Bullish indicating open at $55-$60, IPO prices at $37
CAMBRIDGE, MA—Karon Adam, Chief Operating Officer and General Manager of Edge Technology Group at Akamai Technologies Inc . (NASDAQ:AKAM), recently sold shares of the company’s stock, according to a filing with the Securities and Exchange Commission (SEC). On March 11, Adam sold a total of 9,861 shares, generating proceeds of approximately $811,943. The shares were sold in two separate transactions at prices ranging from $82.1541 to $83.4554 per share. According to InvestingPro analysis, the stock appears undervalued at current levels, with a strong free cash flow yield of 8%.
Following these transactions, Adam holds 16,136 shares directly, with an additional 71.037 shares held indirectly through a 401(k) plan. The sales were conducted under a Rule 10b5-1 plan, which allows company insiders to set up a predetermined plan to sell stocks in a manner that avoids insider trading accusations. While this insider has reduced holdings, InvestingPro data reveals management has been actively buying back shares, suggesting confidence in the company’s outlook.
Akamai Technologies, based in Cambridge, Massachusetts, is a global leader in content delivery network services, providing cloud services for delivering, optimizing, and securing online content and business applications. The company maintains healthy financials with a gross profit margin of 59% and has generated nearly $1 billion in free cash flow over the last twelve months. Get deeper insights into Akamai’s financial health and growth prospects with InvestingPro’s comprehensive research report, one of 1,400+ available for top US stocks.
In other recent news, Akamai Technologies has experienced significant developments. S&P Global Ratings revised Akamai’s outlook to negative, citing increased leverage that surpassed the 1.5x threshold due to elevated debt levels, acquisitions, and capital expenditures. The company’s leverage reached 1.8x by the end of 2024, with gross reported debt increasing to $3.5 billion. In a notable insider transaction, CEO F. Thomson Leighton purchased approximately $3 million of Akamai’s stock, a move often seen as a vote of confidence in the company’s future. This purchase was disclosed in a recent SEC filing, highlighting the CEO’s direct investment in Akamai’s prospects.
Additionally, Akamai announced a new executive compensation plan for 2025, which includes stock-based bonuses tied to corporate performance objectives. The plan aims to align executive compensation with shareholder interests and incorporates environmental, social, and governance (ESG) objectives. Meanwhile, board member Bill Wagner resigned to accept a CEO position at Semrush Holdings, Inc., a change that Akamai clarified was not due to any disagreements with the company. These developments reflect Akamai’s ongoing strategic adjustments and executive movements as it navigates its financial and operational landscape.
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