On September 18, 2023, Edward Mcgowan, the Chief Financial Officer (CFO) of Akamai Technologies Inc (AKAM, Financial), sold 2,456 shares of the company. This move is part of a series of insider transactions that have been taking place over the past year.
Edward Mcgowan is a seasoned financial executive with a wealth of experience in the technology sector. As the CFO of Akamai Technologies Inc, he is responsible for the company's financial strategy and operations, including accounting, financial planning and analysis, treasury, tax, and investor relations.
Akamai Technologies Inc is a leading provider of cloud services for delivering, optimizing, and securing online content and business applications. The company's solutions are designed to help businesses accelerate innovation in the hyperconnected world by removing the complexities of technology so they can focus on driving their business faster forward.
Over the past year, Edward Mcgowan has sold a total of 20,248 shares and purchased 0 shares. This recent sale of 2,456 shares is part of this larger trend.
The insider transaction history for Akamai Technologies Inc shows a total of 54 insider buys and 37 insider sells over the past year. This suggests a mixed sentiment among the company's insiders, with a slightly higher number of buys than sells.
On the day of the insider's recent sale, shares of Akamai Technologies Inc were trading for $103.92 apiece, giving the stock a market cap of $16.19 billion. This is a significant valuation for a company in the technology sector, and it reflects the company's strong position in the market.
The price-earnings ratio of Akamai Technologies Inc is 35.89, which is higher than the industry median of 27.27 and higher than the company’s historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers and its own historical standards.
However, with a price of $103.92 and a GuruFocus Value of $125.83, Akamai Technologies Inc has a price-to-GF-Value ratio of 0.83. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the recent sale of shares by Edward Mcgowan, along with the overall insider transaction history, suggests a mixed sentiment among insiders. However, based on the company's GF Value, the stock appears to be modestly undervalued, potentially offering an attractive entry point for investors.
