Akamai Stock Buy Hold or Sell Recommendation

AKAM
 Stock
  

USD 92.12  0.79  0.86%   

Given the investment horizon of 90 days and your highly speculative risk level, our recommendation regarding Akamai Technologies is 'Buy'. Macroaxis provides Akamai Technologies buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AKAM positions. The advice algorithm takes into account all of Akamai Technologies' available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Akamai Technologies' buy-and-hold perspective. Please continue to Akamai Technologies Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Akamai and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Akamai Technologies.

Execute Akamai Technologies Buy or Sell Advice

The Akamai recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Akamai Technologies. Macroaxis does not own or have any residual interests in Akamai Technologies or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Akamai Technologies' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Akamai TechnologiesBuy Akamai Technologies
Buy

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Akamai Technologies has a Risk Adjusted Performance of (0.25), Jensen Alpha of (0.26), Total Risk Alpha of (0.11) and Treynor Ratio of (0.55)
Macroaxis provides advice on Akamai Technologies to complement and cross-verify current analyst consensus on Akamai Technologies. Our investment recommendation engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Akamai Technologies is not overpriced, please confirm all Akamai Technologies fundamentals, including its revenue, current ratio, and the relationship between the number of shares shorted and cash and equivalents . Given that Akamai Technologies has a number of shares shorted of 12.19 M, we suggest you to validate Akamai Technologies market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Akamai Technologies Trading Alerts and Improvement Suggestions

Akamai Technologies generated a negative expected return over the last 90 days
Akamai Technologies has a strong financial position based on the latest SEC filings
Over 97.0% of the company shares are held by institutions such as insurance companies
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Akamai Technologies current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Akamai analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Akamai analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price125.53
Target Median Price120.00
Target High Price168.00
Recommendation Mean2.20
Number Of Analyst Opinions15
Target Low Price90.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Akamai Technologies Returns Distribution Density

The distribution of Akamai Technologies' historical returns is an attempt to chart the future uncertainty of Akamai Technologies' future price movements. The chart of the probability distribution of Akamai Technologies stock daily returns describes the distribution of returns around its average expected value. We use Akamai Technologies price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Akamai Technologies returns is essential to provide solid investment advice for Akamai Technologies stock.
Mean Return-0.38Value At Risk-3.93
Potential Upside1.95Standard Deviation2.12
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Akamai Technologies historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Akamai Technologies Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(414.78 M)(405.74 M)(562.08 M)(731.87 M)(545.23 M)(588.27 M)
Depreciation Amortization and Accretion372.31 M434.52 M440.67 M478.39 M550.63 M485.29 M
Net Cash Flow or Change in Cash and Cash Equivalents(10.2 M)722.56 M(642.84 M)(40.68 M)184.28 M198.83 M
Net Cash Flow Business Acquisitions and Disposals(369.07 M)(79 K)(165.33 M)(164.38 M)(598.83 M)(614.58 M)
Issuance Purchase of Equity Shares(305.51 M)(567.45 M)(92.26 M)(133.81 M)(462.62 M)(474.8 M)
Net Cash Flow from Financing(365 M)233.61 M(35.68 M)(223.64 M)(562 M)(576.79 M)
Net Cash Flow from Investing(459.17 M)(506.53 M)(1.67 B)(1.04 B)(646.9 M)(697.97 M)
Net Cash Flow Investment Acquisitions and Disposals326.27 M(98.65 M)(940.93 M)(154.85 M)501.48 M541.07 M
Net Cash Flow from Operations800.98 M1.01 B1.06 B1.22 B1.4 B1.23 B
Effect of Exchange Rate Changes on Cash12.99 M(12.84 M)2.47 M10.94 M(11.38 M)(11.68 M)
Share Based Compensation164.31 M183.81 M187.14 M197.41 M202.76 M184.36 M

Akamai Technologies Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Akamai Technologies or Technology sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Akamai Technologies stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Akamai stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.26
β
Beta against DOW0.71
σ
Overall volatility
2.19
Ir
Information ratio -0.09

Akamai Technologies Volatility Alert

Akamai Technologies exhibits very low volatility with skewness of -1.74 and kurtosis of 5.24. However, we advise investors to further study Akamai Technologies technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Akamai Technologies' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Akamai Technologies' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Akamai Technologies Implied Volatility

Akamai Technologies' implied volatility exposes the market's sentiment of Akamai Technologies stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Akamai Technologies' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Akamai Technologies stock will not fluctuate a lot when Akamai Technologies' options are near their expiration.

Akamai Technologies Fundamentals Vs Peers

Comparing Akamai Technologies' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Akamai Technologies' direct or indirect competition across all of the common fundamentals between Akamai Technologies and the related equities. This way, we can detect undervalued stocks with similar characteristics as Akamai Technologies or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Akamai Technologies' fundamental indicators could also be used in its relative valuation, which is a method of valuing Akamai Technologies by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Akamai Technologies to competition
FundamentalsAkamai TechnologiesPeer Average
Return On Equity14.84 %(0.31) %
Return On Asset6.35 %(0.14) %
Profit Margin18.83 %(1.27) %
Operating Margin34.49 %(5.51) %
Current Valuation19.78 B16.62 B
Shares Outstanding162.48 M571.82 M
Shares Owned by Insiders1.68 %10.09 %
Shares Owned by Institutions96.71 %39.21 %
Number of Shares Shorted12.19 M4.71 M
Price to Earning25.30 X28.72 X
Price to Book3.27 X9.51 X
Price to Sales4.32 X11.42 X
Revenue3.46 B9.43 B
Gross Profit2.19 B27.38 B
EBITDA1.19 B3.9 B
Net Income651.64 M570.98 M
Cash and Equivalents1.08 B2.7 B
Cash per Share6.72 X5.01 X
Total Debt2.86 B5.32 B
Debt to Equity0.63 %48.70 %
Current Ratio2.43 X2.16 X
Book Value Per Share28.21 X1.93 K
Cash Flow from Operations1.4 B971.22 M
Short Ratio9.85 X4.00 X
Earnings Per Share3.64 X3.12 X
Price to Earnings To Growth1.70 X4.89 X
Number of Employees8.7 K18.84 K
Beta0.59-0.15
Market Capitalization14.97 B19.03 B
Total Asset4.18 B29.47 B
Retained Earnings51.79 M9.33 B
Working Capital920.75 M1.48 B
Current Asset1.25 B9.34 B
   Exercise or conversion by Madhu Ranganathan of 1676 shares of Akamai Technologies subject to Rule 16b-3 [view details]

About Akamai Technologies Buy or Sell Advice

When is the right time to buy or sell Akamai Technologies? Buying financial instruments such as Akamai Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Akamai Technologies investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable138.95 M118.55 M109.93 M90.98 M
Receivables551.94 M660.05 M675.93 M729.29 M

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Please continue to Akamai Technologies Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Akamai Technologies information on this page should be used as a complementary analysis to other Akamai Technologies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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Is Akamai Technologies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Akamai Technologies. If investors know Akamai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Akamai Technologies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.22
Market Capitalization
14.8 B
Quarterly Revenue Growth YOY
0.072
Return On Assets
0.0628
Return On Equity
0.14
The market value of Akamai Technologies is measured differently than its book value, which is the value of Akamai that is recorded on the company's balance sheet. Investors also form their own opinion of Akamai Technologies' value that differs from its market value or its book value, called intrinsic value, which is Akamai Technologies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Akamai Technologies' market value can be influenced by many factors that don't directly affect Akamai Technologies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Akamai Technologies' value and its price as these two are different measures arrived at by different means. Investors typically determine Akamai Technologies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Akamai Technologies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.