Fastly (NYSE:FSLY) Upgraded to "Buy" at Craig Hallum

Key Points

• Craig Hallum has upgraded Fastly from a "hold" rating to a "buy" rating, with a target price of $10.00, indicating a potential upside of 53.26% from the stock's previous close.
• Fastly's quarterly earnings report showed a revenue of $148.71 million, beating analyst estimates, while the company reported earnings per share of ($0.03), representing an improvement year-over-year.
• Institutional investors currently hold a significant majority of Fastly's shares, with ownership reaching approximately 79.71% after several hedge funds increased their positions in the company.

Fastly (NYSE:FSLY - Get Free Report) was upgraded by Craig Hallum from a "hold" rating to a "buy" rating in a report released on Thursday, MarketBeat Ratings reports. The brokerage presently has a $10.00 target price on the stock. Craig Hallum's price objective would indicate a potential upside of 48.46% from the stock's current price.

A number of other analysts have also recently commented on the company. Piper Sandler boosted their price target on Fastly from $6.00 to $7.00 and gave the stock a "neutral" rating in a research report on Thursday, May 8th. Morgan Stanley lifted their target price on Fastly from $7.00 to $8.00 and gave the stock an "equal weight" rating in a report on Thursday, May 8th. KeyCorp raised Fastly to a "sector weight" rating in a research note on Thursday, June 5th. Finally, Royal Bank Of Canada upped their target price on Fastly from $5.00 to $6.00 and gave the company a "sector perform" rating in a research note on Thursday, May 8th. Nine analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $8.69.

Fastly Price Performance

Shares of Fastly stock traded down $0.25 during trading on Thursday, reaching $6.74. 1,521,163 shares of the company's stock were exchanged, compared to its average volume of 2,896,640. The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.49 and a current ratio of 1.49. Fastly has a 1-year low of $4.65 and a 1-year high of $12.08. The company has a market cap of $992.89 million, a P/E ratio of -6.60 and a beta of 1.19. The firm's 50-day moving average price is $7.09 and its 200 day moving average price is $7.17.

Fastly (NYSE:FSLY - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported ($0.03) earnings per share for the quarter, beating analysts' consensus estimates of ($0.05) by $0.02. Fastly had a negative return on equity of 11.98% and a negative net margin of 25.85%. The company had revenue of $148.71 million for the quarter, compared to analyst estimates of $144.86 million. During the same quarter last year, the company earned ($0.07) earnings per share. The company's revenue for the quarter was up 12.3% on a year-over-year basis. As a group, research analysts anticipate that Fastly will post -0.78 earnings per share for the current year.

Insider Transactions at Fastly

In other news, CEO Todd Nightingale sold 12,547 shares of the business's stock in a transaction on Friday, May 23rd. The shares were sold at an average price of $7.19, for a total value of $90,212.93. Following the completion of the sale, the chief executive officer directly owned 1,904,388 shares in the company, valued at approximately $13,692,549.72. The trade was a 0.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Ronald W. Kisling sold 12,000 shares of the business's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $7.41, for a total transaction of $88,920.00. Following the completion of the sale, the chief financial officer directly owned 635,053 shares in the company, valued at $4,705,742.73. This trade represents a 1.85% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 162,124 shares of company stock worth $1,138,628. 6.70% of the stock is currently owned by insiders.

Institutional Trading of Fastly

Institutional investors and hedge funds have recently modified their holdings of the stock. Vident Advisory LLC grew its stake in shares of Fastly by 4.4% during the 1st quarter. Vident Advisory LLC now owns 34,316 shares of the company's stock worth $217,000 after acquiring an additional 1,438 shares in the last quarter. Hsbc Holdings PLC lifted its holdings in Fastly by 6.1% during the 1st quarter. Hsbc Holdings PLC now owns 27,938 shares of the company's stock valued at $175,000 after purchasing an additional 1,612 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd lifted its holdings in shares of Fastly by 12.4% during the first quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 17,852 shares of the company's stock worth $113,000 after buying an additional 1,975 shares in the last quarter. Federated Hermes Inc. increased its position in shares of Fastly by 0.9% in the first quarter. Federated Hermes Inc. now owns 211,638 shares of the company's stock worth $1,340,000 after purchasing an additional 1,988 shares during the period. Finally, Mirae Asset Global Investments Co. Ltd. grew its position in Fastly by 12.8% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 19,433 shares of the company's stock valued at $137,000 after acquiring an additional 2,210 shares during the last quarter. 79.71% of the stock is owned by institutional investors.

Fastly Company Profile

Fastly, Inc operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet.