Akamai Technologies Inc (AKAM) Stock: A SWOT Analysis

The price-to-earnings ratio for Akamai Technologies Inc (NASDAQ: AKAM) is above average at 30.39x, Company’s 36-month beta value is 0.70.Analysts have differing opinions on the stock, with 7 analysts rating it as a “buy,” 4 as “overweight,” 13 as “hold,” and 2 as “sell.”

The public float for AKAM is 148.70M, and currently, short sellers hold a 5.01% ratio of that floaft. The average trading volume of AKAM on April 04, 2024 was 1.75M shares.

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AKAM) stock’s latest price update

Akamai Technologies Inc (NASDAQ: AKAM)’s stock price has gone decline by -0.28 in comparison to its previous close of 107.38, however, the company has experienced a -0.87% decrease in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-01 that Akamai Technologies (AKAM) closed at $109.33 in the latest trading session, marking a +0.52% move from the prior day.

AKAM’s Market Performance

Akamai Technologies Inc (AKAM) has seen a -0.87% fall in stock performance for the week, with a -3.32% decline in the past month and a -8.38% plunge in the past quarter. The volatility ratio for the week is 1.33%, and the volatility levels for the past 30 days are at 1.49% for AKAM. The simple moving average for the past 20 days is -1.94% for AKAM’s stock, with a -0.45% simple moving average for the past 200 days.

Analysts’ Opinion of AKAM

Many brokerage firms have already submitted their reports for AKAM stocks, with Robert W. Baird repeating the rating for AKAM by listing it as a “Outperform.” The predicted price for AKAM in the upcoming period, according to Robert W. Baird is $135 based on the research report published on March 07, 2024 of the current year 2024.

HSBC Securities, on the other hand, stated in their research note that they expect to see AKAM reach a price target of $96, previously predicting the price at $109. The rating they have provided for AKAM stocks is “Reduce” according to the report published on February 15th, 2024.

Susquehanna gave a rating of “Positive” to AKAM, setting the target price at $150 in the report published on December 15th of the previous year.

AKAM Trading at -6.49% from the 50-Day Moving Average

After a stumble in the market that brought AKAM to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -17.10% of loss for the given period.

Volatility was left at 1.49%, however, over the last 30 days, the volatility rate increased by 1.33%, as shares sank -2.10% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -12.15% lower at present.

During the last 5 trading sessions, AKAM fell by -0.87%, which changed the moving average for the period of 200-days by +16.30% in comparison to the 20-day moving average, which settled at $109.08. In addition, Akamai Technologies Inc saw -9.52% in overturn over a single year, with a tendency to cut further losses.

Insider Trading

Reports are indicating that there were more than several insider trading activities at AKAM starting from Karon Adam, who sale 14,349 shares at the price of $109.78 back on Mar 22 ’24. After this action, Karon Adam now owns 6,697 shares of Akamai Technologies Inc, valued at $1,575,233 using the latest closing price.

Karon Adam, the COO & GM Edge Technology Group of Akamai Technologies Inc, sale 8,394 shares at $108.26 during a trade that took place back on Mar 15 ’24, which means that Karon Adam is holding 21,046 shares at $908,734 based on the most recent closing price.

Stock Fundamentals for AKAM

Current profitability levels for the company are sitting at:

  • 0.18 for the present operating margin
  • 0.59 for the gross margin

The net margin for Akamai Technologies Inc stands at 0.14. The total capital return value is set at 0.08. Equity return is now at value 12.23, with 6.02 for asset returns.

Based on Akamai Technologies Inc (AKAM), the company’s capital structure generated 0.45 points at debt to capital in total, while cash flow to debt ratio is standing at 0.36. The debt to equity ratio resting at 0.82. The interest coverage ratio of the stock is 41.71.

Currently, EBITDA for the company is 1.27 billion with net debt to EBITDA at 3.15. When we switch over and look at the enterprise to sales, we see a ratio of 5.32. The receivables turnover for the company is 5.26for trailing twelve months and the total asset turnover is 0.39. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.11.

Conclusion

In a nutshell, Akamai Technologies Inc (AKAM) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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