Stock Updates

Is this Large Market Cap Stock target price reasonable for Akamai Technologies, Inc. (NASDAQ:AKAM)?

The company in question is, Akamai Technologies, Inc. (NASDAQ:AKAM) currently with a stock price of 54.37 (-0.15% today). The market cap for Akamai Technologies, Inc. is 9498.26, and is in the sector Technology, and Internet Information Providers industry. The target price for Akamai Technologies, Inc. is 60.22. Currently Akamai Technologies, Inc. is trading with a P/E of 29.93, and a forward P/E of 19.11. Average volume for Akamai Technologies, Inc. is 2180.3 and so far today it is 674873.

Performance in the last year for Akamai Technologies, Inc. has been -22.52%. For EPS growth, Akamai Technologies, Inc. has seen a growth of -3.30%, and is looking to grow in the next year to 11.07%. More long term stats show that EPS growth has been 14.50% over the last five years and could be 13.13% for the next five years. Akamai Technologies, Inc. has seen sales growth quarter over quarter at 5.80%, with EPS growth quarter over quarter at 12.30%. The 20-day simple moving average is 2.50%, with the 200-day simple moving average coming to 3.66%.

Since the IPO date for Akamai Technologies, Inc. on the 10/29/1999, Akamai Technologies, Inc. has seen performance year to date to be 3.46%. With Akamai Technologies, Inc. trading at 54.37, the dividend yield is *TBA, and the EPS is 1.82.

So could Akamai Technologies, Inc., be undervalued? Well as said before P/E is 29.93. The PEG is 2.28, P/S is 4.18 and the P/B is at 3.03. The P/cash is 10.93, with P/free cash flow at 20.6.

Akamai Technologies, Inc. ability to deal with debt shows that the current ratio is 3.6, and the quick ratio is 3.6. This is with long term debt/equity at 0.2, and total debt/equity at 0.2.

In terms of margins, Akamai Technologies, Inc. has a gross margin of 65.80%, an operating margin of 20.40% and a profit margin of 14.30%.Payout ratio for Akamai Technologies, Inc. is 0.00%. Return on assets come to 7.70% with return on investment coming to 8.90%.

Insider ownership for Akamai Technologies, Inc., is at 0.20% and institutional ownership comes to 96.80%. Outstanding shares are at 174.44. While shares float is 170.03. The float short is currently 6.90%, and short ratio is 5.38.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

About the author

Mark Hines

Leave a Comment