Fastly (NASDAQ:FSLY) Shares Down 7.4% - Should You Sell?

Key Points

• Fastly shares fell 7.4% to about $27.14 in mid-day trading, on volume substantially below the stock’s average session volume.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $27.42, although Oppenheimer upgraded the stock to “Outperform” with a $35 target.
• Fastly exceeded quarterly earnings and revenue expectations, but remains unprofitable; insiders sold more than 1.24 million shares worth approximately $33.3 million over the last quarter.

Fastly, Inc. (NASDAQ:FSLY - Get Free Report)'s share price fell 7.4% during mid-day trading on Monday. The company traded as low as $27.40 and last traded at $27.1440. 1,118,331 shares were traded during mid-day trading, a decline of 88% from the average session volume of 9,148,887 shares. The stock had previously closed at $29.30.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Evercore reaffirmed an "outperform" rating on shares of Fastly in a research note on Wednesday, September 23rd. DA Davidson boosted their price objective on shares of Fastly from $21.00 to $23.00 and gave the company a "neutral" rating in a research note on Wednesday, September 23rd. Royal Bank Of Canada restated a "sector perform" rating and set a $25.00 price objective on shares of Fastly in a report on Wednesday, September 23rd. Oppenheimer raised Fastly from a "market perform" rating to an "outperform" rating and set a $35.00 target price on the stock in a research report on Friday. Finally, Piper Sandler lifted their target price on Fastly from $27.00 to $28.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. 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 company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $27.42.

Fastly Trading Down 8.5%

The firm's 50 day simple moving average is $24.81 and its 200-day simple moving average is $22.74. The company has a market capitalization of $4.27 billion, a PE ratio of -50.48 and a beta of 0.31. 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, beating the consensus estimate of $0.07 by $0.08. Fastly had a negative net margin of 11.80% and a negative return on equity of 6.31%. The business had revenue of $183.32 million for 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, equities research analysts anticipate that Fastly, Inc. will post -0.29 EPS for the current year.

Insider Activity

In related news, CTO Artur Bergman sold 3,961 shares of the business's stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $25.26, for a total transaction of $100,054.86. Following the transaction, the chief technology officer directly owned 1,101,319 shares of the company's stock, valued at approximately $27,819,317.94. The trade was a 0.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Scott R. Lovett sold 41,815 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $24.64, for a total transaction of $1,030,321.60. Following the completion of the sale, the insider directly owned 1,281,583 shares of the company's stock, valued at $31,578,205.12. This trade represents a 3.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 1,243,371 shares of company stock worth $33,335,165. 4.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Fastly

Several large investors have recently modified their holdings of the business. IFP Advisors Inc increased its position in shares of Fastly by 1,621.7% during the second quarter. IFP Advisors Inc now owns 1,429 shares of the company's stock worth $26,000 after acquiring an additional 1,346 shares during the last quarter. GAMMA Investing LLC boosted its holdings in Fastly by 38.4% in the third quarter. GAMMA Investing LLC now owns 1,510 shares of the company's stock valued at $39,000 after purchasing an additional 419 shares during the last quarter. PNC Financial Services Group Inc. boosted its holdings in Fastly by 84.6% in the first quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company's stock valued at $40,000 after purchasing an additional 633 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in Fastly during the 4th quarter valued at approximately $41,000. Finally, Sound Income Strategies LLC acquired a new stake in Fastly during the 1st quarter valued at approximately $44,000. 79.71% of the stock is currently owned by institutional investors and hedge funds.

About Fastly

Fastly, Inc NASDAQ: FSLY is a technology company that provides an edge cloud platform designed to help businesses deliver, secure and operate digital applications and content closer to end users. Its platform supports websites, mobile applications, APIs, streaming media and other internet services by processing data at the edge of the network, helping organizations improve performance, scalability and reliability.

Fastly's products and services include content delivery, edge computing, application programming interface (API) services, cloud security and observability tools.

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