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CAMBRIDGE, MA — Edward J. McGowan, the Chief Financial Officer of Akamai Technologies Inc . (NASDAQ:AKAM), recently executed a significant stock sale. The transaction comes as InvestingPro analysis shows the company’s stock trading near $80.65, approximately 28% below its 52-week high of $111.78. According to a recent SEC filing, McGowan sold a total of 11,804 shares of Akamai common stock on March 11, 2025, generating proceeds of approximately $971,911.
The shares were sold at a weighted average price between $82.1516 and $83.4421. The transactions were conducted under a Rule 10b5-1 plan, which McGowan adopted in September 2024, allowing for pre-scheduled trading of securities.
Following these transactions, McGowan retains direct ownership of 22,706 shares, with an additional 66.676 shares held indirectly through a 401(k) plan. Additionally, his total beneficial ownership includes 9,190 shares deferred under Akamai’s Amended and Restated U.S. Non-Qualified Deferred Compensation Plan. With an overall Financial Health Score of "FAIR" according to InvestingPro, which offers comprehensive analysis and 6 additional ProTips for this stock, investors can access deeper insights into Akamai’s valuation and future prospects through the platform’s detailed Pro Research Report.
In other recent news, Akamai Technologies has experienced several noteworthy developments. S&P Global Ratings revised Akamai’s outlook to negative due to rising leverage, which increased to 1.8x in 2024, surpassing the 1.5x threshold for its ’BBB+’ rating. This increase in leverage is attributed to higher debt levels, acquisitions, and significant capital expenditures. In addition, CEO F. Thomson Leighton made a notable purchase of approximately $3 million worth of the company’s stock, an action generally interpreted as a sign of confidence in the company’s future prospects.
Akamai also announced a new executive compensation strategy for 2025, including stock-based bonuses and restricted stock units (RSUs) tied to corporate performance objectives. The compensation plan aims to align executive rewards with revenue and adjusted operating income targets, incorporating environmental, social, and governance (ESG) objectives. Furthermore, board member Bill Wagner resigned to assume a CEO role at Semrush Holdings, Inc., a move that is not related to any disagreements with Akamai’s policies or practices.
The company reported $100 million in restructuring costs in 2024, related to workforce reductions and a strategic realignment towards its compute and security segments. Despite these financial challenges, Akamai’s strategic shift towards cloud and security markets is seen as supportive of long-term growth. Investors will be closely monitoring these developments as Akamai continues to navigate its financial and strategic landscape.
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