On May 26, 2023, F Leighton, the CEO of Akamai Technologies Inc (AKAM, Financial), purchased 852 shares of the company's stock. This move is noteworthy as it reflects the confidence of the CEO in the company's future prospects. In this article, we will discuss F Leighton's background, Akamai Technologies Inc's business, and analyze the insider buying and selling trends in relation to the stock price.
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 is one of the co-founders of the company and has been with Akamai since its inception in 1998. He has played a significant role in shaping the company's growth and success over the years. With a strong background in technology and business, Leighton's insider buying activity is a positive signal for investors.
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 vast network of servers and intelligent software, Akamai helps enterprises to deliver content and applications securely and efficiently to users worldwide.
Analysis of Insider Buy/Sell and Relationship with Stock Price
Over the past year, F Leighton has purchased a total of 32,871 shares and sold 0 shares. This indicates a strong bullish sentiment from the CEO towards the company's stock. In the same period, there have been 47 insider buys and 25 insider sells for Akamai Technologies Inc. This trend suggests that insiders are generally optimistic about the company's future performance.
On the day of F Leighton's recent purchase, shares of Akamai Technologies Inc were trading at $88.2 apiece, giving the stock a market cap of $13,784.946 million. The price-earnings ratio is 31.67, which is higher than the industry median of 26.79 but lower than the company's historical median price-earnings ratio. This suggests that the stock is relatively fairly valued compared to its peers and its own historical valuation.
With a price of $88.2 and a GuruFocus Value of $125.35, Akamai Technologies Inc has a price-to-GF-Value ratio of 0.7. This means the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
Conclusion
The recent insider buying activity by F Leighton, the CEO of Akamai Technologies Inc, is a positive signal for investors. With a strong track record and insider buying trends indicating optimism about the company's future performance, the stock appears to be modestly undervalued based on its GF Value. Investors should consider these factors when evaluating Akamai Technologies Inc as a potential investment opportunity.
