Fastly (NASDAQ:FSLY) Stock Price Down 6.9% - Here's Why

Key Points

• Fastly shares fell 6.9% to about $24.76, with trading volume roughly 94% below the average session volume.
• Analyst sentiment remains mixed: Fastly has an average “Hold” rating and an average price target of $25.33, despite several brokerages raising their targets.
• Fastly exceeded quarterly earnings and revenue expectations, but remains unprofitable; insiders also sold a combined 166,089 shares worth approximately $3.14 million over the past three months.

Shares of Fastly, Inc. (NASDAQ:FSLY - Get Free Report) were down 6.9% during trading on Wednesday . The stock traded as low as $25.22 and last traded at $24.7550. Approximately 605,816 shares changed hands during trading, a decline of 94% from the average session volume of 9,724,135 shares. The stock had previously closed at $26.59.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on FSLY. KeyCorp boosted their price objective on Fastly from $27.00 to $30.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Piper Sandler increased their target price on Fastly from $27.00 to $28.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Citigroup lifted their target price on Fastly from $13.00 to $25.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Royal Bank Of Canada upped their price target on Fastly from $22.00 to $28.00 and gave the company a "sector perform" rating in a research report on Thursday, August 6th. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Fastly in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Fastly currently has an average rating of "Hold" and an average target price of $25.33.

Fastly Trading Down 6.3%

The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.33. The business's 50-day moving average is $20.91 and its two-hundred day moving average is $21.04. The firm has a market cap of $3.97 billion, a P/E ratio of -47.06 and a beta of 0.34.

Fastly (NASDAQ:FSLY - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.07 by $0.08. The firm had revenue of $183.32 million for the quarter, compared to analysts' expectations of $173.94 million. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. As a group, analysts expect that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Charles Lacey Compton III sold 14,868 shares of the business's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $25.00, for a total transaction of $371,700.00. Following the completion of the transaction, the chief executive officer owned 1,030,592 shares of the company's stock, valued at approximately $25,764,800. The trade was a 1.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Richard Wong sold 2,500 shares of the business's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $16.48, for a total transaction of $41,200.00. Following the transaction, the chief financial officer directly owned 1,239,301 shares of the company's stock, valued at approximately $20,423,680.48. This trade represents a 0.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 166,089 shares of company stock valued at $3,144,116 in the last three months. 4.20% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Fastly

Several large investors have recently made changes to their positions in the company. C M Bidwell & Associates Ltd. bought a new stake in shares of Fastly during the second quarter valued at approximately $72,000. Handelsbanken Fonder AB bought a new position in Fastly in the 2nd quarter worth approximately $812,000. Assenagon Asset Management S.A. bought a new position in Fastly in the 2nd quarter worth approximately $774,000. Byrne Asset Management LLC acquired a new stake in Fastly in the 2nd quarter valued at approximately $173,000. Finally, 180 Wealth Advisors LLC increased its position in Fastly by 8.2% in the 2nd quarter. 180 Wealth Advisors LLC now owns 84,718 shares of the company's stock valued at $1,555,000 after acquiring an additional 6,402 shares during the period. Institutional investors and hedge funds own 79.71% of the company's stock.

About Fastly

Fastly, Inc operates an edge cloud platform designed to accelerate, secure and enable modern digital experiences. The company offers a suite of services including a content delivery network (CDN), edge compute, load balancing, web application firewall (WAF) and DDoS protection. Fastly’s real-time architecture allows customers to seamlessly deploy software logic at the network edge, reducing latency by bringing applications and content closer to end users.

Founded in 2011 by Artur Bergman, Fastly has evolved from a pure-play CDN provider into a comprehensive edge cloud platform.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source