Akamai Technologies Insider Ups Holding During Year

From what we can see, insiders were net buyers in Akamai Technologies, Inc.'s (NASDAQ:AKAM ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Akamai Technologies

In the last twelve months, the biggest single purchase by an insider was when Co-Founder F. Leighton bought US$3.0m worth of shares at a price of US$80.01 per share. So it's clear an insider wanted to buy, at around the current price, which is US$80.05. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Akamai Technologies insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was F. Leighton.

F. Leighton purchased 59.67k shares over the year. The average price per share was US$84.41. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Akamai Technologies

Akamai Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Akamai Technologies Have Bought Stock Recently

At Akamai Technologies,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, Co-Founder F. Leighton bought US$3.0m worth of shares in that time. On the other hand, insiders netted US$1.1m by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Akamai Technologies Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Akamai Technologies insiders own 1.9% of the company, worth about US$232m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Akamai Technologies Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Akamai Technologies insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Akamai Technologies.

Of course Akamai Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.