technology infrastructure company reported $1.61 EPS for the quarter, hitting the consensus estimate of $1.61. Akamai Technologies had a return on equity of 12.96% and a net margin of 10.20%.The business had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.07 billion. During the same quarter last year, the company earned $1.70 EPS. The firm’s revenue was up 5.8% compared to the same quarter last year. 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. Research analysts anticipate that Akamai Technologies will post 3.93 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Akamai Technologies news, Director Madhu Ranganathan sold 3,131 shares of the company’s stock in a transaction that occurred 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 completion of the sale, the director owned 9,160 shares of the company’s stock, valued at $934,320. This represents a 25.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Laura Howell sold 11,273 shares of the company’s stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $100.14, for a total value of $1,128,878.22. Following the completion of the sale, the chief accounting officer directly owned 12,559 shares of the company’s stock, valued at approximately $1,257,658.26. This represents a 47.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 53,954 shares of company stock valued at $5,511,371 over the last 90 days. Company insiders own 2.30% of the company’s stock.

Institutional Trading of Akamai Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of AKAM. Norges Bank bought a new stake in Akamai Technologies in the fourth quarter valued at approximately $192,959,000. AQR Capital Management LLC increased its stake in shares of Akamai Technologies by 522.8% during the third quarter. AQR Capital Management LLC now owns 2,020,346 shares of the technology infrastructure company’s stock valued at $153,061,000 after buying an additional 1,695,937 shares during the period. Alyeska Investment Group L.P. increased its stake in shares of Akamai Technologies by 570.0% during the third quarter. Alyeska Investment Group L.P. now owns 1,634,040 shares of the technology infrastructure company’s stock valued at $123,795,000 after buying an additional 1,390,167 shares during the period. Rubric Capital Management LP purchased a new position in shares of Akamai Technologies during the fourth quarter valued at approximately $104,700,000. Finally, First Trust Advisors LP increased its stake in shares of Akamai Technologies by 16.5% during the fourth quarter. First Trust Advisors LP now owns 6,752,000 shares of the technology infrastructure company’s stock valued at $589,112,000 after buying an additional 957,345 shares during the period. Institutional investors own 94.28% of the company’s stock.

More 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

Akamai Technologies Company Profile

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.