Fastly (NASDAQ:FSLY) Stock Price Down 5.3% - What's Next?

Key Points

• Fastly shares fell 5.3% to about $23.27 in thin midday trading, while the stock’s consensus analyst rating remained “Hold” with an average price target of $25.33.
• Fastly exceeded quarterly expectations, reporting adjusted EPS of $0.15 versus $0.07 expected and revenue of $183.32 million versus $173.94 million forecast, although it remained unprofitable on a net-margin basis.
• Company insiders sold roughly 587,926 shares worth $14.9 million over the past three months, while institutional investors continued to hold a substantial 79.71% of Fastly’s outstanding stock.

Fastly, Inc. (NASDAQ:FSLY - Get Free Report) shares traded down 5.3% on Friday . The company traded as low as $23.60 and last traded at $23.2710. Approximately 721,993 shares were traded during mid-day trading, a decline of 92% from the average daily volume of 9,171,075 shares. The stock had previously closed at $24.57.

Analysts Set New Price Targets

Several equities research analysts have commented on FSLY shares. Freedom Capital upgraded Fastly to a "strong-buy" rating in a research note on Thursday, July 16th. Evercore restated an "outperform" rating on shares of Fastly in a report on Thursday, August 6th. Raymond James Financial reaffirmed an "outperform" rating and set a $29.00 price target on shares of Fastly in a research report on Thursday, August 6th. Canaccord Genuity Group assumed coverage on Fastly in a research report on Friday, July 17th. They issued a "buy" rating and a $27.00 price objective on the stock. Finally, KeyCorp restated an "overweight" rating and set a $30.00 price objective on shares of Fastly in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Fastly has an average rating of "Hold" and a consensus target price of $25.33.

Fastly Stock Down 3.9%

The company has a quick ratio of 3.36, a current ratio of 3.36 and a debt-to-equity ratio of 0.33. The firm has a market capitalization of $3.76 billion, a PE ratio of -44.45 and a beta of 0.36. The firm's 50 day moving average price is $23.02 and its two-hundred day moving average price is $22.43.

Fastly (NASDAQ:FSLY - Get Free Report) last posted its quarterly earnings data 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 net margin of 11.80% and a negative return on equity of 6.31%. The company had revenue of $183.32 million during the quarter, compared to analysts' expectations 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, research analysts forecast that Fastly, Inc. will post -0.29 EPS for the current fiscal year.

Insider Buying and Selling

In other Fastly news, CEO Charles Compton, III sold 50,392 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $24.93, for a total transaction of $1,256,272.56. Following the transaction, the chief executive officer directly owned 851,949 shares in the company, valued at $21,239,088.57. This represents a 5.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Artur Bergman sold 2,500 shares of the firm's stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $25.14, for a total transaction of $62,850.00. Following the transaction, the chief technology officer directly owned 1,597,206 shares of the company's stock, valued at approximately $40,153,758.84. This represents a 0.16% 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. Insiders have sold 587,926 shares of company stock valued at $14,915,391 in the last three months. Corporate insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Fastly

Large investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC acquired a new stake in Fastly during the second quarter valued at approximately $48,000. IFP Advisors Inc grew its position in shares of Fastly by 1,621.7% in the 2nd quarter. IFP Advisors Inc now owns 1,429 shares of the company's stock worth $26,000 after acquiring an additional 1,346 shares in the last quarter. Spark Investment Management LLC bought a new stake in shares of Fastly in the 2nd quarter valued at approximately $340,000. Nykredit A S bought a new stake in shares of Fastly in the 2nd quarter valued at approximately $77,000. Finally, AlphaGrep UK Ltd acquired a new stake in shares of Fastly during the 2nd quarter valued at approximately $366,000. Institutional investors own 79.71% of the company's stock.

About Fastly

Fastly, Inc is a cloud computing company that provides an edge cloud platform for delivering, securing and accelerating digital experiences. Its platform processes and serves applications, websites, APIs, streaming media and other internet content closer to end users, helping organizations improve performance, reliability and control.

Fastly's product portfolio includes content delivery and application performance services, application programming interface (API) security, web application and bot protection, distributed denial-of-service (DDoS) mitigation, and edge compute capabilities.

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