Fastly (NYSE:FSLY) Stock Price Up 6.9% - Should You Buy?

Key Points

• Fastly shares jumped 6.9% on Tuesday to about $27.17 intraday, though trading volume was roughly 65% below the stock's average session volume.
• Wall Street's consensus is a "Hold" with an average price target of $16.25; analyst opinions are mixed (3 Buys, 7 Holds, 1 Sell) despite several recent target upgrades.
• Company insiders have been net sellers—including the CEO and CTO—with 1,474,553 shares sold (~$29.2M) in the last 90 days, and insiders now own about 6.7% of the stock.

Fastly, Inc. (NYSE:FSLY - Get Free Report) shot up 6.9% on Tuesday . The stock traded as high as $26.85 and last traded at $27.1680. 4,315,360 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 12,248,439 shares. The stock had previously closed at $25.41.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on FSLY. Piper Sandler reaffirmed a "neutral" rating and issued a $14.00 price target (up from $11.00) on shares of Fastly in a research report on Thursday, February 12th. Craig Hallum cut shares of Fastly from a "buy" rating to a "hold" rating and set a $24.00 price target on the stock. in a research report on Tuesday, April 14th. Royal Bank Of Canada raised their price target on shares of Fastly from $12.00 to $20.00 and gave the company a "sector perform" rating in a research report on Monday, March 2nd. Citigroup raised their price target on shares of Fastly from $10.00 to $13.00 and gave the company a "neutral" rating in a research report on Friday, February 13th. Finally, William Blair raised shares of Fastly from a "market perform" rating to an "outperform" rating in a research report on Thursday, February 12th. Three analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Fastly presently has a consensus rating of "Hold" and an average price target of $16.25.

Fastly Stock Performance

The company's 50-day simple moving average is $23.36 and its 200 day simple moving average is $14.55. 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 stock has a market cap of $4.00 billion, a P/E ratio of -27.51 and a beta of 0.62.

Insiders Place Their Bets

In other news, CEO Charles Lacey Compton III sold 73,206 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $20.94, for a total transaction of $1,532,933.64. Following the completion of the sale, the chief executive officer owned 875,831 shares in the company, valued at $18,339,901.14. This trade represents a 7.71% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Artur Bergman sold 275,234 shares of the firm's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $20.56, for a total transaction of $5,658,811.04. Following the sale, the chief technology officer owned 1,909,901 shares of the company's stock, valued at approximately $39,267,564.56. The trade was a 12.60% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,474,553 shares of company stock valued at $29,185,297 in the last 90 days. 6.70% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Fastly

Several large investors have recently modified their holdings of FSLY. Divisadero Street Capital Management LP purchased a new position in Fastly in the 3rd quarter valued at approximately $21,174,000. Vanguard Group Inc. grew its stake in Fastly by 3.4% in the 3rd quarter. Vanguard Group Inc. now owns 16,666,672 shares of the company's stock valued at $142,500,000 after buying an additional 554,909 shares in the last quarter. Knights of Columbus Asset Advisors LLC purchased a new position in Fastly in the 3rd quarter valued at approximately $1,002,000. Picton Mahoney Asset Management purchased a new position in Fastly in the 3rd quarter valued at approximately $781,000. Finally, Hussman Strategic Advisors Inc. grew its stake in Fastly by 100.0% in the 3rd quarter. Hussman Strategic Advisors Inc. now owns 210,000 shares of the company's stock valued at $1,796,000 after buying an additional 105,000 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 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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