Fastly Sees Unusually High Options Volume (NYSE:FSLY)

Key Points

• Unusually high options activity: Investors purchased 43,179 call options on FSLY — a 71% increase versus average daily call volume, signaling elevated bullish interest.
• Sharp stock move on heavy volume: FSLY jumped 18.0% to $32.45 on ~10.6M shares traded, giving the company a ~$5.07B market cap and putting it near its 52-week high.
• Insider selling and cautious analyst view: The CTO and CEO sold large blocks as insiders sold 1,374,553 shares (~$28.2M) over 90 days, while analysts maintain a consensus "Hold" with a $16.25 price target.

Fastly, Inc. (NYSE:FSLY - Get Free Report) saw unusually large options trading activity on Tuesday. Investors purchased 43,179 call options on the stock. This represents an increase of 71% compared to the average daily volume of 25,291 call options.

Fastly Stock Up 18.0%

FSLY stock traded up $4.96 on Tuesday, reaching $32.45. 10,611,435 shares of the company traded hands, compared to its average volume of 11,770,739. The firm has a fifty day simple moving average of $24.90 and a 200-day simple moving average of $15.50. The company has a market cap of $5.07 billion, a P/E ratio of -33.64 and a beta of 0.49. Fastly has a one year low of $5.63 and a one year high of $34.82. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.46 and a quick ratio of 1.46.

Insider Buying and Selling

In other news, CTO Artur Bergman sold 275,234 shares of the company's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $20.56, for a total value of $5,658,811.04. Following the completion of the transaction, the chief technology officer directly owned 1,909,901 shares in the company, valued at approximately $39,267,564.56. This represents a 12.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Charles Lacey Compton III sold 73,206 shares of the firm's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $20.94, for a total value of $1,532,933.64. Following the transaction, the chief executive officer directly owned 875,831 shares in the company, valued at approximately $18,339,901.14. This represents a 7.71% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 1,374,553 shares of company stock worth $28,180,823. Corporate insiders own 6.70% of the company's stock.

Hedge Funds Weigh In On Fastly

Hedge funds and other institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd bought a new position in shares of Fastly during the 4th quarter valued at approximately $41,000. Align Financial LLC bought a new stake in Fastly during the 4th quarter worth approximately $41,000. Byrne Asset Management LLC purchased a new position in Fastly during the third quarter valued at approximately $43,000. Sound Income Strategies LLC bought a new position in shares of Fastly in the first quarter worth approximately $44,000. Finally, Quarry LP bought a new position in shares of Fastly in the third quarter worth approximately $49,000. 79.71% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have issued reports on FSLY. Citigroup upped 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. Evercore started coverage on shares of Fastly in a research report on Tuesday, April 14th. They issued an "outperform" rating and a $24.00 price objective on the stock. William Blair upgraded shares of Fastly from a "market perform" rating to an "outperform" rating in a report on Thursday, February 12th. Royal Bank Of Canada lifted their price objective on Fastly from $12.00 to $20.00 and gave the stock a "sector perform" rating in a research report on Monday, March 2nd. Finally, Craig Hallum downgraded Fastly from a "buy" rating to a "hold" rating and set a $24.00 target price for the company. in a report on Tuesday, April 14th. 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 company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $16.25.

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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