Freedom Broker Has Lowered Expectations for Fastly (NASDAQ:FSLY) Stock Price

Key Points

• Freedom Broker cut its Fastly price target from $37 to $35 but maintained a Buy rating; the new target implies 114.79% upside from the stock’s cited $16.30 price.
• Analyst views are mixed: MarketBeat reports an overall Hold consensus and an average price target of $26, with one Strong Buy, seven Buy, five Hold, and two Sell ratings.
• Fastly beat quarterly estimates, reporting EPS of $0.17 versus $0.12 expected and revenue of $190.19 million versus $187.82 million forecast.

Fastly (NASDAQ:FSLY - Get Free Report) had its price objective dropped by Freedom Broker from $37.00 to $35.00 in a research note issued on Monday, Benzinga reports. The firm presently has a "buy" rating on the stock. Freedom Broker's target price would suggest a potential upside of 114.79% from the company's current price.

FSLY has been the topic of several other research reports. Oppenheimer upgraded Fastly from a "market perform" rating to an "outperform" rating and set a $35.00 price target on the stock in a research note on Friday, October 9th. Canaccord Genuity Group assumed coverage on Fastly in a research report on Friday, July 17th. They set a "buy" rating and a $27.00 price objective for the company. DA Davidson raised their price objective on Fastly from $21.00 to $23.00 and gave the company a "neutral" rating in a research note on Wednesday, September 23rd. Bank of America lifted their target price on Fastly from $20.00 to $22.00 and gave the company an "underperform" rating in a research report on Wednesday, September 23rd. Finally, Citigroup lowered their target price on Fastly from $27.00 to $25.00 and set a "neutral" rating for the company in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $26.00.

Fastly Price Performance

FSLY traded up $0.45 on Monday, hitting $16.30. 3,901,053 shares of the stock were exchanged, compared to its average volume of 8,905,239. Fastly has a 12 month low of $7.87 and a 12 month high of $34.82. The business has a 50-day moving average of $23.97 and a two-hundred day moving average of $21.52. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.07 and a quick ratio of 3.07. The firm has a market capitalization of $2.63 billion, a price-to-earnings ratio of -40.63 and a beta of 0.22.

Fastly (NASDAQ:FSLY - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $0.17 EPS for the quarter, beating the consensus estimate of $0.12 by $0.05. The firm had revenue of $190.19 million for the quarter, compared to analyst estimates of $187.82 million. Fastly had a negative net margin of 8.74% and a negative return on equity of 4.53%. Sell-side analysts forecast that Fastly will post -0.27 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Charles Compton, III sold 8,941 shares of the company's stock in a transaction on Monday, October 26th. The shares were sold at an average price of $24.98, for a total transaction of $223,346.18. Following the completion of the transaction, the chief executive officer directly owned 822,559 shares in the company, valued at approximately $20,547,523.82. This represents a 1.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 37,039 shares of Fastly stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $25.48, for a total value of $943,753.72. Following the sale, the chief technology officer directly owned 1,024,239 shares in the company, valued at $26,097,609.72. The trade was a 3.49% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 1,323,893 shares of company stock worth $35,452,889. Insiders own 4.20% of the company's stock.

Institutional Trading of Fastly

Several institutional investors have recently modified their holdings of the business. GAMMA Investing LLC increased its stake in shares of Fastly by 38.4% in the third quarter. GAMMA Investing LLC now owns 1,510 shares of the company's stock valued at $39,000 after buying an additional 419 shares during the period. EverSource Wealth Advisors LLC lifted its stake in shares of Fastly by 39.8% in the first quarter. EverSource Wealth Advisors LLC now owns 2,204 shares of the company's stock worth $64,000 after acquiring an additional 627 shares during the period. PNC Financial Services Group Inc. increased its position in Fastly by 84.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company's stock valued at $40,000 after purchasing an additional 633 shares during the period. Cim Investment Management Inc. raised its holdings in Fastly by 7.4% during the 2nd quarter. Cim Investment Management Inc. now owns 10,816 shares of the company's stock worth $199,000 after purchasing an additional 747 shares during the last quarter. Finally, Signaturefd LLC raised its holdings in Fastly by 98,700.0% during the 3rd quarter. Signaturefd LLC now owns 988 shares of the company's stock worth $25,000 after purchasing an additional 987 shares during the last quarter. Institutional investors own 79.71% of the company's stock.

Fastly Company Profile

Fastly, Inc provides an edge cloud platform that helps businesses deliver and secure websites, applications, and digital content. Its services include content delivery, web application and API protection, DDoS mitigation, bot management, and tools for monitoring and analyzing internet traffic.

The company also offers edge computing through Fastly Compute, which lets developers run code closer to users. Fastly's platform is designed to help organizations improve the speed, reliability, and security of online services, and it serves customers across multiple industries and geographies.

Founded in 2011 by Artur Bergman, Fastly began as a content delivery network provider and has since expanded into a broader range of edge cloud services.

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