Fastly (NYSE:FSLY) Stock Price Up 6.1% - Here's Why

Key Points

• Fastly's stock price increased by 6.1% to $7.51, despite a significant drop in trading volume that fell by 65% from its average.
• Recent analyst ratings show a mix of upgrades and downgrades, with the average target price for Fastly now at $8.69, and only one analyst giving it a "Buy" rating.
• Fastly reported revenue of $148.71 million for the latest quarter, exceeding estimates, but posted a net margin of -25.85% and a negative return on equity.

Shares of Fastly, Inc. (NYSE:FSLY - Get Free Report) shot up 6.1% on Tuesday . The stock traded as high as $7.52 and last traded at $7.51. 1,006,312 shares changed hands during trading, a decline of 65% from the average session volume of 2,878,778 shares. The stock had previously closed at $7.08.

Analysts Set New Price Targets

Several brokerages recently weighed in on FSLY. Piper Sandler boosted their target price on Fastly from $6.00 to $7.00 and gave the stock a "neutral" rating in a research note 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 note on Thursday, May 8th. KeyCorp upgraded Fastly to a "sector weight" rating in a research note on Thursday, June 5th. Craig Hallum upgraded Fastly from a "hold" rating to a "buy" rating and set a $10.00 target price on the stock in a research note on Thursday, August 7th. Finally, Royal Bank Of Canada boosted their price target on Fastly from $6.00 to $7.00 and gave the company a "sector perform" rating in a research note on Thursday, August 7th. One analyst has rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, Fastly currently has a consensus rating of "Hold" and an average price target of $8.69.

Fastly Trading Up 3.7%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.49 and a current ratio of 1.49. The company has a 50 day simple moving average of $6.97 and a two-hundred day simple moving average of $6.96. The firm has a market cap of $1.10 billion, a PE ratio of -7.28 and a beta of 1.19.

Fastly (NYSE:FSLY - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.02. The business had revenue of $148.71 million for the quarter, compared to the consensus estimate of $144.86 million. Fastly had a negative return on equity of 11.98% and a negative net margin of 25.85%.The company's quarterly revenue was up 12.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.07) EPS. Analysts expect that Fastly, Inc. will post -0.78 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CFO Ronald W. Kisling sold 12,000 shares of the business's stock in a transaction dated Monday, June 2nd. The stock was sold at an average price of $7.41, for a total value of $88,920.00. Following the completion of the transaction, the chief financial officer owned 635,053 shares of the company's stock, valued at $4,705,742.73. The trade was a 1.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Charles Lacey Compton III sold 15,335 shares of the business's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $6.88, for a total value of $105,504.80. Following the completion of the transaction, the chief executive officer directly owned 673,645 shares of the company's stock, valued at approximately $4,634,677.60. This trade represents a 2.23% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 217,637 shares of company stock worth $1,524,719. Corporate insiders own 6.70% of the company's stock.

Hedge Funds Weigh In On Fastly

Several institutional investors and hedge funds have recently modified their holdings of FSLY. Raymond James Financial Inc. acquired a new position in shares of Fastly in the 4th quarter valued at about $3,717,000. Mariner LLC raised its holdings in Fastly by 18.0% in the 4th quarter. Mariner LLC now owns 22,868 shares of the company's stock worth $216,000 after purchasing an additional 3,487 shares during the period. Canada Pension Plan Investment Board acquired a new position in Fastly in the 4th quarter worth about $82,000. Dimensional Fund Advisors LP raised its holdings in Fastly by 0.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 3,098,509 shares of the company's stock worth $29,250,000 after purchasing an additional 12,974 shares during the period. Finally, MetLife Investment Management LLC raised its holdings in Fastly by 5.9% in the 4th quarter. MetLife Investment Management LLC now owns 78,889 shares of the company's stock worth $745,000 after purchasing an additional 4,360 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 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.