Fastly (NYSE:FSLY) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada has raised Fastly's price target from $6.00 to $7.00, suggesting a potential downside of 4.18% from its last close while maintaining a "sector perform" rating.
• Fastly's stock rose 12.0% to $7.31, with significant trading volume of over 6 million shares compared to its average of around 2.8 million.
• Fastly's recent earnings report showed a revenue increase of 12.3% year-over-year, with EPS beating consensus estimates by $0.02.

Fastly (NYSE:FSLY - Get Free Report) had its target price boosted by Royal Bank Of Canada from $6.00 to $7.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 4.09% from the company's current price.

A number of other analysts also recently issued reports on FSLY. Piper Sandler lifted their price target on Fastly from $6.00 to $7.00 and gave the company a "neutral" rating in a research report on Thursday, May 8th. Morgan Stanley boosted their target price on Fastly from $7.00 to $8.00 and gave the stock an "equal weight" 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, Craig Hallum upgraded Fastly from a "hold" rating to a "buy" rating and set a $10.00 target price for the company in a research report on Thursday. Nine research analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat.com, Fastly currently has an average rating of "Hold" and a consensus target price of $8.69.

Fastly Stock Performance

Shares of Fastly stock traded down $0.27 during trading hours on Thursday, hitting $6.73. 3,344,583 shares of the company's stock traded hands, compared to its average volume of 2,908,498. The company has a fifty day simple moving average of $7.09 and a 200-day simple moving average of $7.17. Fastly has a 12-month low of $4.65 and a 12-month high of $12.08. The stock has a market capitalization of $991.27 million, a price-to-earnings ratio of -6.53 and a beta of 1.19. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.49 and a quick ratio of 1.49.

Fastly (NYSE:FSLY - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analyst estimates of $144.86 million. During the same quarter last year, the firm posted ($0.07) EPS. The firm's revenue for the quarter was up 12.3% on a year-over-year basis. Equities research analysts anticipate that Fastly will post -0.78 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Ronald W. Kisling sold 12,000 shares of the company's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $7.41, for a total transaction of $88,920.00. Following the transaction, the chief financial officer directly owned 635,053 shares of the company's stock, valued at $4,705,742.73. This represents a 1.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Todd Nightingale sold 12,547 shares of the company'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 transaction, 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 disclosure for this sale can be found here. Over the last three months, insiders have sold 162,124 shares of company stock valued at $1,138,628. 6.70% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Fastly

Several institutional investors have recently added to or reduced their stakes in the company. Universal Beteiligungs und Servicegesellschaft mbH lifted its position in Fastly by 31.6% in the second quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 80,162 shares of the company's stock worth $566,000 after buying an additional 19,241 shares during the last quarter. Intech Investment Management LLC grew its stake in Fastly by 3.9% during the 2nd quarter. Intech Investment Management LLC now owns 119,909 shares of the company's stock worth $847,000 after buying an additional 4,522 shares during the last quarter. Creative Planning grew its stake in Fastly by 30.9% during the 2nd quarter. Creative Planning now owns 33,678 shares of the company's stock worth $238,000 after buying an additional 7,959 shares during the last quarter. Police & Firemen s Retirement System of New Jersey grew its stake in Fastly by 16.5% during the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 32,522 shares of the company's stock worth $230,000 after buying an additional 4,612 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in Fastly by 6.3% during the 2nd quarter. Geode Capital Management LLC now owns 3,212,253 shares of the company's stock valued at $22,681,000 after purchasing an additional 189,423 shares during the last quarter. Hedge funds and other 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.