Akamai CEO Buys $3 Million in Company Shares

CAMBRIDGE, MA – Akamai Technologies, Inc. (NASDAQ:AKAM), a leader in services-business services with a market capitalization of $11.7 billion, disclosed in a recent SEC filing that its Chief Executive Officer, F. Thomson Leighton, made a significant investment in the company’s stock. On Thursday, Leighton purchased approximately $3 million worth of Akamai’s common stock on the open market, a move that aligns with the company’s ongoing share buyback program. InvestingPro data shows this insider purchase comes as the stock trades near its 52-week low of $75.50.

This transaction comes as a notable move by an insider of the company, reflecting a direct investment in Akamai’s future by its CEO. Insider purchases are often regarded as a sign of confidence in the company’s prospects by those who know it best. The timing is particularly interesting as InvestingPro analysis indicates the stock is currently trading below its Fair Value, with a strong free cash flow yield of 8.5%. Akamai, incorporated in Delaware and headquartered in Cambridge, Massachusetts, has been a prominent player in the tech services industry, maintaining healthy profitability with a gross margin of 59.4%.

The purchase was made public through a Form 8-K filing with the Securities and Exchange Commission, dated February 27, 2025, the same day as the stock acquisition. The filing ensures transparency and provides investors with timely information regarding significant events that could impact the company’s financial conditions or operations.

The CEO’s investment aligns with Akamai’s continued efforts to maintain its status in the market and could be seen as a positive signal to shareholders and potential investors. Akamai’s common stock is traded on the Nasdaq Global Select Market under the ticker symbol AKAM.

The SEC filing did not disclose any further strategic plans or initiatives by the company or its CEO following this purchase. Akamai Technologies has not made any additional comments on the transaction outside of the formal reporting requirements.

This news is based on a press release statement and reflects the facts as reported by the company in its regulatory filing. As with all financial decisions, investors should consider the context of the market and other relevant factors when interpreting insider transactions.

In other recent news, Akamai Technologies has announced its 2025 executive compensation strategy, featuring stock-based bonuses and restricted stock units (RSUs) tied to corporate performance objectives. This move aligns executive pay with shareholder interests, focusing on revenue and adjusted operating income targets, as well as environmental, social, and governance (ESG) goals. Additionally, Akamai has launched a Managed Container Service to enhance business application delivery, leveraging its global cloud platform across over 700 cities. This service is designed to improve application performance by running workloads closer to users and data sources.

In analyst updates, Citi has revised its price target for Akamai to $95 from $102, maintaining a Neutral rating. The adjustment follows Akamai’s fourth-quarter performance, which saw mixed results with a slight beat in Delivery but unmet consensus expectations for 2025 guidance. Craig-Hallum has also downgraded Akamai’s stock from Buy to Hold, setting a new target of $90, citing challenges such as a significant loss of business from TikTok and a slowdown in the security segment.

Furthermore, Akamai announced the resignation of board member Bill Wagner, who has taken a CEO position at Semrush Holdings. The company has not yet disclosed plans to fill the vacancy on its board. These developments occur as Akamai navigates strategic shifts and potential disruptions from restructuring its sales organization and repositioning its Compute business. Despite these challenges, Akamai’s new growth initiatives in the compute segment are reportedly gaining strong traction.

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