Insider Trading Report: Akami Technologies (AKAM)

Thomson Leighton, CEO at Akami Technologies (AKAM), recently bought 642 shares. The buy increased his stake by less than 1 percent, and came to a total cost of $50,061.

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  • The buy follows up on a 934 share buy made a few days before, at a cost of $75,122. And the CEO made 8 separate buys in April, most in the $50,000 range, with two buys in the $75,000 range.

    Overall, insiders own 1.8 percent of shares.

    The cloud services software company is still down about 20 percent over the past year, but shares are well off their lows and trending higher.

    While growth in the cloud services space has slowed over the past year, it’s still growing faster than most other sectors with 19 percent growth. And Akami trades at less than 15 times forward earnings.

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  • Action to take: Shares can likely continue to trend higher from here. While Akami is growing revenues and earnings, the company is still reinvesting cash flow to grow the business and it’s not paying a dividend yet.

    For traders, shares are modestly off their lows, and are trending higher with some bumps along the way. The August $80 calls, last going for about $5.90, is an at-the-money trade. While it may only deliver mid-double-digit gains, it has a higher chance of delivering a profit compared to an option with a higher strike price.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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