In a recent transaction, EVP - Global Sales of Akamai Technologies Inc . (NASDAQ:AKAM), Joseph Paul C, sold 4,000 shares of the company's common stock, resulting in a total sale amount of $389,200. The shares were sold at a price of $97.30 each.
The transaction took place on September 13, 2024, and was disclosed in a Form 4 filing with the Securities and Exchange Commission. According to the filing, the shares sold by Mr. Joseph were held by the PJ Joseph Trust 2020, for which he serves as trustee. It was also noted that the sale was executed in accordance with a Rule 10b5-1 trading plan, which Mr. Joseph had adopted on May 19, 2024.
Following the sale, the EVP's directly owned shares in Akamai Technologies decreased, leaving him with a total of 30,703 shares in the company. These transactions are a routine part of financial disclosures for company insiders and provide transparency to investors regarding executive stock holdings and transactions.
Akamai Technologies, based in Cambridge, Massachusetts, specializes in internet content delivery services and cloud security solutions. The company's stock is publicly traded and closely watched by investors who follow insider trading activity for insights into executive confidence and company performance.
In other recent news, Akamai Technologies reported better than expected second-quarter results for 2024, leading to an increase in its overall guidance for revenue, EBITDA, and Non-GAAP EPS for the same year. The company's shift towards a healthier business mix, with Compute and Security surpassing Delivery's 33% contribution, was noted as a positive development by Citi, which raised its price target to $115. However, Akamai's Delivery segment continues to seek normalization amidst traffic declines and do-it-yourself pressures.
Analysts from firms such as DA Davidson, RBC Capital, TD Cowen, and Scotiabank have adjusted their outlook on Akamai, with DA Davidson raising its price target to $120 and TD Cowen setting its target at $131. RBC Capital increased its price target to $100 while Scotiabank upgraded its target to $115.
Akamai's successful acquisition of Noname Security, a prominent API security company, for approximately $450 million has been highlighted as a strategic move that enhances the company's capabilities in the API security domain. Despite maintaining an Overweight rating, KeyBanc reduced its price target due to lower-than-expected Delivery segment revenues and foreign exchange headwinds. These recent developments reflect shifts in Akamai's strategic direction and potential for growth in key business areas.
InvestingPro Insights
As investors analyze the recent insider sale by EVP - Global Sales of Akamai Technologies Inc. (NASDAQ:AKAM), it's important to consider the broader financial context of the company. Akamai Technologies has shown a solid revenue growth of 7.26% over the last twelve months as of Q2 2024, indicating a healthy expansion in their core business areas. Additionally, the company is trading at a price-to-earnings (P/E) ratio of 23.68, which adjusts slightly to 23.38 when looking at the last twelve months as of Q2 2024. This P/E ratio is particularly interesting when paired with the company's near-term earnings growth, as it suggests that the stock may be trading at a discount relative to its future earnings potential.
InvestingPro Tips highlight that Akamai Technologies has been actively returning value to shareholders through aggressive share buybacks, a move that often signals management's confidence in the company's future prospects. Moreover, with 19 analysts revising their earnings upwards for the upcoming period, there is a positive sentiment surrounding the company's financial outlook. For those interested in stability, Akamai's stock generally trades with low price volatility, which could appeal to risk-averse investors.
For a deeper dive into Akamai Technologies' financials and additional InvestingPro Tips, investors can explore https://www.investing.com/pro/AKAM, where they will find more than six additional tips to guide their investment decisions. The platform also provides insights into the company's fair value, with analysts setting a target of $115 and InvestingPro's fair value estimate at $109.68, suggesting potential room for stock price appreciation.
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