Insider Buys Additional US$2.0m In Akamai Technologies Stock

Akamai Technologies, Inc. (NASDAQ:AKAM) shareholders (or potential shareholders) will be happy to see that the Co-Founder, F. Leighton, recently bought a whopping US$2.0m worth of stock, at a price of US$92.68. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.9%.

Check out our latest analysis for Akamai Technologies

Akamai Technologies Insider Transactions Over The Last Year

Notably, that recent purchase by F. Leighton is the biggest insider purchase of Akamai Technologies shares that we've seen in the last year. That implies that an insider found the current price of US$95.29 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Akamai Technologies insider decided to buy shares at close to current prices. F. Leighton was the only individual insider to buy shares in the last twelve months.

In total, Akamai Technologies insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Akamai Technologies insiders own 1.8% of the company, worth about US$258m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Akamai Technologies Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Akamai Technologies insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Akamai Technologies. In terms of investment risks, we've identified 1 warning sign with Akamai Technologies and understanding this should be part of your investment process.

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.