Fastly (NYSE:FSLY) Stock Price Down 6.2% - Should You Sell?

Key Points

• Fastly (FSLY) shares fell 6.2% to about $24.92 on Wednesday, with volume of ~1.5M shares — roughly an 88% decline versus its average daily volume of 12.17M.
• Analysts are mixed with a consensus rating of Hold and a consensus price target of $16.25; recent notes vary (e.g., RBC $20, Evercore $24) and the analyst split is 3 Buys, 7 Holds and 1 Sell.
• Insiders have sold about 1,474,553 shares (~$29.19M) in the last 90 days (insiders own 6.7%), while institutional investors hold roughly 79.7% of the stock.

Fastly, Inc. (NYSE:FSLY - Get Free Report)'s stock price dropped 6.2% during trading on Wednesday . The company traded as low as $25.34 and last traded at $24.9170. Approximately 1,495,406 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 12,170,738 shares. The stock had previously closed at $26.56.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Citigroup upped their price objective on Fastly from $10.00 to $13.00 and gave the stock a "neutral" rating in a research note on Friday, February 13th. Royal Bank Of Canada upped their price objective on 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 objective on Fastly in a research note on Thursday, February 12th. Piper Sandler restated a "neutral" rating and issued a $14.00 price objective (up from $11.00) on shares of Fastly in a research note on Thursday, February 12th. Finally, Evercore assumed coverage on Fastly in a research note on Tuesday, April 14th. They issued an "outperform" rating and a $24.00 price objective for the company. Three equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Fastly has an average rating of "Hold" and a consensus target price of $16.25.

Fastly Stock Performance

The firm has a market cap of $3.80 billion, a PE ratio of -26.08 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 firm's 50 day simple moving average is $23.71 and its 200 day simple moving average is $14.67.

Insiders Place Their Bets

In other Fastly news, CEO Charles Lacey Compton III sold 7,059 shares of the business's stock in a transaction on Friday, April 17th. The shares were sold at an average price of $24.57, for a total value of $173,439.63. Following the sale, the chief executive officer owned 1,133,895 shares in the company, valued at $27,859,800.15. The trade was a 0.62% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Scott R. Lovett sold 41,682 shares of the business's stock in a transaction dated 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 completion of the sale, the insider owned 1,503,878 shares in the company, valued at approximately $39,777,573.10. This trade represents a 2.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,474,553 shares of company stock worth $29,185,297 in the last 90 days. 6.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Fastly

A number of large investors have recently made changes to their positions in the business. Kestra Advisory Services LLC increased its holdings in shares of Fastly by 8.4% in the 4th quarter. Kestra Advisory Services LLC now owns 11,970 shares of the company's stock worth $122,000 after buying an additional 930 shares during the last quarter. Arizona State Retirement System grew its holdings in Fastly by 3.2% during the 3rd 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 last quarter. Parallax Volatility Advisers L.P. grew its holdings in Fastly by 13.8% during 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 Fastly by 10.1% during the 4th quarter. ProShare Advisors LLC now owns 26,553 shares of the company's stock valued at $270,000 after purchasing an additional 2,435 shares during the last quarter. Finally, 180 Wealth Advisors LLC grew its holdings in Fastly by 3.7% during the 4th quarter. 180 Wealth Advisors LLC now owns 79,221 shares of the company's stock valued at $806,000 after purchasing an additional 2,860 shares during the last quarter. 79.71% of the stock is currently owned by institutional investors.

Fastly Company Profile

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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