On June 6, 2023, F Leighton, the CEO of Akamai Technologies Inc (AKAM, Financial), purchased 536 shares of the company's stock. This move comes as part of a broader trend of insider buying at Akamai Technologies Inc, which has seen 50 insider buys over the past year. In this article, we will take a closer look at F Leighton's recent purchase, the company's business, and the relationship between insider transactions and stock price.
Who is F Leighton of Akamai Technologies Inc?
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 in 1998 and has played a significant role in shaping its growth and success. With a strong background in computer science and mathematics, Leighton has been instrumental in developing the company's innovative technology solutions and driving its strategic vision.
Akamai Technologies Inc's Business Description
Akamai Technologies Inc is a global leader in content delivery network (CDN) services, providing a secure and reliable platform for businesses to deliver their digital content to users worldwide. The company's solutions help organizations optimize their online presence, improve website performance, and protect against cyber threats. Akamai's customer base includes some of the world's largest enterprises, media companies, and e-commerce retailers, who rely on the company's technology to ensure a seamless and secure online experience for their users.
Analysis of Insider Buy/Sell and the Relationship with the Stock Price
Over the past year, F Leighton has purchased a total of 34,498 shares and sold 0 shares. This indicates a strong conviction in the company's prospects and suggests that the CEO believes the stock is undervalued. The recent purchase of 536 shares on June 6, 2023, further reinforces this belief.
The insider transaction history for Akamai Technologies Inc shows a total of 50 insider buys and 27 insider sells over the past year. This trend suggests that insiders are generally more bullish on the company's prospects and see value in the stock at current levels.
Shares of Akamai Technologies Inc were trading for $93.39 apiece on the day of F Leighton's recent buy, giving the stock a market cap of $14.2 billion. The price-earnings ratio is 32.63, which is higher than the industry median of 27.64 but lower than the company's historical median price-earnings ratio.
With a price of $93.39 and a GuruFocus Value of $125.59, Akamai Technologies Inc has a price-to-GF-Value ratio of 0.74. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on 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 CEO F Leighton, along with the broader trend of insider buys at Akamai Technologies Inc, suggests that insiders believe the stock is undervalued and has potential for growth. The company's modestly undervalued GF Value and strong business fundamentals further support this view. Investors may want to consider Akamai Technologies Inc as a potential investment opportunity, keeping in mind the insights provided by insider transactions and the company's valuation.
