Fastly (NASDAQ:FSLY) Shares Down 5.4% - Time to Sell?

Key Points

• Fastly shares fell 5.4% to $21.55 in mid-day trading, with volume significantly below its average. The stock is trading near its 50-day and 200-day moving averages.
• Analysts remain mixed, with a consensus “Hold” rating and a $25.33 price target; recent firms raised targets as high as $30.00. Fastly nevertheless beat quarterly expectations, reporting $0.15 EPS versus $0.07 expected and revenue of $183.32 million versus $173.94 million estimated.
• Insiders sold 441,087 shares worth about $11.2 million over the past three months, while institutional investors own a substantial 79.71% of the stock.

Fastly, Inc. (NASDAQ:FSLY - Get Free Report) was down 5.4% during mid-day trading on Tuesday . The stock traded as low as $21.47 and last traded at $21.55. Approximately 1,220,293 shares changed hands during mid-day trading, a decline of 87% from the average daily volume of 9,441,716 shares. The stock had previously closed at $22.79.

Analyst Ratings Changes

A number of research analysts have recently commented on FSLY shares. Canaccord Genuity Group began coverage on Fastly in a research note on Friday, July 17th. They set a "buy" rating and a $27.00 target price on the stock. KeyCorp boosted their price objective on Fastly from $27.00 to $30.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Royal Bank Of Canada upped their price objective on Fastly from $22.00 to $28.00 and gave the company a "sector perform" rating in a research report on Thursday, August 6th. Freedom Capital upgraded Fastly to a "strong-buy" rating in a research note on Thursday, July 16th. Finally, Citigroup lifted their target price on Fastly from $13.00 to $25.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Fastly currently has a consensus rating of "Hold" and a consensus target price of $25.33.

Fastly Stock Performance

The firm has a 50 day moving average of $21.89 and a 200-day moving average of $21.96. The company has a market cap of $3.38 billion, a P/E ratio of -40.00 and a beta of 0.34. 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 issued its earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share for the quarter, beating analysts' consensus estimates of $0.07 by $0.08. Fastly had a negative return on equity of 6.31% and a negative net margin of 11.80%.The business had revenue of $183.32 million during the quarter, compared to analyst estimates of $173.94 million. 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, sell-side analysts anticipate that Fastly, Inc. will post -0.29 EPS for the current fiscal year.

Insider Buying and Selling at Fastly

In other Fastly news, CEO Charles Lacey Compton III sold 34,552 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $28.60, for a total transaction of $988,187.20. Following the completion of the sale, the chief executive officer directly owned 996,040 shares of the company's stock, valued at approximately $28,486,744. This represents a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 32,387 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $28.60, for a total transaction of $926,268.20. Following the completion of the sale, the chief technology officer owned 2,005,191 shares of the company's stock, valued at approximately $57,348,462.60. This trade represents a 1.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 441,087 shares of company stock valued at $11,164,598. 4.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Fastly

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of Fastly by 1.9% in the fourth quarter. Vanguard Group Inc. now owns 16,976,906 shares of the company's stock worth $172,825,000 after buying an additional 310,234 shares during the last quarter. Morgan Stanley raised its stake in shares of Fastly by 14.7% in the fourth quarter. Morgan Stanley now owns 8,339,234 shares of the company's stock worth $84,893,000 after purchasing an additional 1,071,222 shares during the last quarter. First Trust Advisors LP lifted its holdings in shares of Fastly by 100.5% during the first quarter. First Trust Advisors LP now owns 7,031,952 shares of the company's stock worth $204,349,000 after purchasing an additional 3,524,763 shares during the period. Alyeska Investment Group L.P. increased its holdings in Fastly by 2,795.2% in the 4th quarter. Alyeska Investment Group L.P. now owns 4,789,185 shares of the company's stock worth $48,754,000 after buying an additional 4,623,767 shares during the period. Finally, Dimensional Fund Advisors LP raised its position in Fastly by 2.9% during the 3rd quarter. Dimensional Fund Advisors LP now owns 4,137,808 shares of the company's stock worth $35,380,000 after buying an additional 117,213 shares during the last quarter. 79.71% of the stock is owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source