Craig Hallum Upgrades Fastly (NYSE:FSLY) to Buy

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 equities researchers at Craig Hallum from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Thursday,Briefing.com Automated Import reports. The brokerage currently has a $10.00 target price on the stock. Craig Hallum's price objective points to a potential upside of 53.26% from the stock's previous close.

FSLY has been the subject of a number of other research reports. Royal Bank Of Canada boosted their price objective on Fastly from $5.00 to $6.00 and gave the company a "sector perform" rating in a research report on Thursday, May 8th. Piper Sandler raised their target price on Fastly from $6.00 to $7.00 and gave the company a "neutral" rating in a research report on Thursday, May 8th. KeyCorp upgraded Fastly to a "sector weight" rating in a research report on Thursday, June 5th. Finally, Morgan Stanley raised their target price on Fastly from $7.00 to $8.00 and gave the company an "equal weight" rating in a research report on Thursday, May 8th. Nine investment analysts have rated the stock with a hold rating and one has assigned a buy rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $8.50.

Fastly Price Performance

Fastly stock opened at $6.53 on Thursday. Fastly has a 12-month low of $4.65 and a 12-month high of $12.08. The stock has a market capitalization of $944.08 million, a P/E ratio of -5.99 and a beta of 1.19. The firm's 50-day moving average is $7.09 and its two-hundred day moving average is $7.24. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.50 and a quick ratio of 1.50.

Fastly (NYSE:FSLY - Get Free Report) last announced its quarterly 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. The company had revenue of $148.71 million for the quarter, compared to analyst estimates of $144.86 million. Fastly had a negative net margin of 27.73% and a negative return on equity of 12.29%. Fastly's revenue for the quarter was up 12.3% on a year-over-year basis. During the same quarter last year, the business earned ($0.07) EPS. Equities analysts predict that Fastly will post -0.78 earnings per share for the current year.

Insider Activity at Fastly

In other Fastly news, CRO Scott R. Lovett sold 127,608 shares of the firm's stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $6.95, for a total transaction of $886,875.60. Following the completion of the transaction, the executive owned 1,287,145 shares in the company, valued at $8,945,657.75. This trade represents a 9.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Todd Nightingale sold 12,547 shares of the company's stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $7.19, for a total transaction of $90,212.93. Following the sale, the chief executive officer directly owned 1,904,388 shares in the company, valued at $13,692,549.72. This represents a 0.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 162,124 shares of company stock worth $1,138,628 over the last three months. Company insiders own 6.70% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of FSLY. Alyeska Investment Group L.P. bought a new position in shares of Fastly in the 4th quarter valued at about $35,334,000. Penserra Capital Management LLC increased its stake in shares of Fastly by 83.1% in the 1st quarter. Penserra Capital Management LLC now owns 7,177,688 shares of the company's stock valued at $45,434,000 after acquiring an additional 3,256,629 shares during the last quarter. Marshall Wace LLP bought a new stake in shares of Fastly in the 4th quarter valued at about $7,618,000. Point72 Asset Management L.P. bought a new stake in shares of Fastly in the 4th quarter valued at about $7,088,000. Finally, Two Sigma Investments LP increased its stake in shares of Fastly by 179.3% in the 4th quarter. Two Sigma Investments LP now owns 1,101,329 shares of the company's stock valued at $10,397,000 after acquiring an additional 707,053 shares during the last quarter. Institutional investors own 79.71% of the company's stock.

About Fastly

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.

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