Akamai stock: buy or sell?
August 23rd, 2019
Akamai Technologies, Inc. provides cloud services for delivering, optimizing, and securing content and business applications over the Internet in the United States and internationally.
Should I buy Akamai stock?Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
None of our preferred buy setups matches with Akamai Technologies stock situation right now, hence this is not a suitable entry point.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Akamai stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we collected 15 ratings published for AKAM stock in the last month.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-31||Credit Suisse Group||Neutral||Sell|
|2019-5-1||Piper Jaffray Companies||Top Pick||Overweight|
|2019-2-13||Royal Bank of Canada||Sector Perform||Sector Perform|
|2019-2-13||Piper Jaffray Companies||Overweight||Overweight|
Akamai stock analysis
Akamai Technologies shares slipped -1.95% to $86.99 today.
Akamai slipped a rough -1.95% and closed at $86.99. On May, SMA100d and SMA200d crossed up triggering a rise of 13.53%. On June AKAM price bounced up over the SMA of 50 days demonstrating to be a significant support for this stock.
Akamai Technologies shares remained steady 0.39% this week, ending at $86.99.
Akamai stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since SMA20d and SMA40w crossed up early May, AKAM price climbed $6.96 per share (8.70%). Stocks under the 200 days moving average line are usually not recommended for average traders.
Akamai stock price history
Akamai IPO was on October 29th, 1999 at $110.00 per share1. Since then, AKAM stock declined a -20.90%, with a yearly average of -1.10%.
1: Adjusted price after possible price splits or reverse-splits.
Akamai stock historical price chart
AKAM stock reached 52-week highs on July 31st at $90.76, and all-time highs 2000-01-03 with a price of 345.5.
Akamai stock price target is $83.90How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' AKAM stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 13 price targets for AKAM stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-31||Morgan Stanley||Raises Target||$94.00||$96.00||2.1%|
|2019-7-31||Credit Suisse Group||Reiterates||$75.00||$81.00||8%|
|2019-5-1||Piper Jaffray Companies||Reiterates||$85.00||$96.00||12.9%|
|2019-2-13||Royal Bank of Canada||Reiterates||$77.00||$76.00||-1.3%|
|2019-2-13||Piper Jaffray Companies||Reiterates||$84.00||$85.00||1.2%|
Financials and fundamental analysis
Earnings date and Earnings per ShareAkamai Technologies reported beatiful results for 2018-Q4 on February. Akamai Technologies rose Earnings per Share (EPS) by 10.40%, beating analysts of $0.77. Akamai Technologies posted $0.85.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Akamai annual sales rose a great 9.06% to $2,714.47 million dollars from $2,489.03 marked in 2017. Instead, its earnings margin (compared to sales) raised to 10.99%, that is $298.37 million.
|2013||$1,580 M||-||$293 M18.6%||-|
|2014||$1,964 M||24.30%||$334 M17.0%||13.79%|
|2015||$2,197 M||11.89%||$321 M14.6%||-3.76%|
|2016||$2,340 M||6.49%||$316 M13.5%||-1.64%|
|2017||$2,489 M||6.37%||$223 M8.9%||-29.53%|
|2018||$2,714 M||9.06%||$298 M11.0%||33.94%|
Quarterly financial resultsAkamai posted $713.36 million in revenues for 2018-Q4, a 6.53% improvement compared to previous quarter. Reported quarter earnings marked $94.02 M with a profit margin of 13.18%. Profit margin slightly fell a -2.89% compared to previous quarter when profit margin was 16.07%. When comparing revenues to same quarter last year, Akamai Technologies sales marked a pretty good increase and soared a 6.09%. Looking back to recent quarterly results, Akamai Technologies posted 2 negative quarters in a row.
|2017-Q2||$609 M||-||$58 M9.5%||-|
|2017-Q3||$621 M||2.05%||$61 M9.7%||4.75%|
|2017-Q4||$672 M||8.21%||$23 M3.4%||-61.87%|
|2018-Q1||$669 M||-0.55%||$54 M8.0%||132.78%|
|2018-Q2||$663 M||-0.89%||$43 M6.5%||-19.83%|
|2018-Q3||$670 M||1.04%||$108 M16.1%||149.84%|
|2018-Q4||$713 M||6.53%||$94 M13.2%||-12.61%|
|2019-Q1||$707 M||-0.96%||$107 M15.2%||13.95%|
Akamai ownershipWhen you are planning to buy shares of a company, it's worth to have a look its ownership structure.
Akamai Technologies shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 3.12% of all shares.
Bearish positions for AKAM stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Akamai Technologies:
|Market cap||$14.3 B||$44.6 B||$7.7 B||$119.1 B||$63.7 M|
|Total shares||163.9 M||80.4 M||59.7 M||886.6 M||26.8 M|
|Float shares||158.6 M||84.3 M||59.9 M||885.1 M||21.4 M|
|- Institutional holdings (%)||91.0%||96.1%||105.4%||57.5%||85.4%|
|- Insider holdings (%)||3.1%||0.5%||0.5%||0.1%||7.3%|
|Shares in short selling||0.0%||0.0%||0.0%||0.0%||0.0%|
|Friday, August 23rd, 2019|
|Day range||$86.68 - $89.96|
|Average true range||$2.54|
|50d mov avg||$83.49|
|100d mov avg||$80.35|
|200d mov avg||$73.94|
Akamai performanceStocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Akamai against Equinix, F5 Networks, International Business Machines, Internap, Limelight Networks, Nuance Communications, QUALCOMM, AT&T and VeriSign in the following table:
Akamai competitorsOne check before trading any stock is to review a list of its competitors, in this case for Akamai. We picked 9 companies as Akamai competitors as they are in the same industry or have similar market objectives.
- Equinix (EQIX)
- F5 Networks (FFIV)
- International Business Machines (IBM)
- Internap (INAP)
- Limelight Networks (LLNW)
- Nuance Communications (NUAN)
- QUALCOMM (QCOM)
- AT&T (T)
- VeriSign (VRSN)
Latest Akamai stock news
- Seeking AlphaAkamai: Benefiting From Cloud Security Demand And Improving Operating MarginsJune 3, 2019
- Seeking AlphaAkamai: Growth Potential, But Its Earnings Have Been In A SlumpFebruary 22, 2019
- InvestorPlaceAkamai Stock Is a Wild Horse – Here’s How to Tame ItFebruary 13, 2019
- InvestorPlaceAkamai Stock: Earnings and Revenues Beat Estimates in Q4February 13, 2019
- InvestorPlaceAkamai Technologies Earnings: AKAM Stock Dips as CFO Retires, EPS BeatFebruary 12, 2019