On May 23, 2023, F Leighton, CEO of Akamai Technologies Inc (AKAM, Financial), purchased 572 shares of the company's stock. This move is noteworthy as it indicates a strong vote of confidence in the company's future prospects and performance.
Who is F Leighton?
F Leighton is the CEO of Akamai Technologies Inc, a leading provider of cloud services for delivering, optimizing, and securing online content and business applications. Leighton has been with the company since its inception and has played a significant role in shaping its growth and success. His insider buying activity is a strong signal for investors to consider when evaluating the company's stock.
Akamai Technologies Inc's Business Description
Akamai Technologies Inc is a global leader in Content Delivery Network (CDN) services, making the internet fast, reliable, and secure for its customers. The company's advanced web performance, mobile performance, cloud security, and media delivery solutions are revolutionizing how businesses optimize consumer, enterprise, and entertainment experiences for any device, anywhere. With a strong focus on innovation and customer satisfaction, Akamai Technologies Inc continues to be a dominant player in the CDN market.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, F Leighton has purchased a total of 32,019 shares and sold 0 shares. This pattern of consistent buying without any selling activity demonstrates a strong belief in the company's potential for growth and success. Additionally, the insider transaction history for Akamai Technologies Inc shows that there have been 46 insider buys and 25 insider sells over the past year. This trend suggests that insiders are generally more bullish on the company's prospects than bearish.
On the day of F Leighton's recent purchase, shares of Akamai Technologies Inc were trading at $87.62 apiece, giving the stock a market cap of $13,338.992 million. The price-earnings ratio is 30.64, which is higher than the industry median of 26.98 but lower than the company's historical median price-earnings ratio. This indicates that the stock may be slightly overvalued compared to its peers but undervalued based on its historical performance.
With a price of $87.62 and a GuruFocus Value of $125.29, Akamai Technologies Inc has a price-to-GF-Value ratio of 0.7. This means the stock is significantly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by F Leighton, CEO of Akamai Technologies Inc, is a positive signal for investors considering the company's stock. The stock appears to be undervalued based on its GF Value, and the overall insider transaction trend suggests a bullish sentiment among insiders. Investors should keep a close eye on Akamai Technologies Inc as it continues to innovate and grow in the CDN market.
