Akamai stock: buy or sell?

AKAM stock price: $86.99 -1.95% At close on August 23rd, 2019

Updated on:
August 23rd, 2019

2

Akamai Technologies shares slipped -1.95% to $86.99 today. On August 14th AKAM collapsed a dreadful -6.29%.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AKAM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

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.

Is AKAM a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-31Nomuran/aNeutral
2019-7-31Morgan Stanleyn/aOverweight
2019-7-31Credit Suisse GroupNeutralSell
2019-7-31Craig Hallumn/aBuy
2019-7-24GuggenheimBuyNeutral
2019-6-14DA Davidsonn/aBuy
2019-6-14DA Davidsonn/aBuy
2019-6-13Evercore ISIn/aHold
2019-5-1Piper Jaffray CompaniesTop PickOverweight
2019-5-1KeyCorpn/aOverweight
2019-4-4Tigress Financialn/aStrong-Buy
2019-3-25Deutsche BankHoldSell
2019-3-21Evercore ISIn/an/a
2019-2-13Royal Bank of CanadaSector PerformSector Perform
2019-2-13Piper Jaffray CompaniesOverweightOverweight

Akamai stock analysis

Daily outlook

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.

AKAM stock chart (daily)

Weekly outlook

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.

AKAM stock chart (weekly)

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 $83.90

How 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:
AKAM stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-31NomuraRaises Target$75.00$81.008%
2019-7-31Morgan StanleyRaises Target$94.00$96.002.1%
2019-7-31Credit Suisse GroupReiterates$75.00$81.008%
2019-7-31Craig HallumReiterates$92.00$97.005.4%
2019-6-14DA DavidsonReiteratesn/a$95.00-
2019-6-14DA DavidsonInitiatesn/a$95.00-
2019-6-13Evercore ISIReiteratesn/a$70.00-
2019-5-1Piper Jaffray CompaniesReiterates$85.00$96.0012.9%
2019-5-1KeyCorpReiterates$80.00$91.0013.8%
2019-3-25Deutsche BankDowngradesn/a$58.00-
2019-3-21Evercore ISIInitiatesn/a$70.00-
2019-2-13Royal Bank of CanadaReiterates$77.00$76.00-1.3%
2019-2-13Piper Jaffray CompaniesReiterates$84.00$85.001.2%
(in average)$82.80$83.901.0%
The price prediction for Akamai stock is $83.90, moving in a range between $97.00 and $58.00. In average, analysts' outlook on AKAM price forecast is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Akamai 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.
AKAM earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.36n/a
2017-Q32017-10-240.590.625.1%
2017-Q42018-02-060.630.699.5%
2018-Q12018-04-300.510.5813.7%
2018-Q22018-07-310.590.58-1.7%
2018-Q32018-10-290.610.6811.5%
2018-Q42019-02-120.770.8510.4%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 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.

AKAM annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,580 M-$293 M18.6%-
2014$1,964 M24.30%$334 M17.0%13.79%
2015$2,197 M11.89%$321 M14.6%-3.76%
2016$2,340 M6.49%$316 M13.5%-1.64%
2017$2,489 M6.37%$223 M8.9%-29.53%
2018$2,714 M9.06%$298 M11.0%33.94%

Quarterly financial results

Akamai 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.
AKAM quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$609 M-$58 M9.5%-
2017-Q3$621 M2.05%$61 M9.7%4.75%
2017-Q4$672 M8.21%$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 M1.04%$108 M16.1%149.84%
2018-Q4$713 M6.53%$94 M13.2%-12.61%
2019-Q1$707 M-0.96%$107 M15.2%13.95%

Akamai ownership

When 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:

AKAMEQIXFFIVIBMINAP
Market cap$14.3 B$44.6 B$7.7 B$119.1 B$63.7 M
Total shares163.9 M80.4 M59.7 M886.6 M26.8 M
Float shares158.6 M84.3 M59.9 M885.1 M21.4 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 selling0.0%0.0%0.0%0.0%0.0%

Akamai summary

Friday, August 23rd, 2019
Open$88.33
Close$86.99
Day range$86.68 - $89.96
Previous close$88.72
Session gain-1.95%
Average true range$2.54
50d mov avg$83.49
100d mov avg$80.35
200d mov avg$73.94
Daily pattern
Weekly pattern lt06a

Akamai performance

Stocks 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:
Stock3m6m12m
AKAMAkamai Technologi...11.68%24.52%18.51%
EQIXEquinix12.16%31.37%31.69%
FFIVF5 Networks-5.54%-24.83%-31.06%
IBMInternational Bus...2.74%-1.24%-3.53%
INAPInternap-18.49%-58.39%-82.73%
LLNWLimelight Network...-27.41%-21.55%-46.80%
NUANNuance Communicat...-1.65%4.72%4.40%
QCOMQUALCOMM17.59%48.28%19.65%
TAT&T11.32%17.19%15.35%
VRSNVeriSign5.38%14.77%31.47%

Akamai competitors

One 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.

Latest Akamai stock news