Fastly (NYSE:FSLY) Shares Down 9.5% - Time to Sell?

Key Points

• Shares fell 9.5% intraday to $22.05 from $24.37 on Tuesday, with about 6.52 million shares traded (roughly 46% below average); the 50-day and 200-day moving averages are $21.82 and $14.01, respectively.
• Analyst coverage is mixed: the consensus rating is Hold with an average price target of $16.25, split among 3 Buys, 7 Holds and 1 Sell.
• Insiders have been net sellers recently—about 1.48 million shares sold (~$28.75 million) in the last three months (including sales by the CEO), while institutional investors own roughly 79.7% and insiders own 6.7% of the stock.

Fastly, Inc. (NYSE:FSLY - Get Free Report) shares were down 9.5% during mid-day trading on Tuesday . The stock traded as low as $21.13 and last traded at $22.0480. Approximately 6,524,599 shares were traded during trading, a decline of 46% from the average daily volume of 12,161,704 shares. The stock had previously closed at $24.37.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on FSLY. Royal Bank Of Canada lifted their target price on shares of Fastly from $12.00 to $20.00 and gave the stock a "sector perform" rating in a research note on Monday, March 2nd. DA Davidson set a $13.00 price target on shares of Fastly in a report on Thursday, February 12th. KeyCorp upgraded shares of Fastly from a "sector weight" rating to an "overweight" rating and set a $14.00 price objective for the company in a research note on Monday, December 15th. William Blair raised shares of Fastly from a "market perform" rating to an "outperform" rating in a report on Thursday, February 12th. Finally, Citigroup raised their price objective on shares of Fastly from $10.00 to $13.00 and gave the stock a "neutral" rating in a research note on Friday, February 13th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Fastly presently has an average rating of "Hold" and a consensus target price of $16.25.

Fastly Stock Down 12.7%

The company has a market cap of $3.23 billion, a price-to-earnings ratio of -22.27 and a beta of 0.62. The company has a current ratio of 1.46, a quick ratio of 1.46 and a debt-to-equity ratio of 0.16. The business has a fifty day moving average of $21.82 and a two-hundred day moving average of $14.01.

Insiders Place Their Bets

In other news, insider Scott R. Lovett sold 41,682 shares of Fastly stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $26.45, for a total transaction of $1,102,488.90. Following the transaction, the insider owned 1,503,878 shares in the company, valued at $39,777,573.10. The trade was a 2.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Charles Lacey Compton III sold 36,694 shares of the business's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $20.69, for a total transaction of $759,198.86. Following the transaction, the chief executive officer directly owned 1,212,778 shares in the company, valued at approximately $25,092,376.82. The trade was a 2.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,478,702 shares of company stock valued at $28,751,555 in the last three months. 6.70% of the stock is currently owned by insiders.

Institutional Trading of Fastly

A number of hedge funds and other institutional investors have recently made changes to their positions in FSLY. Kestra Advisory Services LLC lifted its holdings in Fastly by 8.4% in the fourth quarter. Kestra Advisory Services LLC now owns 11,970 shares of the company's stock valued at $122,000 after acquiring an additional 930 shares during the last quarter. Arizona State Retirement System raised its position in Fastly by 3.2% in the third quarter. Arizona State Retirement System now owns 40,705 shares of the company's stock valued at $348,000 after purchasing an additional 1,253 shares during the period. Parallax Volatility Advisers L.P. lifted its stake in shares of Fastly by 13.8% in the 3rd quarter. Parallax Volatility Advisers L.P. now owns 12,095 shares of the company's stock valued at $103,000 after purchasing an additional 1,465 shares during the last quarter. ProShare Advisors LLC grew its holdings in shares of Fastly by 10.1% during the 4th quarter. ProShare Advisors LLC now owns 26,553 shares of the company's stock worth $270,000 after purchasing an additional 2,435 shares during the period. Finally, 180 Wealth Advisors LLC increased its position in shares of Fastly by 3.7% during the 4th quarter. 180 Wealth Advisors LLC now owns 79,221 shares of the company's stock worth $806,000 after purchasing an additional 2,860 shares during the last quarter. 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.

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