Northeast Investment Management, a privately owned investment management firm, has recently filed its Form 13F with the Securities and Exchange Commission disclosing that it has cut its stake in shares of Akamai Technologies Inc., by 2.6% in the fourth quarter of 2022. As of its most recent filing with the SEC, the fund owned 122,372 shares of the technology infrastructure company’s stock after selling 3,213 shares during the period. Northeast Investment Management currently owns 0.08% of Akamai Technologies worth $10,316,000.
For those unfamiliar with Akamai Technologies Inc (NASDAQ:AKAM), it is a leading provider of cloud services for delivering, optimizing and securing content and business applications over the Internet. The company’s products include security, web performance management systems and network operator tools among other technologies.
On February 14th this year, Akamai Technologies last issued its earnings reports disclosing that it had recorded a quarterly earning per share of $1.37 up from analysts’ consensus estimates which stood at $1.26 representing an increase of $0.11 per share. While generating a revenue generation value of approximately $927.78 million for Q4 alone compared to an estimated revenue estimate figure from analysts at around $904.80 million.
Akamai Technologies made these figures even more impressive recording an increase in revenue receipts by 2.5% compared to what was recorded during the same quarter prior year while still maintaining a notable return on equity and net margin figure standing at 15.12% and 13.15%. During this same quarter year on year comparison period, their earnings per share figure stood at $1.26 EPS.
Analysts forecasting for financial returns say that they expect to see Akamai Technologies post earnings per share totaling up to about $4.26 for this current fiscal year.
Akamai Technology’s consistent and steady growth over the years has made the tech company become one of the leading options across various market domains for network and web security services as well as other related cloud products. Akamai’s infrastructure strategically located globally, hence it’s able to deliver high-quality solutions driven by expertise from a multinational workforce scattered globally. This combined with their extensive network spanning across more than 135 countries and having support for over 30,000 customers worldwide places Akamai Technologies Inc at an enviable position in the tech industry today.
This latest development by Northeast Investment Management to cut its stake in shares of Akamai Technologies is somewhat perplexing to some investors given that this development comes on the heels of heightened investor interest in the cloud infrastructure provider following its impressive financial results announced earlier in February. Nonetheless, investors and stakeholders closely monitoring developments on this will be keenly awaiting subsequent updates from both Northeast management and Akamai leadership with hopes that these companies are managing risks prudently given current operational realities.
Akamai Technologies Receives New Investments from Large Investors and Mixed Reviews from Analysts
Akamai Technologies, Inc., a cloud services provider for internet content and applications, has recently received new investments from several large investors. Fairfield Bush & CO. recently acquired a stake in the company valued at $107,000. Private Advisor Group LLC increased its position by 16%, now owning 4,491 shares worth $536,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its position by 6.6% and now holds 21,740 shares worth $2,596,000. Cibc World Market Inc. lifted its position by 2.3%, owning 10,741 shares worth $1,282,000. Finally, Cetera Investment Advisers raised their stakes by an impressive 48.7%, with holdings now standing at 2,789 shares worth $333,000. The majority of Akamai Technologies’ stock is owned by institutional investors and hedge funds accounting for approximately 90%.
One share of AKAM stock traded up to $78.92 on Friday following the trading volume of over one million shares compared to the average volume of almost two million. With a market capitalization of $12.33 billion and PE ratio of 26.57 indicating higher earnings growth potential than its price suggests; Akamai’s stock has a PEG ratio of 1.82 and beta showing lower volatility in comparison with broader markets.
Akamai was founded by Frank T Leighton and Jonathan Seelig with Randall S as their current CEO to provide web performance optimizations along with security measures that ensure smoother deliveries for businesses operating through the internet.
CEO F Thomson Leighton recently acquired a total of 285 shares in the business’s stock worth $25,068; however insider Adam Karon sold his holdings amounting to ten thousand five hundred stocks totaling at around nine hundred forty-five thousand dollars for each share due to undisclosed reasons revealed on SEC’s website. Insiders have acquired a total of eight thousand four hundred seventy-six shares worth $676,043 and sold thirty-five thousand seven hundred forty stocks accumulating to $2,815,700 with insiders owning about 1.70% of the company’s stock.
Several analysts have weighed in the company with mixed ratings, including loop capital who has issued a “hold” rating while lowering the stock’s projected target price from $91 to $79 in March. Cowen also lowered their projection for Akamai’s share value from $137 to $105 while maintaining an “outperform” rating on it in February. Guggenheim also gave the stock a “sell” rating and estimated its value at seventy-five dollars per share whereas Royal Bank of Canada recently downgraded Akamai Technologies from outperform to sector perform with a lowered price range of $85 after raising concerns regarding market volatilities. However, StockNews.com rated Akamai Technologies as “buy.”
Overall, despite some mixed reviews regarding its stock, Akamai Technologies continues to progress in how it provides improved security measures and deliveries for businesses looking for cloud-based services alongside holding excellent investment potential for long term investors who remain keen on this technology infrastructure company.
