Fastly (NASDAQ:FSLY) Stock Falls 12.1% - Here's Why

Key Points

• Fastly shares fell 12.1% to about $22.53, with trading volume roughly 79% below the average session volume.
• Analyst sentiment remains mixed: the stock has an average rating of “Hold” and an average price target of $27.42, despite several recent buy or outperform calls.
• Fastly exceeded recent quarterly earnings and revenue estimates, but remains unprofitable; meanwhile, insiders sold approximately 1.35 million shares worth $36.1 million over the past three months.

Fastly, Inc. (NASDAQ:FSLY - Get Free Report)'s share price was down 12.1% during trading on Friday. The company traded as low as $22.59 and last traded at $22.5280. Approximately 1,844,439 shares changed hands during trading, a decline of 79% from the average session volume of 8,891,315 shares. The stock had previously closed at $25.64.

Analyst Ratings Changes

Several equities analysts recently weighed in on FSLY shares. Freedom Capital upgraded shares of Fastly to a "strong-buy" rating in a report on Thursday, July 16th. Freedom Broker lifted their price objective on shares of Fastly from $32.00 to $37.00 and gave the company a "buy" rating in a research note on Wednesday, September 23rd. Canaccord Genuity Group began coverage on shares of Fastly in a report on Friday, July 17th. They issued a "buy" rating and a $27.00 price objective on the stock. Evercore reaffirmed an "outperform" rating on shares of Fastly in a report on Wednesday, September 23rd. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and issued a $25.00 price objective on shares of Fastly in a research note on Wednesday, September 23rd. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $27.42.

Fastly Trading Down 11.9%

The company's 50-day moving average price is $24.46 and its 200-day moving average price is $21.21. The firm has a market cap of $3.60 billion, a price-to-earnings ratio of -42.62 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 released its quarterly earnings results on Wednesday, August 5th. The company reported $0.15 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.08. The firm had revenue of $183.32 million during the quarter, compared to the consensus estimate 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. Equities analysts expect that Fastly, Inc. will post -0.29 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Richard Wong sold 148,015 shares of Fastly stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $28.61, for a total transaction of $4,234,709.15. Following the transaction, the chief financial officer 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 sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Scott R. Lovett sold 41,815 shares of Fastly stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $24.64, for a total value of $1,030,321.60. Following the transaction, the insider owned 1,281,583 shares in the company, valued at approximately $31,578,205.12. The trade was 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 three months, insiders sold 1,349,841 shares of company stock worth $36,078,321. 4.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Signaturefd LLC lifted its holdings in Fastly by 98,700.0% in the third quarter. Signaturefd LLC now owns 988 shares of the company's stock valued at $25,000 after acquiring an additional 987 shares during the last quarter. IFP Advisors Inc grew its holdings in shares of Fastly by 1,621.7% during the 2nd quarter. IFP Advisors Inc now owns 1,429 shares of the company's stock worth $26,000 after purchasing an additional 1,346 shares during the period. GAMMA Investing LLC increased its position in shares of Fastly by 38.4% during the 3rd quarter. GAMMA Investing LLC now owns 1,510 shares of the company's stock worth $39,000 after purchasing an additional 419 shares during the last quarter. PNC Financial Services Group Inc. increased its position in shares of Fastly by 84.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 1,381 shares of the company's stock worth $40,000 after purchasing an additional 633 shares during the last quarter. Finally, Sound Income Strategies LLC acquired a new stake in shares of Fastly during the 1st quarter worth about $44,000. 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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