Fastly (NYSE:FSLY) Given New $7.00 Price Target at Royal Bank Of Canada

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 price objective boosted by research analysts at Royal Bank Of Canada from $6.00 to $7.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective suggests a potential downside of 4.18% from the company's previous close.

A number of other analysts also recently weighed in on FSLY. Morgan Stanley increased their price target on shares of Fastly from $7.00 to $8.00 and gave the company an "equal weight" rating in a report on Thursday, May 8th. Craig Hallum upgraded shares of 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. Piper Sandler raised their price objective on shares of Fastly from $6.00 to $7.00 and gave the company a "neutral" rating in a research report on Thursday, May 8th. Finally, KeyCorp upgraded shares of Fastly to a "sector weight" rating in a research report on Thursday, June 5th. Nine equities research 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, Fastly currently has an average rating of "Hold" and an average target price of $8.61.

Fastly Stock Up 12.0%

FSLY traded up $0.79 on Thursday, reaching $7.31. 6,226,879 shares of the company traded hands, compared to its average volume of 2,869,429. The company has a market cap of $1.06 billion, a price-to-earnings ratio of -6.69 and a beta of 1.19. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.50 and a quick ratio of 1.50. The stock's 50 day moving average price is $7.09 and its 200-day moving average price is $7.24. Fastly has a 52-week low of $4.65 and a 52-week high of $12.08.

Fastly (NYSE:FSLY - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.02. The company had revenue of $148.71 million during the quarter, compared to the consensus estimate of $144.86 million. Fastly had a negative net margin of 27.73% and a negative return on equity of 12.29%. The company's revenue for the quarter was up 12.3% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.07) earnings per share. On average, sell-side analysts expect that Fastly will post -0.78 EPS for the current fiscal year.

Insider Transactions at Fastly

In other Fastly news, CFO Ronald W. Kisling sold 12,000 shares of the stock in a transaction that occurred 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 transaction, 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CRO Scott R. Lovett sold 127,608 shares of the firm's stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $6.95, for a total value of $886,875.60. Following the completion of the sale, the executive directly owned 1,287,145 shares of the company's stock, valued at $8,945,657.75. The trade was a 9.02% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, 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.

Institutional Trading of Fastly

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FSLY. Alyeska Investment Group L.P. purchased a new position in Fastly during the fourth quarter valued at $35,334,000. Penserra Capital Management LLC increased its holdings in shares of Fastly by 83.1% during the first 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 in the last quarter. Marshall Wace LLP bought a new stake in Fastly in the 4th quarter worth about $7,618,000. Point72 Asset Management L.P. bought a new stake in Fastly in the 4th quarter worth about $7,088,000. Finally, Two Sigma Investments LP increased its holdings in Fastly by 179.3% in the 4th quarter. Two Sigma Investments LP now owns 1,101,329 shares of the company's stock worth $10,397,000 after buying an additional 707,053 shares in 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.

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