CAMBRIDGE, MA— Akamai Technologies Inc .'s (NASDAQ:AKAM) Executive Vice President and General Counsel, Aaron Ahola, recently sold a portion of his holdings in the company. According to a recent SEC filing, Ahola sold 3,500 shares of Akamai common stock on December 13, 2024. The shares were sold at a weighted-average price of $99.2625, resulting in a total transaction value of approximately $347,418. The sale comes as InvestingPro data shows the company trading near its Fair Value, with a "GOOD" overall financial health score.
Following the sale, Ahola retains 12,678 shares of Akamai stock. The shares sold were held by the Aaron Ahola Revocable Trust, for which Ahola serves as trustee. The sales were executed in multiple transactions, with prices ranging from $99.22 to $99.305 per share. While this insider sale occurred, InvestingPro analysis reveals management has been actively buying back shares, with the stock showing strong momentum over the past month.
This transaction is part of Ahola's ongoing management of his investment portfolio and reflects his personal investment strategy. Akamai Technologies, based in Cambridge, Massachusetts, is a leading provider of cloud services for delivering, optimizing, and securing content and business applications over the Internet. The company maintains a solid market position with a market capitalization of $14.9 billion and has demonstrated consistent profitability, achieving a gross profit margin of nearly 60% over the last twelve months.
In other recent news, Akamai Technologies has seen significant developments. Oppenheimer upgraded Akamai from Perform to Outperform, influenced by recent changes in the content delivery network (CDN) market dynamics and Akamai's acquisition of Edgio's customers. This consolidation is expected to create a more favorable market environment for Akamai, which has demonstrated solid performance with a 5.92% revenue growth over the last twelve months and a net income of $526 million.
Akamai has also expanded its offerings to include a robust cloud compute and edge compute platform, anticipated to benefit from growing AI demand. Piper Sandler maintains an Overweight rating on Akamai's shares, expecting the acquisition of Edgio to contribute roughly $10 million in the fourth quarter of 2024 and about $90 million in the fiscal year 2025.
Akamai recently reported its first billion-dollar quarter, with total revenue reaching $1.005 billion, a 4% increase year over year. The company's security revenue rose to $519 million, a 14% increase, while compute revenue grew by 28% to $167 million. Baird, the financial services firm, adjusted its stock price target for Akamai, maintaining an Outperform rating, highlighting Akamai's security and compute segments, which are expected to continue experiencing double-digit growth.
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