Take A Look At This Akamai Technologies Inc. (NASDAQ: AKAM) Analysis Before You Invest

Akamai Technologies Inc. (NASDAQ:AKAM) traded at $93.55 at close of the session on Wednesday, August 10, made a downward move of -1.61% on its previous day’s price.

Looking at the stock we see that its previous close was $95.08 and the beta (5Y monthly) reads 0.65 with the day’s price range being $94.72 – $96.38. The company has a trailing 12-month PE ratio of 25.57. In terms of its 52-week price range, AKAM has a high of $123.25 and a low of $85.90. The company’s stock has gained about 4.97% over that past 30 days.

Akamai Technologies Inc. has a market cap of $15.23 billion and is expected to release its quarterly earnings report on May 02, 2022 – May 06, 2022. Estimates by analysts give the company expected earnings per share (EPS) of $1.31, with the EPS growth for the year raised at $5.38 for 2022 and $6.04 for next year. These figures represent -6.30% and 12.30% growth in EPS for the two years respectively.

Analysts tracking the company’s growth have also given it a consensus growth in revenue estimated at $898.14 million, with a low of $892.1 million and a high of $906 million. According to analyst consensus estimates figures, the company’s yearly revenue forecast for 2022 is expected to hit $3.65 billion, or 5.40% up from figures reported last year.

There have been no upward and no downward revisions for the stock’s EPS in last 7 days, something that reflects the nature of company’s price movement in short term. On the other hand, looking at the outlook for the AKAM stock, short term indicators assign the stock an average of 100% Sell, while medium term indicators assign it an average of 100% Sell. Long term indicators on average place the stock in the category of 100% Sell.

Based on estimates by 19 analysts, where scores have ranged from 1.00 for a strong buy to 5.00 for a strong sell, 9 have rated the Akamai Technologies Inc. (AKAM) stock as a Hold, while 8 rate it as a Buy. 1 analyst(s) rate it as overweight while 1 of them rated it as underweight, whereas 0 suggest the stock as a Sell. The stock has an overall rating of Overweight and investors could take advantage and scoop up stock of the company.

Looking further, we note that the PEG ratio for the AKAM stock currently stands at 2.40, and the current price level is 0.68% off its SMA20 and -0.39% from its 50-day simple moving average. The RSI (14) is pointing at 48.41 while the volatility over the past week is 1.71% and jumps to 2.13% over the past one month. The beta value is 0.64, while the average true range (ATR) is currently pointing at 1.95. The average price target for the stock over the next 12 months is $111.86, with the estimates having a low of $90.00 and a high of $164.00. These price ends are 3.79% and -75.31% off the current price level respectively, although investors could be excited at the prospect of a -17.58% if the AKAM share price touches on the median price of $110.00.

Let’s briefly compare Akamai Technologies Inc. (AKAM) stock to its peers. We find that current price change of -1.61% and -17.39% over the past 12 months for AKAM competes that of Synopsys Inc. (SNPS), which has seen its stock price rise 0.95% in the last trading session and was 27.87% over the last one year. Another of its peers Cognizant Technology Solutions Corporation (CTSH) has gained 1.84% previous session, and was -6.09% down over the past year, while Arista Networks Inc. (ANET) was also up 3.65% in the last session, while its price remained in the green at 28.86% over the same period. Akamai Technologies Inc. has a P/E ratio of 25.57 compared to Synopsys Inc.’s 58.00 and Cognizant Technology Solutions Corporation’s 15.81. In contrast to these companies, both the S&P 500 Index and the Dow Jones Industrial were at 1.96% and 1.68%, respectively, at close of the trading.

Coming back to Akamai Technologies Inc. (NASDAQ:AKAM), we note that the average 3-month trading volume was 1.68 million, while that of the preceding 10-day period stands at 1.14 million. Current shares outstanding are 160.49 million.

The insiders hold 0.40% of the company’s shares while institutions hold 97.50%. The data shows that short shares as of Jul 14, 2022, stood at 11.67 million at a short ratio of 8.12. This represents a 7.28% short interest in shares outstanding on Jul 14, 2022. Shares short fall in July from the previous month at 12.17 million. Investors should be excited about this stock as its upside potential is great, with current price pushing the stock -18.76% down in year-to-date price movement.

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