On Monday, as of 12:30 p.m. EST, Akamai Technologies (NASDAQ:AKAM) shares were up 13.6%.
What Happened?
The incline commenced after news broke that an activist investor had purchased a massive stake in the company. Specifically, based on an SEC filing, Elliott Management had acquired a position that represents around 6.5% of the company’s common shares outstanding.
What Does the Future Entail?
Various analysts have already suggested that Elliott Management should push for the company to increase their profits, stating that Akamai Technologies unique position in global cloud strategy makes it an attractive acquisition target.
Additionally, an analyst at Credit Suisse reiterated that an acquisition is an outcome of Elliott Management’s involvement. As a result, analyst Brad Zelnick boosted his price target on Akamai Technologies to $75. For reference, Zelnick used to have a per-share price target of $50.
While today’s stock increase is pretty significant, it isn’t totally surprising considering Akamai Technologies has seen its shares increasing over the course of the past three months, primarily due to its better-than-expected Q3 results.
Featured Image: twitter
