Fastly (NYSE:FSLY) Shares Down 6.4% – Should You Sell?

Fastly, Inc. (NYSE:FSLY)’s stock price fell 6.4% on Friday . The company traded as low as $8.79 and last traded at $8.82. 461,136 shares traded hands during mid-day trading, a decline of 77% from the average session volume of 2,043,911 shares. The stock had previously closed at $9.42.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Royal Bank of Canada upped their target price on shares of Fastly from $7.00 to $10.00 and gave the company a “sector perform” rating in a research note on Friday, January 3rd. Robert W. Baird increased their price target on Fastly from $7.00 to $8.00 and gave the stock a “neutral” rating in a report on Thursday, November 7th. Craig Hallum increased their target price on Fastly from $6.00 to $8.00 and gave the stock a “hold” rating in a research note on Thursday, November 7th. Piper Sandler increased their price objective on shares of Fastly from $8.00 to $10.00 and gave the stock a “neutral” rating in a research report on Tuesday, December 3rd. Finally, Oppenheimer upgraded Fastly from a “market perform” rating to an “outperform” rating and set a $12.00 target price for the company in a report on Monday, December 2nd. One equities research analyst has rated the stock with a sell rating, eight have issued a hold rating and one has given a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $8.85.

Fastly Stock Performance

The stock has a market capitalization of $1.27 billion, a P/E ratio of -8.28 and a beta of 1.24. The stock’s 50-day simple moving average is $9.00 and its 200 day simple moving average is $7.73. The company has a debt-to-equity ratio of 0.36, a current ratio of 3.97 and a quick ratio of 3.97.

Fastly (NYSE:FSLY) last posted its earnings results on Wednesday, November 6th. The company reported $0.02 EPS for the quarter, beating the consensus estimate of ($0.06) by $0.08. Fastly had a negative return on equity of 13.24% and a negative net margin of 27.47%. The company had revenue of $137.21 million for the quarter, compared to the consensus estimate of $131.86 million. During the same quarter in the prior year, the business earned ($0.33) earnings per share. The firm’s revenue for the quarter was up 7.3% on a year-over-year basis. Research analysts expect that Fastly, Inc. will post -0.86 EPS for the current fiscal year.

Insiders Place Their Bets

In other Fastly news, CEO Todd Nightingale sold 49,816 shares of Fastly stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $6.25, for a total value of $311,350.00. Following the transaction, the chief executive officer now owns 1,600,973 shares in the company, valued at $10,006,081.25. The trade was a 3.02 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Artur Bergman sold 16,922 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $6.25, for a total transaction of $105,762.50. Following the transaction, the chief technology officer now owns 6,138,900 shares of the company’s stock, valued at approximately $38,368,125. This represents a 0.27 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 249,190 shares of company stock worth $2,047,230 in the last quarter. Corporate insiders own 6.70% of the company’s stock.

Institutional Investors Weigh In On Fastly

Hedge funds and other institutional investors have recently bought and sold shares of the company. Point72 DIFC Ltd acquired a new position in shares of Fastly in the second quarter valued at approximately $38,000. FMR LLC raised its position in Fastly by 124.2% during the 3rd quarter. FMR LLC now owns 6,357 shares of the company’s stock worth $48,000 after purchasing an additional 3,522 shares during the last quarter. Daiwa Securities Group Inc. grew its position in shares of Fastly by 95.3% in the 2nd quarter. Daiwa Securities Group Inc. now owns 8,849 shares of the company’s stock valued at $65,000 after buying an additional 4,318 shares during the last quarter. Aigen Investment Management LP bought a new position in shares of Fastly during the third quarter worth about $89,000. Finally, Lombard Odier Asset Management USA Corp bought a new stake in Fastly in the second quarter valued at approximately $114,000. Institutional investors own 79.71% of the company’s stock.

About Fastly

Fastly, Inc operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet.