Akamai Technologies, Inc. (NASDAQ:AKAM) reached $11.38B by 13-February-19 in the wake of 1.5% advance. The shares gained some momentum after bears carried it down to $68.33. The final price for the day of 70.37 was still down from $71.2. The stock remained range bound between $68.33 and $71.2. Trading activity significantly improved as the volume at ready counter increased to 4,037,071 shares versus 1,469,925 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,527,457 shares. The stock is now 23.07% above against its bear-market low of $57.18 on January 03, 2019. It has retreated -18.06% since it’s 52-week high of $83.08 reached in June. Now the market price is up 8.38% on the year and up 15.21% YTD.
AKAM’s 50 day simple moving average (SMA 50) price is $64.66 and its 200-day simple moving average (SMA 200) price is $71.18. The company’s stock currently has a total float of 157.97M shares. Its weekly volatility is hovering around 2.39% and felt 1.86% volatility in price over a month. On the upside, the share price will test short term resistance at around $71.6. On a downside, the stock is likely to find some support, which begins at $68.73. The failure to get near-term support could push it to $67.1.
Separately, it has been reported that multiple insider activity took place at Akamai Technologies, Inc. (AKAM). SVP & General Counsel Ahola Aaron sold 1,122 shares for $4,035 in transaction occurred on 2018/12/06. After making this transaction, the SVP & General Counsel owns a direct stake of 76,083 shares, worth $283,943, as per the last closing price. On 2018/11/09 Sagan Paul, Director at AKAM, dumped 55,500 shares at an average price of $70.46 per share. The selling total is valued at $31,835,881.
Chief Strategy Officer, Wheaton William had divested 3,922 shares for $22,898 through a trade on 2018/11/07. Following this activity, the insider holds 281,325 shares worth $1,611,332 as of recent close. Wall Street’s most bullish Akamai Technologies, Inc. (NASDAQ:AKAM) analysts are predicting the share price to blow past $105 per share during the next 12 months. The current median share price forecast by them is $79, suggesting that the stock could increase 12.26% in that time frame. The average price target of $80.95 calls for a nearly 15.03% increase in the stock price.
It had seen a change in price target from analysts at RBC Capital Mkts, who reiterated the stock at Sector Perform on February 13 but moved PT from $77 to $76. Analysts at Piper Jaffray, maintained the company shares at Overweight on February 13 but switched target price from $84 to $85. Brokerage firm KeyBanc Capital Markets, looks cautious as they stick to prior recommendation of Overweight, in a call on February 13. However, they did change the target price from $73 to $76.
When looking at valuations, Akamai Technologies, Inc. (AKAM) has a pricey P/E of 47.97x as compared to industry average of 20.65x. Moreover, it trades for 17.51 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 3.7x price/book and 4.27x price/sales. Compared to others, Akamai Technologies, Inc. is in a different league with regards to profitability, having net margins of 8.4%. To put some perspective around this, the industry’s average net margin is 11.09%. AKAM’s ROE is 6.7%, which is also considerably worse than the industry’s ROE of 12.75%. It’s also very liquid in the near term, with a current ratio of 2. The stock has a debt/capital of 0.49.
AKAM last reported earnings on February 12, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $1.07 per share, -85.36% change on the same period last year. That was better than consensus for $1. Revenue for the recent quarter stood at $713.36 million, up 8% on last year and above the $703.74 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $695.9 million to $727 million, which should be compared with $713.5 million generated last year. EPS is seen in a range of $0.89 to $1.02, against the $0.8 reported a year ago.