Fastly (NASDAQ:FSLY) Shares Down 3.5% - Time to Sell?

Key Points

• Fastly shares fell 3.5% to about $22.19 on sharply lower-than-average trading volume, while the stock remained below its 50-day moving average.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $27.42; ratings range from Strong Buy to Sell.
• Fastly exceeded quarterly earnings and revenue estimates, but remains unprofitable. Insiders sold more than $34 million of stock over the past 90 days, primarily through pre-arranged trading plans.

Shares of Fastly, Inc. (NASDAQ:FSLY - Get Free Report) dropped 3.5% on Tuesday. The stock traded as low as $21.55 and last traded at $22.1860. 1,225,099 shares were traded during trading, a decline of 86% from the average session volume of 9,063,941 shares. The stock had previously closed at $22.99.

Analyst Ratings Changes

FSLY has been the topic of several recent research reports. Piper Sandler raised their price target on Fastly from $27.00 to $28.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. KeyCorp reiterated an "overweight" rating and issued a $30.00 price objective on shares of Fastly in a research report on Friday, September 18th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Fastly in a research report on Friday, August 7th. Bank of America increased their price objective on Fastly from $20.00 to $22.00 and gave the company an "underperform" rating in a research note on Wednesday, September 23rd. Finally, Royal Bank Of Canada reissued a "sector perform" rating and set a $25.00 price objective on shares of Fastly in a research note on Wednesday, September 23rd. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Fastly has an average rating of "Hold" and an average price target of $27.42.

Fastly Price Performance

The stock has a market cap of $3.53 billion, a PE ratio of -41.76 and a beta of 0.31. The business's 50-day simple moving average is $24.84 and its 200-day simple moving average is $22.60. The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.33.

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

Insiders Place Their Bets

In related news, insider Scott R. Lovett sold 41,815 shares of the company's stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $24.64, for a total transaction of $1,030,321.60. Following the completion of the transaction, the insider owned 1,281,583 shares in the company, valued at $31,578,205.12. This represents a 3.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 37,039 shares of the company's stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $26.81, for a total value of $993,015.59. Following the transaction, the chief technology officer owned 1,061,278 shares of the company's stock, valued at approximately $28,452,863.18. This represents a 3.37% decrease in their position. 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 sold 1,283,412 shares of company stock worth $34,418,450. 4.20% of the stock is currently owned by company insiders.

Institutional Trading of Fastly

Several large investors have recently added to or reduced their stakes in the stock. Perpetual Ltd bought a new stake in shares of Fastly during the third quarter valued at approximately $240,000. GK Wealth Management LLC purchased a new stake in Fastly in the third quarter worth $70,000. GAMMA Investing LLC raised its holdings in Fastly by 38.4% in the third quarter. GAMMA Investing LLC now owns 1,510 shares of the company's stock worth $39,000 after purchasing an additional 419 shares in the last quarter. CoreCap Advisors LLC bought a new position in Fastly in the third quarter worth $108,000. Finally, Cim Investment Management Inc. raised its holdings in Fastly by 7.4% in the second quarter. Cim Investment Management Inc. now owns 10,816 shares of the company's stock worth $199,000 after purchasing an additional 747 shares in the last quarter. Institutional investors own 79.71% of the company's stock.

About Fastly

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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