Fastly (NYSE:FSLY) Shares Down 5.6% - Here's What Happened

Key Points

• Fastly's stock price dropped 5.6% to $8.27, significantly below its previous closing price of $8.76, amidst lower trading volume.
• Wall Street analysts currently hold an average rating of "Hold" on Fastly, with a consensus price target of $8.69.
• Insiders have sold a total of 173,173 shares of Fastly stock in recent months, decreasing their holdings in the company.

Shares of Fastly, Inc. (NYSE:FSLY - Get Free Report) dropped 5.6% during trading on Tuesday . The stock traded as low as $8.32 and last traded at $8.27. Approximately 1,051,902 shares changed hands during trading, a decline of 63% from the average daily volume of 2,858,772 shares. The stock had previously closed at $8.76.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. KeyCorp raised shares of Fastly to a "sector weight" rating in a research report on Thursday, June 5th. Royal Bank Of Canada boosted their target price on shares of Fastly from $6.00 to $7.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 7th. Finally, Craig Hallum raised Fastly from a "hold" rating to a "buy" rating and set a $10.00 price target on the stock in a research report on Thursday, August 7th. One investment analyst has rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat.com, Fastly presently has an average rating of "Hold" and a consensus price target of $8.69.

Fastly Stock Performance

The firm has a fifty day moving average of $7.31 and a 200-day moving average of $6.93. The company has a quick ratio of 1.49, a current ratio of 1.49 and a debt-to-equity ratio of 0.16. The firm has a market cap of $1.27 billion, a P/E ratio of -8.36 and a beta of 1.24.

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

Insider Buying and Selling

In other news, CEO Charles Lacey Compton III sold 15,335 shares of the firm's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $6.88, for a total value of $105,504.80. Following the transaction, the chief executive officer directly owned 673,645 shares in the company, valued at $4,634,677.60. This trade represents a 2.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard Devon Daniels sold 18,248 shares of the company's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $7.61, for a total value of $138,867.28. Following the completion of the sale, the director owned 67,652 shares of the company's stock, valued at $514,831.72. This represents a 21.24% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 448,738 shares of company stock worth $3,562,780. Company insiders own 6.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Banque Transatlantique SA bought a new stake in Fastly in the first quarter valued at approximately $38,000. GAMMA Investing LLC increased its position in shares of Fastly by 451.7% in the 1st quarter. GAMMA Investing LLC now owns 7,261 shares of the company's stock valued at $46,000 after buying an additional 5,945 shares in the last quarter. Geneos Wealth Management Inc. acquired a new stake in Fastly during the 1st quarter worth $52,000. Acadian Asset Management LLC bought a new position in Fastly during the first quarter worth about $78,000. Finally, Oxford Asset Management LLP acquired a new position in Fastly in the second quarter valued at about $83,000. Institutional investors own 79.71% of the company's stock.

Fastly Company Profile

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.