Fastly (NASDAQ:FSLY) Share Price Breaks Above Fifty Day Moving Average - Here's Why

Key Points

• Fastly shares rose 4.9%, trading as high as $26.03 and breaking above the 50-day moving average of $24.53. The stock’s 200-day moving average is $20.88.
• Analyst sentiment remains mixed, with a consensus rating of “Hold” and an average price target of $27.42; ratings range from Strong Buy to Sell.
• Fastly exceeded quarterly expectations, reporting $0.15 in EPS versus the $0.07 consensus and revenue of $183.32 million versus $173.94 million expected. However, insiders sold more than 1.3 million shares worth approximately $34.9 million over the past 90 days.

Fastly, Inc. (NASDAQ:FSLY - Get Free Report) passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $24.53 and traded as high as $26.03. Fastly shares last traded at $25.61, with a volume of 4,930,475 shares changing hands.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on FSLY shares. Raymond James Financial reaffirmed an "outperform" rating on shares of Fastly in a research note on Wednesday, September 23rd. Royal Bank Of Canada reissued a "sector perform" rating and issued a $25.00 price objective on shares of Fastly in a research note on Wednesday, September 23rd. Piper Sandler increased their price objective on Fastly from $27.00 to $28.00 and gave the company a "neutral" rating in a research note on Thursday, August 6th. Bank of America raised their price objective on Fastly from $20.00 to $22.00 and gave the company an "underperform" rating in a report on Wednesday, September 23rd. Finally, Evercore reaffirmed an "outperform" rating on shares of Fastly in a report on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $27.42.

Fastly Trading Up 4.9%

The firm has a market capitalization of $4.08 billion, a price-to-earnings ratio of -48.32 and a beta of 0.31. The company has a fifty day moving average price of $24.53 and a two-hundred day moving average price of $20.88. The company has a current ratio of 3.36, a quick ratio of 3.36 and a debt-to-equity ratio of 0.33.

Fastly (NASDAQ:FSLY - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.07 by $0.08. The business had revenue of $183.32 million during the quarter, compared to analyst estimates of $173.94 million. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%. Fastly has set its FY 2026 guidance at 0.500-0.540 EPS and its Q3 2026 guidance at 0.110-0.130 EPS. As a group, research analysts forecast that Fastly, Inc. will post -0.29 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Richard Wong sold 148,015 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $28.61, for a total transaction of $4,234,709.15. Following the completion of the sale, the chief financial officer directly owned 1,091,286 shares in the company, valued at approximately $31,221,692.46. This trade represents a 11.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Charles Compton, III sold 55,579 shares of Fastly stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $21.39, for a total transaction of $1,188,834.81. Following the transaction, the chief executive officer directly owned 914,235 shares in the company, valued at $19,555,486.65. This trade represents a 5.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,303,861 shares of company stock worth $34,911,221. Insiders own 4.20% of the company's stock.

Institutional Trading of Fastly

Hedge funds have recently made changes to their positions in the company. Bank of America Corp DE grew its position in Fastly by 120.0% in the first quarter. Bank of America Corp DE now owns 1,269,369 shares of the company's stock worth $36,888,000 after acquiring an additional 692,459 shares during the period. Convergence Investment Partners LLC purchased a new stake in Fastly in the first quarter valued at $1,951,000. Range Financial Group LLC purchased a new stake in Fastly in the first quarter valued at $1,667,000. Castleark Management LLC acquired a new position in shares of Fastly in the 1st quarter valued at $5,164,000. Finally, Wellington Management Group LLP acquired a new position in shares of Fastly in the 2nd quarter valued at $8,696,000. Hedge funds and other institutional investors own 79.71% of the company's stock.

Fastly Company Profile

Fastly, Inc is a technology company that provides an edge cloud platform designed to help businesses deliver, secure, and optimize digital applications and content. Its platform processes data and applications closer to end users, supporting faster performance, improved reliability, and greater control over internet-based services.

Fastly's products and services include content delivery, application programming interface (API) acceleration, edge computing, application and API security, bot management, distributed denial-of-service protection, and observability tools.

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