Fastly (NASDAQ:FSLY) Shares Gap Up - Here's Why

Key Points

• Fastly shares jumped 14.3%, opening at $26.90 after closing at $25.29 and later trading near $28.02. The stock moved above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: Oppenheimer upgraded Fastly to “outperform” with a $35 price target, while the broader consensus remains “Hold” with a $27.42 target.
• Fastly beat quarterly expectations, reporting $0.15 in EPS versus a $0.07 estimate and revenue of $183.32 million versus $173.94 million. However, insiders sold more than 1.24 million shares worth approximately $33.3 million over the past 90 days.

Fastly, Inc. (NASDAQ:FSLY - Get Free Report)'s stock price gapped up prior to trading on Friday. The stock had previously closed at $25.29, but opened at $26.90. Fastly shares last traded at $28.0210, with a volume of 1,656,295 shares traded.

Analyst Ratings Changes

FSLY has been the subject of several research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Fastly in a research report on Friday, August 7th. Evercore restated an "outperform" rating on shares of Fastly in a research report on Wednesday, September 23rd. Oppenheimer raised shares of Fastly from a "market perform" rating to an "outperform" rating and set a $35.00 target price for the company in a report on Friday. Canaccord Genuity Group initiated coverage on shares of Fastly in a research report on Friday, July 17th. They issued a "buy" rating and a $27.00 price target on the stock. Finally, Raymond James Financial reiterated an "outperform" rating on shares of Fastly in a research note on Wednesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $27.42.

Fastly Stock Up 14.3%

The business has a 50-day moving average of $24.68 and a 200 day moving average of $22.73. The company has a market capitalization of $4.61 billion, a PE ratio of -54.56 and a beta of 0.31. The company has a debt-to-equity ratio of 0.33, a current ratio of 3.36 and a quick ratio of 3.36.

Fastly (NASDAQ:FSLY - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.15 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.07 by $0.08. The business had revenue of $183.32 million for the quarter, compared to the consensus estimate 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. Equities research analysts predict that Fastly, Inc. will post -0.29 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Scott R. Lovett sold 41,815 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $24.64, for a total value of $1,030,321.60. Following the completion of the transaction, the insider owned 1,281,583 shares of the company's stock, valued at approximately $31,578,205.12. This trade represents a 3.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 379,602 shares of the business's stock in a transaction that occurred on Wednesday, September 23rd. The stock was sold at an average price of $30.16, for a total value of $11,448,796.32. Following the sale, the chief technology officer directly owned 1,138,358 shares in the company, valued at $34,332,877.28. The trade was a 25.01% 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. Over the last ninety days, insiders sold 1,243,371 shares of company stock worth $33,335,165. Insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Fastly

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

Fastly Company Profile

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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